Trouble Looms In Nigeria’s Gas Sector
The oil sector never seems to be able to get out of the woods.
While crude oil is getting some reprieve in the global oil market, the trouble is just getting started for Nigeria's gas.
The same oversupply that hit crude oil is creeping into the liquefied natural gas, LNG sector.
The development may have spiral effect on Nigeria, according to analysts.
They predict that the global glut may start to dwindle in five years, threatening to spur a deficit equivalent to twice the output of leading producer, Qatar.
Also Read: Nigeria To Deliver Gas By Road
Research reports show that new projects are needed to fill the shortfall, with demand for the super-chilled fuel forecast to double in the 20 years to 2035, Cedigaz, a Paris-based industry research group, said in its LNG Outlook.
Buyers in Asia are boosting use of the fuel at a “staggering” pace, Jack Fusco, chief executive officer of US exporter Cheniere Energy Inc., said in a Bloomberg Television interview.
According to Bloomberg, while plants currently in operation or being built will add to global oversupply, aging facilities and shrinking resources in some areas mean capacity will start declining after 2021.