Brass LNG FID Soon

Final Investment Decision (FID), for the Brass LNG project would be taken in the next couple of months, Chairman, Brass Liquefied Natural Gas, LNG, Limited, Jackson Gaius-Obaseki, said earlier this week.

Speaking at the 11th AGM of the company in Abuja, Gaius-Obaseki said the company was able to successfully achieve cost optimisation, reported local newspaper Vanguard, adding that this was attained through the renegotiation of contract rates, commercial terms, scope of works and reclassification of contracts and purchase orders from dollars to naira denominations in compliance with the Central Bank of Nigeria, CBN's directive.

He insisted that the Brass LNG project was still very feasible and on course, despite the low price of crude oil in the international market.

“We are not oblivious of the price collapse in the crude oil market, which must have caused concerns about the project viability and ability of the shareholders to execute same. In the light of this, management has taken steps to review the project concept with a view to drastically reviewing the capital expenditure, CAPEX,” Vanguard quoted Gaius-Obaseki as saying.

Brass LNG project is designed to produce 10 million metric tons of LNG per year. Major shareholder is Nigerian National Petroleum Corporation (NNPC). Other partners are ENI of Italy and Total of France. However, late last year Total served other shareholders a notice of planned withdrawal.