NIGERIA - Andrew Jamieson.
Jamieson has warned that the emergence of two rival LNG ventures in Nigeria and a similar one being promoted in Angola would threaten his project to expand NLNG's complex from two to six trains. The other two projects in Nigeria are promoted by a partnership of Agip and Phillips Petroleum for one and by ExxonMobil, Chevron/Texaco and Conoco for the other. Although recoverable reserves of natural gas in Nigeria are large enough to feed these ventures as well as the domestic and regional markets for several decades, Jamieson is worried by competition in LNG trade across the Atlantic and in the Mediterranean (see Gas Market Trends 7).
Jemieson's predecessor Ollereanshaw faced an extremely difficult situation as he took over in early March 1997, because then oil minister Dan Etete intervened in Italy without prior agreement with NLNG's board to solve a dispute with Enel over LNG purchases. The crisis took a dangerous turn after Etete withdrew the NNPC directors from NLNG's board and in July 1997 gave the partners an ultimatum. Van den Berg and other Shell heavyweights, including Theo Oerlemans, rushed to help Ollereanshaw in dealing with the problem. To repeated verbal attacks by Etete, the response of Ollereanshaw and his senior colleagues was "the less said the better". The problem was solved in a new 22-year accord signed on Dec. 31, 1997, with NLNG to deliver 3.5 BCM/y of LNG to the Gaz de France terminal of Montoir and GdF to give Enel an equal volume of Algerian and Russian gas by pipeline from France to Italy.
(Oerlemans became chairman and CEO of NLNG in late 1993 to help get the project off the ground. Until then he was head of Shell's gas businesses in South-East Asia, Australasia and the CIS, including the giant oil/LNG venture on Russia's Far Eastern island of Sakhalin).
NLNG has sold surplus LNG on spot basis to CMS Energy in the US. When the first spot cargo left the complex on May 25, 2000, Jamieson said "we expect such trades to be a permanent part of our business in the future...we look at the US market as a very interesting outlet for our LNG, both for spot and long-term sales". CMS Energy took the gas at the Lake Charles receiving terminal in Louisiana.
On Aug. 9, 2001, Shell outlined proposals to build the world's first floating LNG plant in a bid to bypass a stalled development of offshore oil and gas fields between Australia and East Timor. Peter de Wit, the director of Shell Gas & Power for Asia-Pacific, said there would be a second floating LNG plant likely to be located off West Africa. Gas would be processed, liquefied and stored on the barge before being loaded on to LNG tankers every six days for sale to the US.
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|Publication:||APS Review Gas Market Trends|
|Date:||Aug 20, 2001|
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