Nigeria LNG, the operator of the giant Bonny export plant, reported a 31% drop in its revenue in 2016 due to low oil and gas prices.
Low crude prices, that fell more than halved from 2014, hit NLNG’s revenue as most of the company’s contracts are indexed to oil.
NLNG earned $4.72 billion in 2016 as compared to $6.84 billion in the year before, according to NLNG’s annual report recently posted on the company’s website.
This is the lowest yearly revenue for Nigeria LNG since 2009 when the company earned $4.54 billion. NLNG recorded the highest revenue in 2012 by earning $11.59 billion.
NLNG is a joint venture compromised of Nigerian National Petroleum Corporation, NNPC (49%), Shell (25.6%), Total (15%), and Eni (10.4%).
It paid $356.1 million in dividends to NNPC last year as compared to $1.04 billion in 2015, the report shows. Shell, Total and Eni received $380.9 million in dividends last year from NLNG.
NLNG currently has 16 long-term LNG deals executed with 10 buyers on a DES basis.
These buyers include Enel, Gas Natural Fenosa, Botas, Engie, GALP Gas Natural, Endesa, ENI, Iberdrola, Shell International Trading Middle East and Total Gas and Power.
The Bonny Island facility consists of six trains in operation with a total capacity of some 22 mtpa of LNG.
NLNG said in the report that is was finalising its strategy for the re-marketing of LNG volumes for the first three Trains whose long-term deals are nearing expiration.
The company added that “activities are also ongoing for the marketing of volumes for the proposed Train 7 project.”
The proposed seventh Train at the Bonny Island plant would raise the total liquefaction capacity to over 30 mtpa.
NLNG also has a fleet of 23 LNG vessels on long-term time charter for its six-train operation, and one domestic LPG vessel, according to the report.(source: LNG World News Staff)