{"id":8799,"date":"2023-11-21T13:41:25","date_gmt":"2023-11-21T13:41:25","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8799"},"modified":"2023-11-21T13:41:25","modified_gmt":"2023-11-21T13:41:25","slug":"saudi-arabias-new-gas-discoveries-wont-impact-nigerias-lng-business-expert","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8799\/","title":{"rendered":"Saudi Arabia\u2019s new gas discoveries won\u2019t impact Nigeria\u2019s LNG business \u2013 Expert"},"content":{"rendered":"<div class=\"entry-content\" itemprop=\"description\"><p><span class=\"pre-content-text\"><a style=\"color: #0038a8;\" href=\"https:\/\/roydadnaft.ir\/English\/\">RoydadNaft &#8211; <\/a><\/span>\u00a0<span data-contrast=\"auto\" data-reader-unique-id=\"11\">Saudi Arabia\u2019s new natural gas discoveries are no threat to Nigeria\u2019s LNG business. This is according to Kayode Oluwadare, the Regional Energy Partner at Energy Compact.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"12\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"13\"><span data-contrast=\"auto\" data-reader-unique-id=\"14\">He told Nairametrics on Monday, that the new natural gas discoveries in Saudi Arabia do not pose a threat to Nigeria being a partaker of the global liquefied natural gas (LNG) market. <\/span><\/p>\n<p data-reader-unique-id=\"15\"><span data-contrast=\"auto\" data-reader-unique-id=\"16\">According to him, Nigeria\u2019s LNG business challenge is not a market-side problem, rather, it is a production-side problem.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"17\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"18\"><span data-contrast=\"auto\" data-reader-unique-id=\"19\">He said that Nigeria Liquefied Natural Gas Limited is currently operating below 50% capacity due to consistent crude oil theft \u2013 a situation which has compounded feed gas stock access to a high degree. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"20\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"21\"><span data-contrast=\"auto\" data-reader-unique-id=\"22\">He stated further that the global LNG market is big enough to accommodate everyone but if Nigeria is unable to secure significant LNG investment on the scale of Qatar and Abu Dhabi, he sees the situation affecting future LNG projects in Nigeria.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"23\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"29\"><span data-contrast=\"auto\" data-reader-unique-id=\"30\">He said:<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"31\">\u00a0<\/span><\/p>\n<ul data-reader-unique-id=\"32\">\n<li data-reader-unique-id=\"33\"><i data-reader-unique-id=\"34\"><span data-contrast=\"auto\" data-reader-unique-id=\"35\">\u201cI do not think the activities in Saudi Arabia are a threat to Nigeria. The issue here is that the JV partners of the Nigerian Liquefied Natural Gas (NLNG) Limited, have failed to tackle the feed gas problem in the country which has been a challenge due to crude oil theft.\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"36\">\u00a0<\/span><\/li>\n<li data-reader-unique-id=\"37\"><i data-reader-unique-id=\"38\"><span data-contrast=\"auto\" data-reader-unique-id=\"39\">\u201cInvestors are now looking at floating liquefied natural gas (FLNG) projects to invest in, instead of onshore liquefaction plants. This is because, with that, they are able to access flared gas offshore as the onshore feed gas access is a challenge.\u201d\u00a0\u00a0<\/span><\/i><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"40\">\u00a0<\/span><\/li>\n<\/ul>\n<p data-reader-unique-id=\"41\"><span data-contrast=\"auto\" data-reader-unique-id=\"42\">Oluwadare also told Nairametrics that although Saudi Arabia has mentioned that it has plans to delve into the LNG market, typically, it will take eight to ten years to fully develop gas liquefaction infrastructure and he is sure that as a new entrant into the global LNG market, there is a likelihood that LNG from Saudi Arabia will not be ready in this decade.