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In Fairness To NLNG

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5 years ago

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Sometime in the late 1990s when the initial construction phases of the liquefied natural gas (LNG) plant on Bonny Island were still ongoing, the Nigeria LNG Limited (NLNG) arranged for a delegation of some prominent Bonny indigenes to visit a similar LNG project jointly financed by Petronas (Malaysia’s national oil company), Shell and Mitsubishi in 1978 and which was already operational on the Malaysian Island of Bintulu.
My uncle and the then Secretary of Jumbo Major House of Bonny, Warisenibo Henderson Jumbo, was on that delegation. I remember publishing a full-page interview which I had with him regarding the trip back then. He was, indeed, the first person on that trip to publicly hint at the size and potentials of what was coming to Grand Bonny Kingdom.
The smooth, safe and peaceful relocation of the entire Finima community had already been concluded then, thanks to the negotiating skills of Chief Israel Idamiebi-Brown during the series of negotiations in London and elsewhere. For displaying stunning adroitness, he was often lifted shoulder high by his jubilant kinsmen on returning from some of those conferences. The legal luminary and former Rivers State Attorney-General and Commissioner of Justice may also have been on the Bintulu facility tour.
New Finima, as it was then called, was next to pure heaven. In fact, early visitors to the place may have turned green with envy on seeing the alluring design and pattern of new residences and the fact that some of the natives who had just been evacuated from mostly congested, leaking huts and dilapidated block houses were now proud owners of out-spaced modern homes, paved roads and recreational grounds, among other social amenities.
In those days, transportation from Bonny main town to Finima and back was free as there was literally an ubiquity of brand new airconditioned Toyota Coaster buses running an almost 18-hour service daily. Indeed, I can recall making about three sightseeing trips on a particular day from Bonny to the new settlement while still seated in the same bus, free of charge. Some there were who made more of such trips daily, almost converting it to a regular pastime.
For me, that period was quite epochal as it marked the beginning of the trust and sincerity of purpose between NLNG and Grand Bonny Kingdom which, from all indications, have endured to this day.
At the peak of construction work on the NLNG base project, it is on record that TSKJ and its numerous subcontractors engaged about 18,000 workers. And their presence mounted enormous pressure on the then available social infrastructure in Bonny and its hinter communities. For instance, house rent took an astronomical rise with as many as 10 persons sharing a room where available. Those who could not afford it made do with the corridors and open football fields of the primary schools in town.
For those who do not know or who may have forgotten so soon, TSKJ was an acronym for the special purpose vehicle (SPV) that delivered the US$1.8 billion LNG facility on Bonny Island. While it existed, the name stood for Technip, Snamprogetti, Kellogg and JGC (Japan Gasoline Company). It was a joint effort between some of the best engineering, procurement and construction (EPC) firms in the world.
Prior to the arrival of NLNG, Bonny people had borne the brunt of Shell’s gas flare and oil export activities, particularly noise from the ceaseless landing and take-off of helicopters. The Island hosts Nigeria’s first and largest crude oil export terminal built and operated by Shell. Tank Farm, as the locals call it, accounts for 35% of the nation’s petroleum exports and was an important target for both federal and rebel forces during the Nigerian Civil War in the late 1960s.
It was, therefore, gladdening to notice that the arrival of NLNG practically upped the ante for Bonny. Schools and pupils in the Kingdom have continued to enjoy donations of desks and textbooks. The gas firm, working in alliance with Shell and ExxonMobil, has since floated a Joint Industries Committee (JIC) to oversee internal road construction and repairs, electricity generation and distribution, and water supply and reticulation, particularly on the mainland.
The LNG firm has also joined in the provision of cargo boats to enhance transportation between Port Harcourt and Bonny. Its multi-million naira micro-credit facility to cooperatives in the Kingdom and elsewhere has been quite commendable. What’s more, the company has since 2004 instituted the NLNG Grand Award Night during which it honours and publicly rewards outstanding accomplishments in Arts and Science from across the country.
Except for the new airport project on the ancient Island, by far the biggest intervention of any oil and gas firm in the life of the Ibanis is the ongoing construction of a N120.6 billion road project from Bodo to Bonny. Not only will it make for an easy connection to the rest of Nigeria, it also has the potential of bringing down the high cost of living on the Island. Already, it has created employment for previously jobless Bonny and other Rivers youths.
Originally planned as a joint project to be funded on equal basis by the federal government and NLNG, work on the 37.9 kilometre road would have been stalled had the latter not acted in good time. Whereas the gas company had since laid out its counterpart fund and with which construction work began, the government had not been forthcoming with its own obligation. It is highly commendable that NLNG has opted to fully finance the project and deduct the extra cost from its tax remittances to the government.
Bintulu had barely operated for 20 years at the time the Bonny delegation arrived. The visiting Ibanis were obviously encouraged by what was on the ground over there. Question is: after more than 20 years of operation with almost 10 times additional investment, can the NLNG facility in Bonny provide the same inspiration to other upcoming LNG projects elsewhere around the world? Methinks the answer is an emphatic yes.

