Nigeria Liquefied Natural Gas (NLNG) has announced plans to invest more than $10 billion into the gas company to boost its capacity by 40%. This according to the company will allow it export 66 million cubic metres a year to markets in Europe and Asia, Nairametrics has reported.
According to Bloomberg, NLNG’s major shareholders Royal Dutch Shell, Total SA and the Nigerian National Petroleum Corporation (NNPC) are, however, skeptical about the profitability of the new expansion drive.
The report noted that the high level of insecurity in the oil-rich Niger-Delta, higher taxes, and unstable gas prices are some of the major concerns delaying the implementation of the new expansion project.
Nigeria, last year, shipped an estimated 46 million cubic metres of Liquefied Natural Gas (LNG), making it the fourth largest exporter of LNG in the world.
The new expansion will see the construction of two new processing trains to add to an existing six trains.