Nigeria LNG Limited

Nigeria Oil & Gas Conference and Exhibition

ByBabs Omotowa

Managing Director/CEO

Nigeria Oil & Gas Conference and Exhibition

Enabling Nigerian Economy - LNG

ByBabs Omotowa

Managing Director/CEO February 20 -23 2012

Nigeria LNG Limited

Global energy use - 30% growth 2030.

Gas will be 31% of this growth.

LNG will be 25% of Gas, from 19%.

Global gas demand robust mid-term

Asia-Pacific market robust

Old (Japan, Korea, etc)

New (China, India, Kuwait, etc)

Europe demand strong till 2020

Global LNG growing 4.5% per annum

Diversification of gas supply sources

Monetises stranded gas and balance portfolio.

Global Gas

Nigeria LNG Limited

Nigeria LNG

Nigeria LNG 6-Trains

18,000 construction jobs at peak

$9 b dividend to country to date ($2.5b invested)

4.4% contribution to GDP

Monetized 67bcf otherwise ‘flared’ gas

Revitalized shipping industry

Bonny – power, water, etc

Nigeria LNG Limited

Nigeria Gas 189tcf proven reserves.

600tcf unproven reserves

Usage less than 50%

Domestic Gas

Dedicated- Power – 13.85 tcf

Dedicated - Industries – 2.45 tcf

Export Gas

Contracted Exports – 27.1 tcf

Other Ded. & committed Exports – 44.8 tcf

Challenges

Infrastructure

Fiscals and Financing (FDI)

Project Execution

Nigeria LNG Limited

Nigeria LNG Projects - ComplementaryGas Proven Reserves – adequate for power and LNG

Australia (110tcf) 10 FID, 81mtpa, 260,000MW power

Financing

Option – NLNG balance sheet, project finance

Capacity creation

Grow local contractors

Train 7

10,000 project jobs by 2015, particularly ND

$8b FDI attraction, additional dividend

Additional Flares out opportunity

Zero cash from Government

Nigeria LNG Limited

Window of Opportunity – Time to Act! Nigeria market share - 10% in 2008, now 8%, will be 5% by 2017

US - former importer; export 2016

HH (mmbtu) $15 2005 now <$3

Qatar - mega trains

77mtpa by 2011

Japan market.

Australia (110tcf) - mega projects

10 LNG projects post FID

20 trains - 81mtpa, $215b FDI

 

Mozambique

FID 2013 - 2-trains for recent find

Competition is between Nigeria and the other countries NOT between Nigeria projects!

Nigeria LNG Limited

Thank you for your attention