edo.girl:
It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.

plaindealer:



1. ND is not the only oil producing region in Nigeria, Ondo state where the project was sited is an oil producing state too.

2. Chevron's oil activities is in Ondo state hence their involvement in the project in Ondo state.


3. ND is not the beginning and end of oil in Nigeria, oil id flowing in other regions too and it's about to start flowing in Lagos too.


4. Ondo and Ogon state are building the OK FTZ/Energy hub and a deep sea port to move LNG and other energy products all over the world in the same area.

5. Dangote is spending $8 billion on his Refinery in the same Olokola FTZ

6. Covenant Ground Refinery is building another refinery in the same Olokola (OKFTZ) in Ondo State too.

The FG and the rest of the shortsighted clowns in Abuja can sabotage and play their usual bad bele game, but their failed LNG project is not the only game in town. It's still full steam ahead for Olokola (OKFTZ).

This is going to be the new Energy Capital of Sub Africa and next in line is the Badagry Energy city...



Thank and like me for this wonderful education...

edo.girl:
It's all down to viability.
The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

edo.girl:
It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.

ono:

Actually the above in bold is not true in its entirety.

I have a very reliable source at Bonny LNG who stated that it was more profitable selling our liquefied natural gas to local manufacturing companies at Aba, Ota, Enugu and elsewhere. We all know that the companies at Aba buys gas from either Shell Gas or LNG. Do you think Shell and Total supply gas to Bonny LNG for free? Very cheap source of energy translates to very cheap product - and you can imagine the multiplier effect on consumer goods etc etc.

As a matter of fact, we as a nation stand to benefit hugely from low energy prices. Environmental degradation as a result of using firewood and kerosene will stop when you can buy cheap liquefied petroleum gas and use for cooking. Imagine every home in Nigeria with gas lines to their homes for cooking. Shouldn't that be something everyone should desire?

guonno:

Before the war they said the igboman wanted to take over nigeria, now tell what a major gas facility is doing between ondo and ogun? Is it cost effective to transport gas from warri, kparamatu, etc to somewhere between ondo and ogun for conversion into LNG? Deltans should not complain but enjoy the one nigeria.

Spiff20: only uninformed people will like dis out of sheer ignorance. Is d LNG gonna be bigger nd beta dan dat of bonny which is d 2nd best in d world. We all know warri 2 be d main oil nd gas zone 4 chevron with d burutu forcados so shut ya mouth up

edo.girl:
It's all down to viability. Truth is LNG is yesterday's news. The world has moved on. Nigeria's biggest LNG project (Brass LNG)has been stuck in phase 2 (called Train 2) when it was planned to have 4 trains. The multinational oil companies are also involved in that project.

The price of LNG collapsed on the world market a few years back, and though it has improved a bit, new gas discoveries have been made in many more countries (including East Africa)thus meaning there are more supply sources. Paradoxically, much of Nigeria's gas can't be sold locally due to low domestic prices.

With LNG no longer in hot demand (as it was when Olokola and the other projects were planned), and no viable domestic market, any surprise investors are pulling back. Investors are hard-nosed profiteers. They are no mugs.

To compound LNG's problem, there is the phenomenon that is shale gas, which is reshaping America's (and soon the world's) energy market. With the discovery of shale gas, LNG prices in America are so low that if you got a ship-load of Nigerian LNG for free, and ship it to the US, by the time it arrives there, the cost of shipping alone will ensure that the 'free' LNG will still be almost as expensive as the current cost of LNG in the American market.

As far as LNG is concerned, OLOKOLA IS DEAD. It's not politics. The project, and others in Nigeria simply are not adding up anymore. What to do is to keep it alive for other industries, and the proposed Dangote refinery is a good step. It can become a cluster for allied petrochemical, plastic, and other industries. It can still achieve serious success.

What we should be doing as a country is seriously looking at rebalancing the economy away from its over dependence on oil. But when you have a political class whose sole desire is to loot, there is no hope of any such rebalancing happening. They are simply not interested.

