Nigeria LNG to restart fifth unit in July after shutdown

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Nigeria Liquefied Natural Gas’ (LNG) fifth production unit, or train, is set to resume production in July after it shut down for maintenance on May 25, the has company said in a statement.

“The Train 5 Turn Around Maintenance (TAM) affects output from this train only. Operations on other trains are continuing as normal”, Andy Odeh corporate communications and public affairs manager at NLNG said.

Exports from Nigeria LNG slumped to 193 million cubic metres (mcm) of gas in the first week of June from 449 mcm a week earlier, though exports rebounded in the following weeks, shipping data on Thomson Reuters Eikon shows.

NLNG can produce 22 million tonnes of LNG a year and has long-term supply contracts with Italy’s Enel, Shell, France’s Engie and Portugal’s Galp, among others. It also sells on the spot market.

In another development, differentials for Nigerian and Angolan crudes hovered unchanged on Wednesday, as a series of tenders kept buyers at bay.

At least four tenders have been ongoing this week – from Taiwan and Thailand to India and South Africa – that have dampened activity in the market.

Traders ringfence cargoes they want to offer in tender processes, meaning liquidity in the spot market drops and there are fewer barrels available for sale, which in turn, deters buyers.

Nigerian crudes particularly found increasing competition from U.S. light sweet grades and this week has been no exception. Traders said Thai refiner PTT and Taiwan’s CPC were both believed to have taken U.S. crude as part of their most recent purchases.

The latest U.S. government data showed U.S. crude exports shot to a record three million barrels per day (bpd) in the latest week.

The August programme for the Usan grade, which averaged around 82,000 bpd in supply in the first half of the year, had still not emerged, traders said, and force majeure remained in place on exports of Bonny Light.

Between 12 and 15 July-loading cargoes of Nigerian crude were still thought to be available for sale, unchanged from the previous day, traders said.


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