Saudi Arabia's Gas Discoveries Unlikely to Affect Nigeria's LNG Business, says Energy Expert
Kayode Oluwadare, Regional Energy Partner at Energy Compact, reassures that Saudi Arabia's recent gas discoveries pose no threat to Nigeria's LNG business. Oluwadare emphasizes that Nigeria's LNG challenge is production-oriented, with current operations below 50% capacity due to persistent crude oil theft hindering feed gas access.
He points out that global LNG market growth offers substantial opportunities for all participants. However, Oluwadare suggests that Nigeria must address feed gas issues to attract investments comparable to Qatar and Abu Dhabi. Investors are increasingly turning to floating liquefied natural gas (FLNG) projects, given the challenges associated with onshore liquefaction plants.
Regarding Saudi Arabia's LNG plans, Oluwadare believes the development of gas liquefaction infrastructure typically takes eight to ten years. He notes that even as Saudi Arabia joins other Gulf LNG leaders, such as Oman, Qatar, and Abu Dhabi, the massive global LNG demand (projected to reach 700 million tons per annum by 2030) ensures room for Nigeria as a key player.
To secure a prominent role in the LNG market, Oluwadare recommends Nigeria focus on non-associated gas for future operations. He highlights the significant opportunities in the global LNG market, particularly targeting European markets that favor spot contracts over Asian markets preferring long-term contracts.
In a recent announcement, Saudi Energy Minister Prince Abdulaziz bin Salman revealed the discovery of two new gas fields in Saudi Arabia. Despite this, Oluwadare remains optimistic about Nigeria's LNG prospects, urging a strategic approach to ensure long-term competitiveness.
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