Africa LNG: Nigeria’s revenue drops 37% in 2015

Nigeria LNG, operator of the giant Bonny export plant, posted a 36.6% drop in its revenue in 2015 due to declining oil and gas prices.

Low crude prices, that fell more than 70% from 2014, hit NLNG’s revenue as most of the company’s contracts are indexed to oil.

NLNG earned US$6.84 billion in 2015, as compared to $10.8 billion in the year before, according to NLNG’s annual report posted on the company’s website on Wednesday.

NLNG currently has 16 long term LNG sale and purchase agreements (SPAs) executed with 11 buyers on a DES basis.

These buyers include Enel, Gas Natural, Botas, Engie, GALP Gas Natural, BG LNG (now part of Shell), Endesa, ENI, Iberdrola, Shell International Trading Middle East Ltd and Total Gas and Power Ltd.

The Bonny Island facility currently has six trains in operation with a total capacity of some 22 mtpa of LNG.

According to the report, NLNG’s expansion plan under the Train 7 Plus project, which will raise the liquefaction capacity to over 30 mtpa, “continues to make progress” toward a final investment decision (FID). SPAs have already been executed with five buyers, the report said.

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