Nigeria’s tough economic realities caused by the continuous fall in global crude oil prices may worsen as the country’s other source of revenue, gas, is currently being threatened at the international market, the Nigeria Liquified and Natural Gas company has warned.
The NLNG also noted that the fall in global oil prices would continue till the end of 2015, adding that it might worsen in the coming year.
The firm, in a communique that was made available to our correspondent in Abuja, expressed worry over the impact which the fall in crude prices was having on its revenue, stressing that the entry of the United States and Australia into the LNG market was “a real cause for concern.”
The communique which summarised the third NLNG commercial division external stakeholders forum that was held in Abuja, noted that although these challenges were being managed, the regulatory environment had shown increasing uncertainties.
The firm said, “The recent fall in crude oil prices from above $100/bbl ($100 per barrel) in early 2014 to below $60/bbl in early 2015 and its impact on global LNG/gas prices as well as the demand/supply positions in both our primary and secondary markets in the Atlantic and Pacific Basins have had a significant impact on our revenues and profitability.
“The trend which will persist till the end of 2015 and which may even worsen going into 2016 with the entry of US and Australian LNG volumes into the market is a real cause for worry.”
Nigeria has one of the largest gas reserves in the world and is the second largest supplier of LPG globally, supplying four million tons of the product per annum. In Nigeria, LPG is primarily used as cooking gas.
Although NLNG is the primary source of LPG in Nigeria, a bulk of supply into the country is being imported.