Delay in Nigerian LNG Projects Has Cost the Country $1.5 Bn

Nigeria has lost more than $1.5 billion due to delay in startup of the Brass and Olokola LNG projects.

According to Nigerian Tribune newspaper, the two LNG plants have been in comatose state since five years, with no significant work going on.

Over $500 million and $1 billion have already been spent on 5.5 million metric tonnes per annum Olokola LNG and 10 million metric tonnes per annum Brass LNG, respectively, the newspaper says.

“By 2020, it is possible we would find a situation, where significant funds would have been spent by other countries on their gas projects and these countries would now become new sources of gas supply to the market,” a former employee of Nigeria LNG Limited (NLNG), Victor Eremosele said.

Eromosele, who spoke at the ongoing World Petroleum Congress (WPC) in Moscow, said decline in price of gas because of increased supply of shale gas in US and new gas discoveries in Africa would also pose a threat to Nigerian gas revenues, Nigerian Tribune reports.