Despite weak demand and low prices, Nigeria has commenced export of 675, 691 metric tonnes of liquefied natural gas valued at N113.6billion ($252.37million) this month to various destinations.
The gas, which has started leaving Onne Port, is being ferried by 10 vessels as price hit $373.5 per tonnes in China.
Although some cargoes have taken longer time to reach their destinations, while others are still idle at sea, data by the Nigerian Port Authority Shipping Position, however, revealed that LNG Bonny II left the Onne Port with 68,610 tonnes; Methane Princess, 61,309 tonnes; Wilforce, 68,526 tonnes; LNG Abuja II, 73, 569 tonnes; LNG Finima II, 74, 756 tonnes; LNG Adamawa, 62,728 tonnes and LNG Borno, 66,749 tonnes.
Other vessels are Stena Clear Sky with 72,238 tonnes; MARAN Gas Sparta, 70,426 tonnes and Rioja Knutsen, 56,780 tonnes.
Also, the country exported 11 billion cubic meter of the natural gas between January and May, 2020 with additional 1.8 million metric tonnes.
It was learnt that over 50 per cent of Nigeria’s exports in May were sold in Asia as against the about 30 per cent sold in the same period last year.
It was revealed that production cost at its LNG facility in Bonny Island was so low that it could still turn a profit despite the weak spot prices amid the impact corona virus pandemic
In May, NPA’s shipping data revealed that LNG Adamawa left the country with 63,000 toones; LNG Kano, 60,000 tonnes; LNG River Orashi, 66,000tonnes; LNG Rivers, 63,000tonnes; LNG Lokoja , 66,000tonnes; LNG Oyo , 66,000tonnes; LNG Abuja II , 72,000tonnes; LNG Bonny , 72,000tonnes; LNG Finima II, 72,000tonnes; LNG Ogun, 66,000tonnes and LNG Cross River, 63,000tonnes.
However, Platts Analytics’ LNG analyst, Luke Cottell, said that there was a record volume of Nigerian LNG on the water in late May, 2020 because of low prices in both Asia and Europe.
Meanwhile, a gas analyst at the International Energy Agency (IEA), Jean-Baptiste Dubreuil, in early June, said LNG trading overall remained high despite the pandemic in 2020.
The worldwide glut has funneled more natural gas into storage around the world. With storage elevated in Europe, the market signaled that supply cuts were necessary.
It was gathered United State LNG exporters have seen dozens of cancelled cargoes because of the glut, although for companies like Cheniere Energy, their finances are somewhat protected because buyers still have to pay fees even if they cancel the cargoes.
As of January 2020, the Department of Petroleum Resources said that the country’s total gas reserves stood at 203.16 trillion cubic feet from 202Tcf recorded in 2019, adding that the country had the largest gas reserves in Africa but only about 25 per cent of its reserves being produced.