…more than Nigeria’s gas sales for eight years
Qatar is spending on infrastructure just for the world cup at $220 billion. This is more than the entire oil sales of Nigeria throughout the 8 years of Muhammadu Buhari.
The question people are asking is, where is Qatar getting this money from? LNG, basically monetizing their gas (same gas that Nigeria is flaring/wasting).
Stakeholders say Nigeria should complete its NLNG train 7, then, invested in trains 8, 9 and 10, also, moved its Brass LNG and Okoloka LNG forwards, but here we are, signing a $25 billion white elephant gas pipeline project to Morocco that will not be completed till the 2040s, if at all.
They say that Qatar has embarrassed Nigeria, especially, as Nigeria is even more of a gas country than an oil country.
According to them, in Europe, the current price of ICIS TTF front-month contract is 51.58/MMBtu.
The rise came despite Gazprom saying it resumed flows into Italy on 5 October, following the resolution of constraints that arose from new legislation introduced by Austrian authorities on 1 October.
Thus, the price for one MT today in Europe is $51.52 MMBTu x factor 52 or $2,679.
If Nigeria produces at $4 MMBTu, our producing price is $208, whilst we can make profits of over $2,400 today if we sign new long term offtake agreements with Europe or Asia.
“On just one 135,000mt shipment, after you minus the cost of gas and extremely high daily charter rates, sellers make over $200 million net profit still.
Nigeria they say should be focusing on fast tracking train 7, signing trains 8, 9 and 10 trains (against bankable offtakes with Europe or Asia), get serious with Brass LNG and OK LNG, to become the next Qatar, US or Australia in LNG, but here we are, discussing a white elephant $25 billion pipeline to Morocco, that will take 12-20 years to build, if at all, which is not bankable and nobody will issue us an offtake agreement for the gas today, unlike for LNG, if we are really serious.
Qatar is now moving from 77 million MT and fast-tracking expansion to 110 million by 2026, adding 33 million MT in the next four years.
“Trains 7, 8, 9, Brass and OK LNG, would have given us maybe 40 million MT of new LNG.”
“If we signed long-term offtake agreements today with Europe at $2,500/MT, that would be $100 billion a year and as long-term contracts can be 10 years, that is $1 trillion in revenue that Nigeria would have earned….if we are serious.”
“Australia has built 87.9 million of LNG export capacity.”
“If Shell, Total and ENI were not involved in NLNG, today, it would be a dead empty shell and just laying there wasting like Ajakouta steel, they said.”
Meanwhile, the United States has around 100 million tons of LNG export capacity, with another 20 million tons under construction and expected to come online by 2025. There are also a dozen or so projects that have export approvals by the Department of Energy and are permitted by the Federal Energy Regulatory Commission.