The National Petroleum Investment Management Services (a subsidiary of the Nigerian National Petroleum Corporation), Shell, Total and Agip – have disagreed over the selection of new gas projects for the $10 billion Liquefied Natural Gas, LNG trains 7 and 8, Vanguard reports.
Shell, Total and Agip – holding 25.6 per cent, 15 per cent and 10.4 per cent interests respectively in the Nigerian Liquefied Natural Gas Limited with the NNPC that has 49 per cent interest had separately selected and presented many gas projects for development to NAPIMS for approval. But at the ongoing engagement with the parties, NAPIMS, a partner in the Joint Venture (JV) assets and the concessionaire in the Production Sharing Contract (PSC) arrangements that manages the Federal Government interests in the oil and gas industry, faulted the selection, arguing that many of them should be implemented for domestic use in the nation.
Specifically, NAPIMS, noted that the measure would go a long way to enable Nigeria provide commercial gas to operators in the power and other sectors of the nation’s economy. A competent source, who confirmed the development said: “After taking a closer look at the planned gas projects, NAPIMS noted that many of them should be developed for local consumption. It is the opinion of NAPIMS that the nation’s energy needs or security should be secured first before meeting the needs and aspirations of foreign buyers through the extra trains of the LNG. Consequently, the partners of potential gas suppliers were directed to review their proposals and re-present them for approval as soon as possible.”