Bloomberg News

Nigeria Expects to Sign Accord on LNG Project Next Quarter

February 02, 2012

(Updates with company comment in second paragraph.)

Feb. 2 (Bloomberg) -- An agreement to build a $8 billion liquefied natural gas project in southeast Nigeria is expected to be signed next quarter, said Austen Oniwon, group managing director of state-owned Nigerian National Petroleum Corp.

Gas supply agreements are being resolved and a tender process is going on, Oniwon said today in the capital, Abuja. “Before the third quarter, we will take the final investment decision on Brass LNG,” he said.

The plant will be built at Brass in Bayelsa state in the West African country’s oil-rich Niger River delta. NNPC has a 30 percent stake in Brass LNG, while Total SA, Eni SpA and ConocoPhillips Co. each hold 17 percent. LNG Japan and Itochu Corp. hold 4 percent and 3 percent respectively, and a joint venture between Sahara Group and Sempra Energy has 2 percent.

Nigeria is Africa’s top oil producer and the fifth-biggest source of US oil imports. The West African nation, holder of Africa’s largest gas reserves of more than 187 trillion cubic feet, flares most of the fuel it produces along with oil because it lacks the infrastructure to process it.

OK LNG, in which Chevron Corp., Royal Dutch Shell Plc and BG Group Plc are working with NNPC, “hasn’t made much progress,” Oniwon said.

--Editors: Rob Verdonck, Alessandro Vitelli

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at ebalagbogbo@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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