 

By: Ibelema Jumbo

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Renewable Energy Faces Looming Workforce Crisis

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3 weeks ago

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August 18, 2025

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Despite a discouraging political climate and unprecedented uncertainty in the United States clean energy sector, low costs of wind and solar energy continue to drive growth of the domestic clean energy sector.
However, while market forces continue to support the expansion of renewable energy capacity, the sector faces critical challenges extending beyond the antagonism of the Trump administration.
The continued growth of solar and wind power risks being hampered by several mitigating factors, including (but not limited to) intensifying competition over increasingly scarce suitable land plots, stressed and volatile global supply chains, lengthy and unpredictable development processes, Complex and overlapping permitting processes, and a critical talent gap.
The renewable energy labor shortage has been years in the making, but is no less closer to resolution. The issue spans both white collar and blue collar positions, and threatens to kneecap progress in the booming sector.
Between the years of 2011 and 2030, it is expected that global levels of installed wind and solar capacity will quadruple. Analysis from McKinsey & Company concludes that “this huge surge in new wind and solar installations will be almost impossible to staff with qualified development and construction employees as well as operations and maintenance workers.
“It’s unclear where these employees will come from in the future,” the McKinsey report goes on to say.
He continued that “There are too few people with specialized and relevant expertise and experience, and too many of them are departing for other companies or other industries.”
The solar and wind industries are suffering from a lack of awareness of career paths and opportunities, despite their well-established presence in domestic markets.
Emergent clean energies face an even steeper uphill battle. Geothermal energy, for example, is poised for explosive growth as one of vanishingly few carbon-free energy solutions with broad bipartisan support, but faces a severe talent gap and punishingly low levels of awareness in potential talent pools.
But while the outlook is discouraging, industry insiders argue that it’s too soon to sound the alarms. In fact, a recent report from Utility Drive contends that “solutions to the energy talent gap are hiding in plain sight.”
The article breaks down those solutions into four concrete approaches: building partnerships with educators, formulating Registered Apprenticeship pathways, updating credential requirements to reflect real-world needs, and rethinking stale recruitment strategies.
Targeting strategic alliances with educational institutions is a crucial strategy for creating a skilled workforce, particularly in emerging sectors like geothermal energy.
Businesses can, for example, partner with and sponsor programs at community colleges, creating a pipeline for the next generation of skilled workers. Apprenticeships serve a similar purpose, encouraging hands-on learning outside of the classroom. Such apprenticeships can apply to white collar positions as well as blue collar roles.
“If we can figure out a way to educate the younger generation that you can actually have a career that you can be proud of and help solve a problem the world is facing, but also work in the extractive industry, I think that could go a long way,” said Jeanine Vany, executive vice president of corporate affairs for Canadian geothermal firm Eavor, speaking about the geothermal energy talent gap.
These approaches won’t solve the talent gap overnight – especially as political developments may discourage would-be jobseekers from placing their bets on a career in the renewables sector. But they will go a long way toward mitigating the issue.
“The clean energy transition depends on a workforce that can sustain it,” reports Utility Drive. “To meet the hiring challenges, employers will benefit from looking beyond the next position to fill and working toward a strategic, industry-wide vision for attracting talent.”
By: Haley Zaremba
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Is It End For Lithium’s Reign As Battery King?

