Punch newspaper recently reported thus: “NLNG panics as US, Australia enter gas market” http://www.punchng.com/business/business-economy/nlng-panics-as-us-australia-enter-gas-market/
Its this analyst’s opinion that this might be the perfect opportunity for Nigeria LNG Limited and Nigeria to rethink its commercial strategy on gas and LNG use.
It may no longer be appropriate for LNG to be entirely export centred.
We may need to continue with the export of LNG while pushing for domestic use/African use of LNG/Natural Gas.
We should also consider LNG storage tanks for rainy days and to make our production mix more nimble, Floating LNG may just be the way forward. Thankfully Shell has shown the way via its Prelude FLNG in Browse Basin, Australia.
Brass LNG may consider using Floating LNG, it should be cheaper as it does not require land and all the attendant costs like compensation and community relations.
All over the world traditional fossil fuels like petrol and diesel are being replaced with natural gas as it is seen as a cleaner and cheaper alternative.
In America LNG/Natural Gas provides :
a. 76% of the residential and commercial sectors’ energy needs
b. 40% of the industrial sector’s energy needs
c. 18% of electricity generation
d. 3% of the transportation sector’s energy needs
Over 110,000 transit buses, taxi cabs, package delivery trucks and other vehicles operating in the U.S. are fueled with clean-burning natural gas, according to the Natural Gas Vehicle Association.
Heavy duty trucks, trains and ships now run on LNG as it affords them the opportunity to store more fuel using less space!
Japan is pushing LNG for its transportation needs, it intends to use LNG for its buses, trucks and ships while dumping diesel.
There are so many innovative uses of LNG Nigeria that Nigeria may freely adopt. Going by the huge sums of money spent on subsidy and importation of petrol and diesel I dare say that there is a ready market for gas utilisation in Nigeria. Either way the dwindling prices of LNG and the entry of bigger and nimble players offering lower prices into the global LNG market may just be the incentive needed to jump start the natural gas revolution in Nigeria.
There is no point spending money on importing petrol and diesel when we have so much Gas!!!
Olufola Wusu
I work with companies seeking to invest in Nigeria. I solve legal problems and help monetise I.P. & Oil and Gas .
Listed in the prestigious directory of “Who is Who Legal” Nigeria.
http://whoswholegal.com/profiles/65712/0/wusu/olufola-wusu/
