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Saturday, June 6, 2020

Nigeria’s LNG export revenue threatened as demand plunges

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The crash in demand for liquefied natural gas in Europe has posed a threat to the Federal Government’s revenue from the exports of the commodity.

The Nigeria LNG Limited, which was established to harness Nigeria’s vast natural gas resources and produce LNG and natural gas liquids for export, is jointly owned by the Federal Government and three international oil companies.

The country generated $1.03bn (N314.15bn) from gas exports in 2019, according to data obtained from the Nigerian National Petroleum Corporation.

The collapse in crude oil price has added to pressure on the LNG prices, some of which are linked to oil.

The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, said in March that over 12 LNG cargoes were stranded in the market globally, for the first time ever.