Insight
Lucky number 7 - will NLNG Train 7 take FID in 2019?
Report summary
Nigeria's NLNG Train 7 is making headlines again, having been in and out of the planning stage for over 12 years. What is different this time? Does the plant stack up against other projects? And is it competitive for its partners? The project is gaining more momentum than ever as global demand increases. The IOC partners will be keen to add volumes to their LNG portfolios. But although the project's economics look robust, there are still several key hurdles to overcome before project sanction can be made. Nigeria's political and fiscal uncertainties remain, as do NNPC's funding issues. The question is if NLNG can convince the financial markets to take on these risks. And as global LNG competition heats up, the window of opportunity is closing.
Table of contents
- Background
-
Why is the project being resurrected?
- NNPC funding concerns – is there a solution?
- FEED contract corruption resolved for now
- Reduced Domestic Supply Obligations
- Uncertain fiscal terms
- Militancy in the delta
- Where will all the gas come from?
- How do Train 7's costs compare to competing global supply?
-
Train 7 value and competitiveness
- LNG marketing may not be necessary
- How keen are the partners on Train 7 volumes?
Tables and charts
This report includes 6 images and tables including:
- Figure 1: NLNG feedgas supply and requirement
- Figure 2: Plant construction cost comparison
- Figure 3: NLNG Train 7 project breakeven comparison
- Figure 4: Shell, Total & Eni global gas supply into LNG
- Figure 5: Nigeria remaining PV10 (US$ Billion)
What's included
This report contains:
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