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Nigeria's first LNG venture, NLNG, began exporting liquefied gas on a large scale in October 1999. The first of five trains went on stream in June 1999, four months ahead of schedule. The second train was ready in October. The third train is more than 40% complete and will be on stream in the fourth quarter of 2002. The fourth train will begin production in 2004 and the fifth train should be ready by mid-2005.

The first NLNG unit, Train A, began an initial delivery in June 1999. Train B brought the plant's combined capacity to 7.15 BCM/year. Train C will be bigger with a capacity of 3.7 BCM/year. Trains D and E will have a unique state of the art design and the capacity of each unit should be over 5.55 BCM/year, the biggest of their kind in the world.

The NLNG complex at Finima, on Bonny Island, uses associated and free gas from the east Niger Delta. Later associated gas should account for a major part of the feed. This will cut gas flaring in Nigeria considerably.

Firm clients for the capacity of the first three trains have been lined up by Shell, the technical and business manager of NLNG. Shell believes all the five trains will have firm markets across the Atlantic and in the Mediterranean. The five trains will be able to produce about 20% over their design capacity, with the surplus to be sold on spot basis to various markets. This means NLNG is to become a key player in LNG trade on both sides of the Atlantic and in the Mediterranean. Some of the surplus would be sold to other parts of the world.

Shell says Atlantic and Mediterranean demand for LNG will grow from about 8 BCM/year in 2000 to 15 BCM/year in 2005, on a low demand outlook, and possibly to 25 BCM/year on a high demand scenario. As soon as the high demand scenario gets close to reality, before 2005, construction of Trains D and E would begin and Shell would make sure their output would be sold. Shell is considering a sixth unit, Train F, but this may depend on the two other LNG projects in Nigeria (see following articles).
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Publication:APS Review Gas Market Trends
Date:Aug 13, 2001
Previous Article:NIGERIA - Could Supply More Than 30M Tons/Year Of LNG Before 2010.
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