Ever wondered how much energy, resources, and valuable time this Presidency was spending on Amaechi and PDP's political machinations in Anambra? You get it! Their own personal financial considerations are far more important to them.

plaindealer:


True, with other source of LNG springing up all over the world, the price fell drastically, but you are wrong about local demand and consumption simply because we are still decades behind in gas usage, we mostly still burn fosil fuel and kerosene when we really should have moved away from such relic products to LNG. Our industries and homes are yet to be penetrated because of lack of investment and will by our leaders to see beyond their pockets and greed.

By now, we should be talking about our buses running on LNG, laying gas pipes into our homes and industries.


Saying there is no demand for what we are yet to tap and desperately need to tap on behalf of 160 million population sounds a little bit off. The fact that our lazy and usless leaders are yet to do the right thing doesn't mean the demand is not there, in fact, the demand is huge and untapped..

Billyonaire: Obj blackmailed Ibori to secede land to Ondo so yorubaland can be called oil producing state and went ahead to build that LNG to pipe gas from ND.

That LNG will not work cos ondo and ogun has no gas. Obj's second name is injustice.

bloggernaija: What the heck are you talking about?
Chevron's main oil and gas field is located in ondo state.
Lagos state is about to start producing oil.
There are gas fields off badagry and republic of Benin .
Olokola is located in ondo state.
So dangote was stupid to site his refinery in olokola too,abi?
Which international corporate entity too you think is stupid enough to site a capital intensive project of that nature again in the niger delta?with the insecurity in the place, do you think it is a strategically smart thing to do?
Why do people just open their mouth without thinking?
MARK MY WORD , IT IS GOING TO GET BUILT AND THERE IS NOTHING AGENTS OF RETROGRESSION CAN DO ABOUT IT.

atlwireles:

You are a liar from the kingdom of satan. Chevron is in Ondo state, tell that to any itskeri My God, when did Ondo become an oil producing state, was it not 2003. After OBJ gave oil wells in delta to Ondo

plaindealer:


OK we don hear, there is no oil in ondo and every drop of oil in Nigeria is from ND if makes you snore well at night, but please don't derail or let it degenerate into your usual tribal mud slinging.

Curb your tribal agro for the sake of the thread abeg.

atlwireles:

Sorry, if it came out tribal, but the comment of Ondo producing oil before 2003 has to be dealt with. Also this plant was suppose to be in Ondo/Ogun but the gas is pipe lined from where. This kind of political projects will fail in Nigeria. Those days should be gone forever.

agbameta:


Not that I'm with your argument, but you are entitled to your opinion.

Fact remains that Ondo is an oil producing state and Chevron is in Ondo state and they get their oil from the same Ondo state so it's only natural for them to secure their oil from the same location they operate in which is Ondo state on top of the fact that the same area is a major FTZ with other energy comps including our own DANGOTE investing bilions of dollars in the same location.

So why are they concentrating their energy activities in this very location if tthere is no oil there? Do you think they don't have business sense or how and where to invest their money or do you think they are all political including DANGOTE?

I just don't see any sense in your argument...sorry to say.

edo.girl:
Nigeria is the second largest producer of liquefied petroleum gas in Africa, and the sixth largest producer in the world with over 3million metric tones annually. However, current per capita consumption of the gas in Nigeria is about 0.8kg/annum. This is the lowest in Sub-Saharan Africa; lower than those of Nigeria’s West Africa neighbours who do not produce the product. Annual LPG consumption is in Nigeria for 2010, was put at 120,000MT, whereas, in Lagos alone, there is a potential market for 1,000,000MT annually. Source: http://www.vanguardngr.com/2013/07/natural-gas-importance-and-uses-2/

There you go about our per capita gas consumption. You see the problems we face in this country. You are an insider in the industry, yet you do not appear to be aware of the situation. For all we know, you could be a policy maker in the industry. No wonder the country keeps going around in endless circles.

