While several liquefied natural gas projects in Nigeria continue to suffer from lack of final investment decision by shareholders, Italian oil giant, Eni, and others have signed off on a $7bn investment to export natural gas from Mozambique, The Punch reports.
Eni is a shareholder in two of Nigeria’s LNG projects that have been unable to secure FID from the shareholders since 2007. The company holds 17 per cent equity participation in the Brass LNG project and 10.4 per cent in Nigeria LNG Limited, which has been struggling to develop its proposed Train 7 project. Once built, the Floating LNG plant with a capacity of about 3.4 million tons per year, described as the first FLNG in Africa and the third globally, will draw gas from the Rovuma Basin where Eni made its first major Mozambique find in 2011.
The founder and Chief Executive officer, GasInvest Limited and former group executive director of gas and power at NNPC, Mr. David Ige described the Mozambique LNG plant as a possible threat to Nigeria’s market share in the global gas market. He said that Nigeria’s market share in the global market had continued to drop as new entrants entered the market, stressing the need for new LNG projects such as Brass and Train 7. He added that the country’s aspiration in the LNG market is to maintain focus on high-value exports and strive within that framework for about 10 per cent of global market share.