Nigeria LNG’s Revenue Sinks 30% On Year On Low Oil Prices

Ijeoma Agudosi/Joseph Bakare
Nigeria LNG, owner of the six-train Bonny LNG plant in the Niger Delta, said its January-April revenue fell 30 percent year on year due to the slump in global oil prices.

Isa Inuwa, deputy managing director, told a shareholders meeting that NLNG’s share of the global LNG supply shrank during the same period to about 5 percent from 8 percent.

He said the company is battling new LNG supply sources and dwindling international demand.

“Our prices are indexed to crude, at least a significant portion of our portfolio,” Inuwa was quoted as saying. “The price of gas is indexed to Brent, hence if there is a fall in the prices of Brent, it means we will sell for less.”

The Bonny LNG plant currently produces 22 million mt/year and exported 315 cargoes in 2014, according to company data.

Inuwa was quoted saying that NLNG has started renegotiating contracts with buyers of supply from the first three trains. Contracts with Enel, Gas Natural, Botas and GDF Suez were signed in 1999.

NLNG is owned jointly by state oil firm Nigerian National Petroleum Corp. (49%), Shell (25.6%), Total (15%) and Eni (10.4%).

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