Nigeria’s share of global LNG market slips by 1.26%

Nigeria’s share of the global Liquefied Natural Gas (LNG) market share slipped by 1.26 percent in 2013, analysis of data from International Gas Union (IGU) World LNG Report 2014 shows.

The report shows that Nigeria accounted for 7.13 percent of the global LNG market in 2013, compared to 8.39 percent recorded in 2012, representing a 1.26-percent drop in its market share. The country’s traded volume also decreased by 15 percent to 16.89 million tonnes in 2013, against 19.95 million tonnes traded in 2012.

Our finding shows that the 16.89 million tonnes traded in 2013 was the least volume of LNG Nigeria ever traded with other countries in the last four years.

Starting from 2009, Nigeria’s LNG export has been on the increase. Nigeria’s LNG export increased by 52 percent to 17.96 million tonnes in 2010, from 11.8 million tonnes exported in 2009. It increased to 18.75 million tonnes in 2011 and 19.95 million tonnes in 2012, which is the peak traded volume recorded in the period under review.

Although Nigeria climbed the global LNG supplier ladder from 10th position to 7th position in 2009 and 5th position in 2012 and 2013, industry observers believe the country’s loss of global LNG market was due to a delay in the expansion of the six trains Bonny LNG Plant in the Niger Delta.

Other observers hold the view that except Nigeria fast-tracks the development of its two new LNG plants (Olokola and Brass) in addition to the existing one, it faces the risk of losing out from more LNG markets like it did in Europe and America.

Furthermore, with a new entrant into the global LNG market, and re-exporting from other competing countries, analysts say Nigeria’s share of the market may fall further.

Angola has joined the list of LNG exporting countries, sending out five commissioning cargoes in the second half of 2013, while eight additional countries – Belgium, Brazil, France, The Netherlands, Portugal, South Korea, Spain and the US – re-exported LNG, with The Netherlands and South Korea re-exporting their first cargoes in 2013.

That notwithstanding, there is room for improvement for Nigeria between now and 2015. The International Energy Agency (IEA) in its latest Medium-Term Gas Report points out that major new sources of supply are not expected to come online before 2015, even though buyer activity is intensifying in Latin America.

The LNG market has stabilised at around 240 MT (more than 1/3 of which is marketed under <5 year contracts) until new supplies are available from Australia and Papua New Guinea.

OLOWA PETER