- Nigeria will become the world's third largest LNG exporter

By the end of 2018, Nigeria had a total proven natural gas reserve of 202 trillion cubic feet (TCF), accounting for 37% of Africa's total reserves. Nigeria's natural gas reserves rank first in Africa, ranking 9th in the world. There is an unexplained potential reserve of 600 TCF.

In August 2019, the NNPC / NAOC / Oando joint venture announced the discovery of the equivalent of 1TCF of natural gas and 60 million barrels of related condensate in the deeper layers of the Obiafu-Obrikom field (the coast of the Niger Delta), making Nigeria's proven The total natural gas reserves reach 203 TCF.

In the year from June 2018 to June 2019, Nigeria's natural gas production was 3.04 TCF. This means that the reserve-production ratio is 66.5, that is, according to the current mining status, the proven reserves can continue to produce for 66.5 years. However, as the country's consumption of liquefied petroleum gas (LPG) continues to grow and Nigeria's liquefied natural gas (NLNG) production will increase by 8 MTPA (currently 21.6 MTPA), it is necessary to increase exploration and development of new natural gas reserves.

As of 2018, Nigeria has a global LNG export market of 7.3%, with an annual export volume of 21.3 MTPA. NLNG will make a final investment decision for the Train-7 project, which has been in progress for many years. The project will also require an additional 8 MTPA fee, which will make Nigeria the third largest LNG exporter in the world.

According to reports, other local companies and international oil companies are also increasing the commercialization of natural gas. The Shell and SEPLAT/NPDC joint ventures are advancing a project. In the global LNG export market, where competition is increasing, Nigeria is catching up with the US and Australia.

- Actively expand cooperation with China's natural gas and chemical industry

Nigeria is a member of OPEC, the largest oil producer in Africa, and the largest natural gas reserve country with abundant oil and gas resources. On February 13, 2008, the Federal Government of Nigeria formally approved the national natural gas master plan, including three main strategies: one is to encourage the development of the natural gas industry and make it a booster for the development of the national economy; the second is to strengthen Nigeria in the international natural gas market. Competitiveness and the status of its exporters of high value-added natural gas products; third is to ensure long-term energy security in Nigeria. The main objectives of the plan are three: first, increase gas-fired power generation to meet people's needs for living and industrial production; second, build sub-Saharan Africa's natural gas industrial hub, including natural gas processing center stations, fertilizer plants, petrochemical plants, and methanol plants. Turning the natural gas industry into an industry with added value; the third is to develop West African natural gas pipeline transportation and LNG exports to consolidate and enhance Nigeria's position in the international natural gas market.

In 2013, the Nigerian government proposed three natural gas industrial park free trade zone plans. In May 2014, when Premier Li Keqiang visited Nigeria, President Jonathan expressed the hope that Chinese enterprises would actively participate in the investment and construction of the natural gas industrial park.
 

China has become the world's largest importer of natural gas and the second largest importer of LNG. In 2018, China's LNG imports were about 54 million tons, up 41% year-on-year; it is expected that LNG imports will exceed 60 million tons in 2019. In 2018, China imported 2.26 million tons of LNG from the United States, accounting for 12% of the US LNG exports. However, with the evolution of trade wars and tariffs, the US LNG has lost its competitiveness in the Chinese market. In 2019, the United States exported LNG to China significantly. Falling, almost negligible. This will prompt China to look for other sources of LNG imports.
 

Asia Chemical Consulting expects that China's LNG imports will increase to 74 million tons in 2022, when it will surpass Japan (expected imports of 72-73 million tons) to become the world's largest importer of LNG. Australia is currently one of the major importers of natural gas in China. In addition, China’s imports of LNG from Malaysia have increased significantly in 2019.

In 2018, China imported 7.4 million tons of methanol. Imports from Iran reached 30%, about 2.5 million tons. China's coastal methanol to olefins (MTO) project still needs to import a large amount of methanol raw materials. US sanctions against Iran for the supply of methanol to China may also pose risks.

In recent years, Chinese companies have responded to the “Belt and Road Initiative” initiative and actively invested in large-scale oil and gas and petrochemical projects overseas. As a member of OPEC, Nigeria, the largest oil producer in Africa and the country with the largest natural gas reserves, has attracted a lot of investment. Natural gas and chemicals, including LNG, methanol, MTO, and synthetic ammonia, have also received much attention.

Located in the flagship natural gas industrial park in the Nigerian state, the Kuile Industrial Park, the company aims to provide Chinese investors with unparalleled opportunities for methanol, MTO, ammonia and LNG. Provides competitive natural gas prices and related incentives to complement and complement China's methanol and petrochemical industry chains.

As of 2018, CNOOC's investment in Nigeria has exceeded $14 billion and plans to invest another $3 billion. In 2009, Sinopec acquired the Swiss subsidiary Addax in Nigeria for US$7.24 billion. In November 2012, Sinopec acquired US$2.46 billion in the interests of Total's offshore oilfields in Nigeria. PetroChina and the Nigerian National Oil Company also have cooperation in the construction of natural gas pipelines.

In July 2019, Sinopec Ningbo Engineering Company delivered the core equipment of the Dangote refinery in Nigeria.

Source: Chemical Online

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