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1 month ago

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August 1, 2025

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Lithium-ion batteries power the world around us. Their prevalence in our daily life is growing steadily, to the extent that lithium-ion batteries now power a whopping 70 percent of all rechargeable devices.
From electric vehicles to smartphones to utility-scale energy storage, lithium-ion batteries are increasingly forming the building blocks of innumerable sectors.
But despite its dominance in battery technologies, there are some serious issues with lithium supply chains that make it a less-than-ideal model upon which to base our world.
Not only is extracting lithium often extremely environmentally damaging, it’s deeply intertwined with geopolitical pressure points. China controls a huge portion of global lithium supply chains, rendering markets highly vulnerable to shocks and the political will of Beijing.
China’s control is particularly strong in the case of electric vehicle batteries, thanks to a decade-long strategy to outcompete the globe.
“For over a decade, China has meticulously orchestrated a strategic ascent in the global electric vehicle (EV) batteries market, culminating in a dominance that now presents a formidable challenge to Western manufacturers,” reports EE Times.
The effect functions as “almost a moat” around Chinese battery production, buffering the sector against international competition.
The multiple downsides and risks associated with lithium and lithium-ion battery sourcing is pushing EV companies to research alternative battery models to power the electric cars of the future.
There are a litany of lithium alternatives in research and development phases, including – but not limited to – lead, nickel-cadmium, nickel-metal hydride, sodium nickel chloride, lithium metal polymer, sodium-ion, lithium-sulfur, and solid state batteries.
Solid state batteries seem to be the biggest industry darling. Solid-state batteries use a solid electrolyte as a barrier and conductor between the cathode and anode.
These batteries don’t necessarily do away with lithium, but they can eliminate the need for graphite – another critical mineral under heavy Chinese control. Plus, solid state batteries are purported to be safer, have higher energy density, and recharge faster than lithium-ion batteries.
While solid-state batteries are still in development, they’re already being tested in some applications by car companies. Mercedes and BMW claim that they are already road-testing vehicles powered by solid-state batteries, but it will likely be years before we see them in any commercial context.
Subaru is on the verge of testing solid-state batteries within its vehicles, but is already employing a smaller form of the technology to power robots within its facilities.
However, while solid-state batteries are being hailed as a sort of holy grail for battery tech, some think that the promise – and progress – of solid-state batteries is overblown.
“I think there’s a lot of noise in solid state around commercial readiness that’s maybe an exaggeration of reality”, Rivian CEO RJ Scaringe said during an interview on this week’s Plugged-In Podcast.
Sodium ion batteries are also a promising contender to overtake lithium-ion batteries in the EV sector. Sodium is 1,000 times more abundant than lithium.
“It’s widely available around the world, meaning it’s cheaper to source, and less water-intensive to extract”, stated James Quinn, the CEO of U.K.-based Faradion. “It takes 682 times more water to extract one tonne of lithium versus one tonne of sodium.That is a significant amount.”
Bloomberg projections indicate that sodium-ion could displace 272,000 tons of lithium demand as soon as 2035.
But even this does not signal the death of lithium. Lithium is simply too useful in battery-making. It’s energy-dense and performs well in cold weather, making it “indispensable for high-performance applications” according to EV World.
“The future isn’t lithium or sodium—it’s both, deployed strategically across sectors…the result is a diversified, resilient battery economy.”
By: Haley Zaremba
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Why Oil Prices Could See Significant Upside Shift