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"43\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"47\"><span data-contrast=\"auto\" data-reader-unique-id=\"48\">He stated further that although Saudi Arabia will join other Gulf LNG leaders \u2013 Oman, Qatar and Abu Dhabi in the global LNG market, it is not a problem for Nigeria because the demand for LNG is so huge that Nigeria can still be a player in the market. <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"49\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"50\"><span data-contrast=\"auto\" data-reader-unique-id=\"51\">To buttress his point, he said that the current global demand for LNG volumes is 400 million tons per annum (mtpa). Meanwhile, there are projections that by 2030, the demand for global LNG volumes will be around 700 million tons per annum (mtpa). <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"52\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"53\"><span data-contrast=\"auto\" data-reader-unique-id=\"54\">Oluwadare recommends that Nigeria should have more non-associated gas for future LNG operations and then it can effectively contribute its quota to the huge opportunities available in the global liquefied natural gas (LNG) market, mostly targeting European markets which favour spot contracts as opposed to Asian markets that favour long-term LNG contracts.\u00a0 <\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"55\">\u00a0<\/span><\/p>\n<h4 data-reader-unique-id=\"57\"><b data-reader-unique-id=\"58\"><span data-contrast=\"auto\" data-reader-unique-id=\"59\">Backstory<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"60\">\u00a0<\/span><\/h4>\n<p data-reader-unique-id=\"61\"><span data-contrast=\"auto\" data-reader-unique-id=\"62\">On Sunday, November 19, Saudi Energy Minister Prince Abdulaziz bin Salman shared exciting news about the identification of two new gas fields in Saudi Arabia\u2014one located in the Eastern Province and another in the Empty Quarter region.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"63\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"64\"><span data-contrast=\"auto\" data-reader-unique-id=\"65\">The Ministry of Energy, through an official statement, revealed that Saudi Aramco, the national oil company, made the initial discovery at the Hanifa reservoir in the Al-Hiran-1 well. <\/span><\/p>\n<p data-reader-unique-id=\"66\"><span data-contrast=\"auto\" data-reader-unique-id=\"67\">The field was uncovered after gas surged at a rate of 30 million standard cubic feet (scf) per day from this reservoir, alongside 1,600 barrels of condensate. <\/span><\/p>\n<p data-reader-unique-id=\"68\"><span data-contrast=\"auto\" data-reader-unique-id=\"69\">Additionally, gas was found flowing at a rate of 3.1 million standard cubic feet (scf) per day from the Arab-C reservoir within the same field.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"70\">\u00a0<\/span><\/p>\n<p data-reader-unique-id=\"71\"><span data-contrast=\"auto\" data-reader-unique-id=\"72\">The second breakthrough occurred at the Al-Mahakek-2 well, witnessing natural gas flow at a rate of 0.85 million scf per day. <\/span><\/p>\n<p data-reader-unique-id=\"73\"><span data-contrast=\"auto\" data-reader-unique-id=\"74\">Notably, in previously discovered fields, five other reservoirs revealed the presence of natural gas. This included the Jalla reservoir within the Assekra field, where gas streamed at a rate of 46 million scf per day.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\" data-reader-unique-id=\"75\">\u00a0<\/span><\/p>\n<div class=\"post-date no-social-btn post-updated\">Updated on<time class=\"updated dt-updated\" itemprop=\"dateModified\" datetime=\"2023-11-21T13:41:25+00:00\"> 21 November 2023<\/time><\/div><\/div>","protected":false},"excerpt":{"rendered":"Saudi Arabia\u2019s new natural gas discoveries are no threat to Nigeria\u2019s LNG business. This is according to Kayode Oluwadare, the Regional Energy Partner at Energy Compact.","protected":false},"author":1,"featured_media":8801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[47,20,46,36,19,42,35],"tags":[],"services":[],"class_list":["post-8799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-gas","category-international","category-lastnews","category-news","category-politics","category-topnews"],"_links":{"self":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/8799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/comments?post=8799"}],"version-history":[{"count":0,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/8799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media\/8801"}],"wp:attachment":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media?parent=8799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/categories?post=8799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/tags?post=8799"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/services?post=8799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}