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Bright outlook for LNG up to 2030s — Report

LNG Vessel

By Udeme Akpan

THERE are indications that the output of the Nigerian Liquefied Natural Gas, NLNG, train-7 will attract higher demand globally, going by the forecast by DNV GL, a globally renowned oil & gas research organisation.

In its latest report obtained by Vanguard, DNV GL stated: “Nearly half of senior oil and gas professionals are actively preparing for the transition to a lower-carbon energy mix. The clear majority agree that gas will play an increasingly important role over the next decade; the stage is set for it to become the world’s largest energy source in the mid-2030s.

“The energy transition is the primary driver for investment in natural gas and liquefied natural gas (LNG) projects in 2018. As the oil and gas sector prepares for gas to overtake oil as the world’s primary energy source in the mid-2030s, nearly two-thirds (64%) of the industry’s senior professionals expect to increase or sustain spending on gas projects in 2018.”

The report stated further: “Nearly three-quarters (72%) believe that, as traditional coal energy generation is significantly reduced over the coming decades, the long-term attractiveness of gas will flourish.

“The organisation predicts that global oil demand will plateau over the coming 15 years, peaking in the early 2020s, adding that global gas demand will grow for another two decades, peaking only in the mid-2030s.

It stated: ‘’By then, gas demand will be around 15% greater than in 2017, and gas will have overtaken oil to become the world’s largest energy source.  Of the 813 senior industry professionals surveyed for our 2018 Oil and Gas Industry Outlook, nearly half (44%) report that their organization is actively preparing for a shift to lower-carbon energy mix this year.

Already, NLNG has disclosed that it is seeking $7 billion from the global financial markets to sustain its operations and expansion projects which will increase its production capacity from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

In a statement sent to Vanguard, the company said, “At a ceremony in London today (last week) to commemorate the repayment of a US$5.45 billion Shareholder loan for its existing trains, the Managing Director and Chief Executive Officer of NLNG, Tony Attah, revealed that funds being sought will cover the company’s expansion program (construction of Train 7) and investment in the upstream gas sector in Nigeria that will ensure the sustainability of feedgas supply to its existing trains (Trains 1 to 6) and the new Train 7.”

 


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