Successfully financing sustainable LNG growth in changing global markets: Lessons from Nigeria

摘要

Forecast to grow at seven per cent per annum, world LNG trade has proved to be the 'vectorof growth' for the natural gas market. Not only have demand and prices shot up, the numberof projects and the investment required to meet growing demand have gone the same way -up. If the loaded pipeline of LNG projects on the drawing board is anything to go by, the futurelooks bright. The projects would require billions of dollars to bring to production.Without finance, the growth trend currently witnessed in the LNG trade and anticipated tocontinue would be unsustainable. True, 'the world runs on energy and energy runs onfinance'. So, where does the money come from, given the rapid changes in global financialand oil and gas markets?The paper discusses the contemporary trends in global markets and shares learning pointsfrom successful financing deals which have helped the growth of Nigeria LNG's Bonny Islandplant. Already Africa's largest single industrial site, the Bonny Island plant is among theworld's fastest growing. Nigeria LNG's shipping subsidiary, BGT, has one of the largestdedicated fleet of LNG vessels. How were these feats achieved within a decade and how isfinancing part of the growth strategy of the future? How robust are third-party financingoptions amid the global equity and debt market turmoil triggered by the summer 2007 US subprimemortgage crisis?The paper sets out success templates for LNG and related business, seeking to accessglobal finance for their projects.? World Petroleum Council. This document forms part of the 19th WPC Proceedings and is issued under licence. This file must not be reproduced by any means, or transmittedor translated into a machine language without the written permission of the copyright holder. Published by the Energy Institute.