Riverside LNG of Nigeria and Johannes Schuetze Energy Import AG of Germany have signed an agreement on a gas export partnership,
It is part of the two agreements that involve a $500Million renewable energy pact and gas export deal between Nigerian and German entities.
President Bola Tinubu of Nigeria witnessed the signing of the two Memoranda of Understanding (MoU) in Berlin, Germany, at the 10th German-Nigerian Business Forum, according Ajuri Ngelale, Tinubu’s Special Adviser to the Nigerian President on Media and Publicity
The $500Million cooperation on Renewable Energy brings together Union Bank of Nigeria and Germany’s DWS Group.
David Ige, CEO of GasInvest, who signed the MoU on gas supply, said the Riverside LNG project aims to supply energy from Nigeria to Germany, extinguishing about 50Million cubic feet per day of flared gas in Nigeria.
”The project will supply energy from Nigeria to Germany at 850,000 tonnes per annum, expanding to 1.2Million tonnes per annum.
”The first gas will leave Nigeria for Germany in 2026, and there will be further expansion”, Ige said.
1,2Million tonnes per annum translates to 192Million standard cubic feet per day of gas.
Riverside LNG facility “is strategically located at Ogbelle in Rivers State, Nigeria, connected to the Ogbelle Gas Plant and the Onne Port in the Oil & Gas Free Zone Area”, Riverside LNG says on its website.
The 100MMscf/d Ogbelle gas processing plant, operated by Aradel Holdings, currently supplies gas to the Nigerian Liquefied Natural Gas (NLNG) system in Bonny as well as a last mile supplier of Compressed Natural Gas (CNG), The plant will now add Riverside LNG to its offtakers.
Mr. Ige, a former reservoir engineer at the UK major Shell, manager at Accenture and latterly group executive director at NNPC, said the project will extinguish significant volumes of flared gas in Nigeria “and open alleyways of new and greater exports of gas to Germany.’’
The German partners, the statement said, expressed confidence in investing in Nigeria’s gas sector.
Frank Otto, Chief Operating Officer of Johannes Schuetze Energy Import AG, described the partnership as a “big deal” for the German market.
Farouk Gumel, Chairman of Union Bank, emphasized the importance of rural inclusion and bringing more people into the formal economy.
President Tinubu said that Nigeria was well primed to attract foreign direct investments as it runs a resilient democracy,
”Since 1999, we have witnessed changes in democratic governance, with peaceful transfers of power within and between parties. Democracy in Nigeria has proven to be flexible and resilient. Shake off any remnants of the military era syndrome; we have moved beyond that. Despite challenges faced by other African nations, Nigeria stands firm, and we are your partners.’
”For those who feared various obstacles; look at me—I come from the private sector, trained by Deloitte. I served as the treasurer in ExxonMobil. Define corporate governance in any way, and I am in it. I governed Lagos for eight consecutive years.
”Nigerians voted for me for reforms, and from day one of my inauguration, I implemented the reforms. My inaugural speech did not disclose what I would do. I removed the fuel subsidy that is a great burden to Nigerians from the moment I stepped into office.
”The arbitrage regime is gone forever. Now, you can bring your money in and out as you wish. If you encounter any problems, rest assured that I have built one of the most reliable teams Nigeria has seen to address them. I appeal to you to forget the past and focus on building a relationship that removes obstacles, fostering progress and prosperity in Nigerian-German relations.’’