Daily Trust: How We're Remarketing Nigeria's Gas to New Buyers - NLNG

Deputy Managing Director, Nigeria Liquefied Natural Gas Limited (NLNG) Isa Mohammed Inuwa in this interview says despite the challenges of increasing oversupply in the global Liquefied Natural Gas (LNG) market and dwindling revenues, NLNG has already developed a remarketing strategy aimed at attracting existing and new buyers of the country’s gas resources.

The crash in the price of crude oil has translated to a drop in revenue for the Nigeria LNG and to the country. Can we get a clearer picture of this revenue dive? 

I think the most important things to understand is that our prices are indexed to crude, at least a significant portion of our portfolio; the price of gas is index to Brent. If there is a fall in Brent price it necessarily means that we will sell for less.
The other thing to look at is the demand side. LNG is a substitute fuel and you can switch between LNG in most instances and other hydrocarbons (namely: crude, naphtha, diesel etc).Those are the two sources of drop in revenue: crude price because a significant portion of our portfolio is indexed to crude and the fact that LNG is a substitute, in order words most users can move to other sources of energy. So, yes we have been affected.

Read the full interview HERE.