Brass LNG Terminal

From Global Energy Monitor
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Brass LNG Terminal was a proposed LNG terminal in Bayelsa State, Nigeria. The project had been cancelled, but in 2022 Nigeria's government indicated it was looking to revive the project.[1]

Location

The map below shows the location of the town of Twon-Brass, the approximate location where the terminal would be located, in Bayelsa state.

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Project details

  • Owner: Brass LNG Ltd
  • Parent: Nigerian National Petroleum Corporation (49%), ConocoPhillips (17%), TotalEnergies (17%), and Eni SpA (17%)[2]
  • Location: Twon-Brass, Bayelsa State, Nigeria
  • Coordinates: 4.31, 6.246 (approximate)
  • Type: Export[3]
  • Trains: 2[3]
  • Capacity: 10 mtpa, 1.43 bcfd (5 mtpa per train)[3]
  • Status: Proposed[1]
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In October 2003, the Nigerian National Petroleum Corporation (NNPC), U.S. firms Chevron and ConocoPhillips, and Italian firm Eni signed an agreement to create Brass LNG Limited. In November 2004, Brass LNG Limited awarded a construction contract to Bechtel to build a two-train, 10 million metric tons per year (mtpa) liquefied natural gas (LNG) terminal in Nigeria's Bayelsa state. The plan was for construction to begin in Q3 2006.[4]

Since then, a number of different companies have rotated in & out of the project. Chevron left in 2006,[5] while Total joined in 2008.[6] ConocoPhillips pulled out of the project in 2014, as part of their overall withdrawal from Nigeria — leaving NNPC, Eni, and Total as the participating companies.[7]

Originally, the project was supposed to cost around $8.5 billion. However, some officials put the cost upward between $15 billion and $20 billion.[8]

In January 2017, after lying dormant for years, the project was rekindled following a meeting in London. $1 billion had already been spent on the project as of that date, but no final investment decision (FID) had been signed.[9] As of March 2017, the project's sponsors needed to find a new company to take on ConocoPhillips's share.[10] In June 2017, NNPC said that the project's sponsors were trying to redesign the project and find a market for the LNG; these tasks would need to be completed before an FID could be signed.[11]

As of June 15, Governor Seriake Dickson of Bayelsa State, who campaigned on a platform of bringing development and investment to the region, is trying to move forward with the proposed Brass LNG plans by working with the Federal government to expedite the process.[12]

According to the International Gas Union’s World LNG 2017 report, Nigeria was the fourth largest LNG exporter by share after Qatar, Australia, and Malaysia between 2015 and 2016.[13]

Since its re-announcement in 2017, the project has been stalled by a lack of final investment. The project was to be built by the NNPC, Chevron, ConocoPhillips and Eni Group, but ConocoPhillips and Chevron have since withdrawn from the project.[14]

In April 2022, Nigeria's government indicated that it was looking to revive the project.[1]

Articles and resources

References

  1. 1.0 1.1 1.2 Esau (i_esau), Iain (2022-04-20). "'We want project to pull through this time': Nigeria minister talks up Brass LNG revival | Upstream Online". Upstream Online | Latest oil and gas news. Retrieved 2022-06-06.
  2. Nigeria to review US $18bn Brass LNG project, Construction Review Online, December 12, 2019
  3. 3.0 3.1 3.2 Brass LNG Terminal, A Barrel Full, accessed April 7, 2021
  4. Brass LNG Project: Front End Engineering and Design Contract Awarded, Bechtel press release, 11 Nov. 2004.
  5. Chevron Pulls Out of $3.5bn Brass LNG Project, Proshare, 19 Feb. 2006.
  6. Total and CNOOC strengthen their partnership and sign an agreement to supply LNG to China, Total press release, 16 June 2008.
  7. Investors Meet in January on Brass LNG, Uncertainty Looms over OKLNG, This Day, 29 Dec. 2016.
  8. Martin Ayankola, "Brass LNG project may cost over $15bn", The Punch Newspaper, January 30, 2010
  9. Rekindled Hope for Brass LNG Project, This Day, 31 Jan. 2017.
  10. Nigeria’s Brass LNG project faces restructure, Interfax Global Energy, 31 Mar. 2017.
  11. Embargo on $20bn Brass LNG projects FID worsens Nigeria’s revenue deficit, New Telegraph, 2 June 2017.
  12. Dickson Moves to actualise $20bn Brass LNG Project, Vanguard, June 15, 2017
  13. "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  14. Femi Asu,Nigeria incurring huge losses over stalled $30bn LNG projects — Experts Punch Nigeria, February 27, 2019

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External resources

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