I don't think I said anywhere that there is no potential for increased pas consumption. My argument is that real demand has been low, given the amount the country produces and was billed to produce. That's why I said, the multinationals are not going to sink in more of their money, hence why Brass (Bonny?) has not moved beyond train 2, and why they are pulling out of Olokola.

Perhaps you have different reasons as to why these projects have stalled.

Burying one's head in the sand and saying that all is well and rosy isn't going to get us anywhere. When other countries can see problems several decades ahead, we insist 'all is well and good.' Should we continue to produce gas, absolutely. Should we increase production when economics demand it, yes. Should we be looking to diversify our economy away from near-total dependence on oil. A bigger yes.

bloggernaija: What the heck are you talking about?
Chevron's main oil and gas field is located in ondo state.
Lagos state is about to start producing oil.
There are gas fields off badagry and republic of Benin .
Olokola is located in ondo state.
So dangote was stupid to site his refinery in olokola too,abi?
Which international corporate entity too you think is stupid enough to site a capital intensive project of that nature again in the niger delta?with the insecurity in the place, do you think it is a strategically smart thing to do?
Why do people just open their mouth without thinking?
MARK MY WORD , IT IS GOING TO GET BUILT AND THERE IS NOTHING AGENTS OF RETROGRESSION CAN DO ABOUT IT.

agbameta:


Not that I'm with your argument, but you are entitled to your opinion.

Fact remains that Ondo is an oil producing state and Chevron is in Ondo state and they get their oil from the same Ondo state so it's only natural for them to secure their oil from the same location they operate in which is Ondo state on top of the fact that the same area is a major FTZ with other energy comps including our own DANGOTE investing bilions of dollars in the same location.

So why are they concentrating their energy activities in this very location if tthere is no oil there? Do you think they don't have business sense or how and where to invest their money or do you think they are all political including DANGOTE?

I just don't see any sense in your argument...sorry to say.

atlwireles:

Have you been to the kaduna petrol chemical plant How many barrels of crude does Northwest Nigeria produce. Omotosho and Olorunsogo were two power plants inaugurated by OBJ. Why did they not produce one single watt of power Till the gas pipelines were installed Where is the gas for those power plants coming from The sad reality in this country, is the ability of some to create make believe scenarios. Those days are gone.

If Ondo state will produce the needed 400,00 barrels of crude oil for Dangote , the man can build as many refineries as he wants in Ondo. But, if he intends to pipeline oil from another place to his refinery other than importing the crude oil from the international market. His plant will go the same way as Olokola LNG. The days of wealth transfer from the SS to other zones are gone for good.You don't have to agree with me, but after the Lagos saga, every man should build his backyard with their own resources.

Also, the injustice of 2003 by OBJ is still in court. The oil wells in Ondo today, will be returned to the rightful owners. That is my State of delta.

plaindealer:



1. ND is not the only oil producing region in Nigeria, Ondo state where the project was sited is an oil producing state too.

2. Chevron's oil activities is in Ondo state hence their involvement in the project in Ondo state.


3. ND is not the beginning and end of oil in Nigeria, oil id flowing in other regions too and it's about to start flowing in Lagos too.


4. Ondo and Ogon state are building the OK FTZ/Energy hub and a deep sea port to move LNG and other energy products all over the world in the same area.

5. Dangote is spending $8 billion on his Refinery in the same Olokola FTZ

6. Covenant Ground Refinery is building another refinery in the same Olokola (OKFTZ) in Ondo State too.

The FG and the rest of the shortsighted clowns in Abuja can sabotage and play their usual bad bele game, but their failed LNG project is not the only game in town. It's still full steam ahead for Olokola (OKFTZ).

This is going to be the new Energy Capital of Sub Africa and next in line is the Badagry Energy city...



Thank and like me for this wonderful education...

vladimiros:

if you think SW is going to replace ND as Niaja main energy Hub

then some of you south westerners have smoked enough of ur utopia..

yes the SW is good, but are you comparing resources in SW to the whole ND?

Please, get a grip and smell reality