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Markets & Forecasts

Nigeria LNG expansion – an FID with caution

An FID on the NLNG expansion project marks a key milestone in Nigeria’s ambition to boost LNG exports, but market-related and financing hurdles remain An FID on the NLNG expansion project marks a key milestone in Nigeria’s ambition to boost LNG exports, but market-related and financing hurdles remain.
By Abhishek Kumar 6 January 2020 Middle East & Africa / LNG 0 34904
Nigeria's Bonny Island LNG plant. (Shell)

Directional impact on forecast:
Upbeat for Nigerian LNG exports

Nigeria has moved a step closer to bolstering its liquefaction capacity after taking FID on the delayed Nigeria LNG (NLNG) expansion project in late December 2019. Nevertheless, it will not be plain sailing for the project despite the investment decision. A closer look at the FID reveals the project’s ambitions have been watered down in line with unfavourable commercial environment and adverse market dynamics.

The FID was announced on 27 December, with the project set...