China cut liquefied natural gas imports in the third quarter over sluggish demand
A total of 953,064 metric tonnes of liquefied natural gas valued at N163.7billion ($355.96million) has been ferried out of Onne Port between August and September, 2020.
The products were ferried by 14 vessels to different destinations in Europe and Asia where the demand is high.
The cargoes left the port at a time China had decided to cut LNG imports in the third quarter due to sluggish demand and fall in LNG spot prices in Asian markets. It was gathered that the China’s comprehensive import price index for liquefied natural gas rose to 2,647 yuan ($373.5) per tonne, last month.
Data obtained from the Nigerian Ports Authority (NPA)’s shipping position revealed that four of the vessels have left Onne Port with 277, 373 tonnes. They include LNG Orashi laden with 64,839 tonnes; LNG Oyo, 64, 342 tonnes; LNG LagosII 77,485 tonnes and Maran Gas Troy, 70,707 tonnes.
Others are LNG Bonny II, 68,610 tonnes; LNG Borno, 66,749 tonnes; Stena Clear Sky, 72,238 tonnes; Maran Gas Sparta, 70,426 tonnes Methane Princess, 61,309 tonnes; LNG Finima II, 74, 756 tonnes; LNG Adamawa, 62,728 tonnes Wilforce, 68,526 tonnes; LNG Abuja II, 73, 569 tonnes and Rioja Knutsen, 56,780 tonnes.
Meanwhile, the Nigerian National Petroleum Corporation (NNPC) had explained that between July 2019 and July 2020, Nigeria flared more gas than it supplied to its domestic industries, averaging about 600.38 million standard feet per day (mmscf/d).
In its July 2020 report on its operations, the corporation said that 490.21mmscf/d of gas was sent to industries on the average, making it less than the volume of gas flared. Also, the volume of gas flared was considerably lower than the average volume – 680mmscf/d sent to power generation companies for power production within the period.
The corporation added that 660.04mmscf/d was flared in July 2019, 698.78mmscf/d in August 2019, 664.70mmscf/d in September, 565.17mmscf/d in October, 632.37mmscf/d in November, and 598.03mmscf/d in December 2019.
Similarly in January 2020, 643.59mmscf/d was flared, 629.88mmscf/d in February, 679.54mmscf/d in March, 617.32mmscf/d in April, 486.19mmscf/d in May, 472.94mmscf/d in June, and 456.35mmscf/d in July 2020.
It would be recalled that in May, 2020, NPA’s shipping data revealed that LNG Adamawa left the country with 63,000 toones; LNG Kano, 60,000 tonnes; LNG River Orashi, 66,000tonnes; LNG Rivers, 63,000tonnes; LNG Lokoja , 66,000tonnes; LNG Oyo , 66,000tonnes; LNG Abuja II , 72,000tonnes; LNG Bonny , 72,000tonnes; LNG Finima II , 72,000tonnes; LNG Ogun , 66,000tonnes and LNG Cross River, 63,000tonnes
Meanwhile, a gas analyst at the International Energy Agency (IEA), Jean-Baptiste Dubreuil, in early June, said LNG trading overall remained high despite the pandemic in 2020. The worldwide glut has funneled more natural gas into storage around the world.
With storage elevated in Europe, the market signaled that supply cuts were necessary. It was gathered United State LNG exporters have seen dozens of cancelled cargoes because of the glut, although for companies like Cheniere Energy, their finances are somewhat protected because buyers still have to pay fees even if they cancel the cargoes.
As of January 2020, the Department of Petroleum Resources said that the country’s total gas reserves stood at 203.16 trillion cubic feet from 202Tcf recorded in 2019, adding that the country has the largest gas reserves in Africa but only about 25 per cent of its reserves is being produced.