Chinazor Megbolu |
Reports by Wood Mackenzie has said that renewable energy may stall the country’s Nigeria Liquidfied Natural Gas (NLNG) Train 7 project.
The report hinted that over 77 per cent of the new liquefied natural gas (LNG) supply may be at risk.
It also added that renewable energy and energy storage may be put to risk the government’s drive to harness its 203.16 trillion cubic feet (TCF) gas reserves towards boosting economic activities and revenue generation.
It also stated that nation’s further expansion of LNG infrastructure, especially in the area of Train 7 may end up not recording a boost.
Recall the Minister of State for Petroleum Resources, Dr. Timipre Sylva, noted that the LNG aggressive idea is to unlock revenue and economic potentials of gas, while declaring 2020 as the Year of Gas.
Furthermore, the Nigerian National Petroleum Corporation (NNPC) and the Nigeria LNG Limited (NLNG) also signed a Memorandum of Understanding (MoU) for the engineering, procurement and construction (EPC) contracts for the LNG Train 7.
The contract, the report added, triggered the effective commencement of the detailed design and construction phase of the multi-billion dollar project.
The project, the report said, is expected to increase the plant’s current Train 6 capacity by 35 per cent, from the extant 22 million tonnes per annum (MTPA) to 30 MTPA.
Wood Mackenzie report, however, pointed out that the demand on gas would come under pressure from breakthrough investment in renewables, energy storage in the power sector, efficiency improvement and adoption of new technologies in non-power sectors.
The Principal Analyst, Wood Mackenzie, Ms. Kateryna Filippenko in the report maintained that weaker global gas demand will boost space for limited new developments.
She also noted that the development showed a significant challenge for organisations considering Final Investment Decision (FID) on new projects
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