Nigeria's NLNG aims at starting up Train 7 LNG Project by the end of 2027

Adeleye Falade, the managing director of NLNG's LNG production in Nigeria, told reporters on the sidelines of the Gastech conference held in Bangkok that the company aims to launch its $10 billion Train 7 LNG project before the end 2027.

The Bonny Island project, which will increase NLNG's production capacity from 22 to 30 millions metric tons annually, has been delayed several times, including most recently by the COVID-19 epidemic and the Ukraine War.

Falade, who spoke at the Gastech conference in response to widespread flooding that disrupted NLNG's supply, said that NLNG is still under a 2022 force majeure.

He said that the company will lift this measure once it achieves a 90% utilization. The plant currently operates at a 82%-83% utilization.

Falade stated that "we still have a?delta?of around 15% which?we must close." "Operationally we can do that but our biggest problem is the gas supply. We're working hard with the government and all relevant parties to increase the gas flow to the plant."

He added that the company is focusing on fulfilling its contractual obligations with its customers under force majeure.

Falade said that the Iran War had slowed down the exports through the Strait of Hormuz, which led to a greater?interest for additional LNG volumes and spot cargoes. He said that people are now looking for more reliable, diversified sources of supply.

He added, "Our priority is to continue to?make sure that we fulfill our obligations to existing customers and maximize the production opportunity that?we?have."

NLNG is owned by Nigerian National Petroleum Company. Shell, TotalEnergies, and Eni are some of the foreign partners.

(source: Reuters)