Nigeria Has a Chance To Increase Its Revenue as a Result of China’s Decision To Stop Selling LNG To Europe.
On October 17, Bloomberg reported that China had instructed its state-owned natural gas importers, including Sinopec and the China National Offshore Oil Corporation (CNOOC), to stop selling liquefied natural gas (LNG) to Europe.
China aims to safeguard its domestic gas supplies in advance of the winter season. Nigeria will, however, earn more money by selling the excess LNG produced by Nigeria Liquefied Natural Gas (NLNG) Limited; now that China has decided to discontinue exporting to the EU.
NLNG has up to 20% spare volumes that can be committed to the spot market; Oluwadare continued, even though up to 80% of its volumes can be committed to long-term contracts.
The spot pricing used to sell these extra LNG cargoes will be established by demand, supply and environmental factors.