Make a simple calculation: see how much money was earned by exporting LNG from NLNG, determine how much LNG that was in terms of Diesel Liter Equivalents (DLE), then look how much Nigeria had to fork out in cash in order to import all this Diesel. If the Diesel sum is bigger (trust me, it is) Nigeria makes a bad deal by exporting LNG. You might think now – easy fix, keep the LNG in the country and use it there. But that’s not so easy as firstly there is no infrastructure to deal with such a sudden inflow of LNG properly and secondly, there are massive entrenched interests like the diesel lobby that fights domestic LNG tooth and nail as they fear for their livelihoods and those are politically very well connected. So, does domestic gas in Nigeria make sense – you bet. Will it be easy to implement – hell no. I am not holding my breath.
Mr. Austine Avuru is the Co-founder/Chief Executive Officer of Seplat Petroleum Development Company Plc. In this interview with HELEN OJI, he enumerated the economic gains of gas-generated power, as well as how the company’s huge investment in gas, especially the recent $700 million project, would enhance profitability and shareholders’ value.