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Nigeria looks to expand LNG capacity

03rd May 2012

The Nigerian oil industry, at full capacity, has the potential to alleviate global supply issues and assume a role as a global strategic player.

Nigeria currently has a 26 million tonnes per annum LNG capacity

Nigeria is looking to expand its Liquefied Natural Gas (LNG) capacity from the current 26 million tonnes per annum, (MTPA), with additional 20 MTPA through the planned Brass LNG.

Minister of Petroleum Resources, Diezani Alison-Madueke in Washington this week said Nigeria’s oil and gas reserves, estimated at 37 billion barrels, puts the country in a leading position globally.

The oil and gas industry is pivotal to global economic stability and security, she said.

Calls for wider and more diverse energy supplies, and a shift to cleaner fuels such as natural gas provide the perfect opportunity for countries rich in resources to become major economic, players she said.

 “It is against this backdrop that Nigeria’s oil and gas industry features as a major strategic lever in the global economic order and global security,” she said.

Nigerian petroleum supplies are strategically located in the heart of the Gulf of Guinea, one of the three most important future hydrocarbon regions of the world, after the Middle East and the Soviet Union, as well as the fact that its location is proximal to major consuming centres such as the US and Europe, Nigerian newspaper Business Day reported.

“More importantly, it benefits from the absence of narrow ship maritime lanes known as choke points such as the Strait of Hormuz in the Persian Gulf or the Gulf of Suez. Preservation of these choke points has been responsible for some of the world’s most visible tensions,” she added.

In addition to building a gas-based domestic industry, through gas to power, petrochemical and fertilizer plants, Nigeria, she said, also intends to expand its  LNG capacity from current 26 million tonnes per annum, (MTPA), with additional 20 MTPA through the Brass LNG, which final investment decision, she said was fast approaching.

Nigeria currently aspires to grow her crude oil reserves to 40 billion barrels and increase production capacity to 4 million barrels by 2020.

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