Africa Oil & Gas: Nigeria LNG revenue hit by oil prices

Nigeria LNG, operator of the Bonny export terminal, has reportedly posted a 30% drop in its revenue for the first four months in 2015 as a consequence of weak oil prices.

“Our prices are indexed to crude, at least a significant portion of our portfolio. The price of gas is indexed to Brent, hence if there is a fall in the prices of Brent, it means we will sell for less,” Guardian newspaper cited Deputy Managing Director of NLNG, Isa Inuwa as saying at the company’s shareholders meeting .

According to the report, Inuwa also said that NLNG was considering increasing its gas output to help reduce the effects of the oil slump on its business.

Nigeria LNG’s Bonny Island facility currently has six trains in operation with a total capacity of some 22 mtpa of LNG. It requires about 3.5 bcf/d feedgas intake at full production.

NLNG is a joint venture compromised of Nigerian National Petroleum Corporation, NNPC (49%), Shell (25.6%), Total (15%), and Eni (10.4%).