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1 month ago

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July 28, 2025

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The 9th OPEC International Seminar was held in Vienna recently, wherein participants discussed energy security, investment, climate change, and energy poverty, with a particular emphasis on balancing these competing priorities.
According to commodity analysts at Standard Chartered, the summit, titled “Charting Pathways Together: The Future of Global Energy”, featured significantly greater engagement from international oil companies and consuming country governments, with discussions converging on a more inclusive shared agenda rather than non-intersecting approaches seen in previous years.
However, StanChart reported there was a clear mismatch between what energy producers vs. market analysts think about spare production capacity.
Unlike Wall Street analysts, who frequently talk about spare capacity of 5-6 million barrels per day (mb/d), speakers from several sectors of the industry noted that spare capacity is both limited and very geographically concentrated.
StanChart believes this erroneous assumption about spare capacity has been a big drag on oil prices, and the implications for the whole forward curve of oil prices could be potentially profound once traders realize that roughly two-thirds of the capacity they thought was available on demand does not actually exist.
This makes the analysts bullish about the general shape of their forecast 2026 price trajectory (Figure 32), i.e., a set of significant upward shifts as opposed to the flat trajectory seen in the market curve and in analyst consensus.
In other words, oil prices could have as much as $15/barrel upside from current levels.
StanChart is not the only oil bull here. Goldman Sachs recently hiked its oil price forecast for H2 2025, saying the market is increasingly shifting its focus from recession fears to potential supply disruptions, low spare capacity, lower oil inventories, especially among OECD countries and production constraints by Russia.
GS has increased its Brent forecast by $5/bbl to $66/bbl, and by $6 for WTI crude to $63/bbl, slightly lower than current levels of $68.34/bbl and 66.24/bbl for Brent and WTI crude, respectively.
However, the Wall Street bank has maintained its 2026 price forecast at $56/bbl for Brent and $52 for WTI, due to “an offset between a boost from higher long-dated prices and a hit from a wider 1.7M bbl/day surplus.’’ Previously, GS had forecast a 1.5M bbl/day surplus for the coming year.
Further, Goldman sees a stronger oil price rebound beyond 2026 due to reduced spare capacity.
EU natural gas inventories have climbed at faster-than-average clip in recent times. According to Gas Infrastructure Europe (GIE) data, Europe’s gas inventories stood at 73.10 billion cubic metres (bcm) on 13 July, good for a 2.31 bcm w/w increase.
Still, the injection rate is not enough to completely fill the continent’s gas stores, with the current clip on track to take inventories to about 97.9 bcm, or 84.3% of storage capacity, at the end of the injection season.
Europe’s gas demand remains fairly lacklustre despite extremely high temperatures across much of the continent in recent weeks.
According to estimates by StanChart, EU gas demand for the first 14 days of July averaged 583 million cubic meters/day, nearly 3% lower from a year ago but a 10% improvement from the June lows.
However, StanChart is bullish on natural gas prices, saying the market is likely underestimating the likelihood of more Russian gas being taken off the markets.
Back in April, U.S. senators Lindsey Graham (Republican) and Richard Blumenthal (Democrat), introduced “Sanctioning Russia Act of 2025”, with the legislation enjoying broad bipartisan support (85 co-sponsors in the Senate out of 100 senators).
In a joint statement on 14 July, the two senators noted that President Trump’s decision to implement 100% secondary tariffs on countries that buy Russian oil and gas if a peace agreement is not reached within 50 days but pledged that they will continue to work on “bipartisan Russia sanctions legislation that would implement up to 500 percent tariffs on countries that buy Russian oil and gas”.
StanChart has predicted that the Trump administration is unlikely to take actions that risk driving oil prices higher. However, Russian gas remains in the crosshairs, with U.S. LNG likely to see a surge in demand if Russian gas exports are curtailed.
StanChart estimates that the EU’s net imports of Russian pipeline gas averaged 79.8 million cubic metres per day (mcm/d) in the first 14 days of July, with all non-transit flows into the EU coming into Bulgaria through the Turkstream pipeline, with Hungary and Slovakia also receiving Turkstream gas.
There was also a flow of about 65 mcm/d of Russian LNG in the first half of July, with Russia providing 18.6% of the EU’s net imports. StanChart has predicted that we could see a strong rally in natural gas prices if Washington slaps Moscow with fresh gas sanctions.
By: Alex Kimani
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