Hungary Seeks To Bridge Supply Gap With Nigeria’s Crude Oil, LNG

Hungary Seeks To Bridge Supply Gap With Nigeria’s Crude Oil, LNG


Post Views: 884 At a time that international crude oil market is getting more competitive, the Hungarian Government says it is interested in crude oil...

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At a time that international crude oil market is getting more competitive, the Hungarian Government says it is interested in crude oil and Liquefied Natural Gas (LNG) from Nigeria as it seeks to bridge the current supply gap in the country.
Hungarian Ambassador to Nigeria, Professor Gabor Ternak, who disclosed this during a courtesy call on the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, on Tuesday in Abuja, said “Hungary depends on oil importation to serve its energy needs as the country is non-oil producing. We want to diversify our sources of crude oil and LNG import and we are considering purchasing these products from Nigeria.”
The Nigerian crude oil, he continued, would be of great help to Hungarian Refineries involved in large scale commercial refining, adding that Nigeria could also leverage on the bi-lateral relationship with his country to engage the services of Hungarian firms specialized in repairs, maintenance and building of refineries, as well as medical services.
He added that Hungarian universities with many years of oil and gas engineering expertise, could assist Nigeria in the areas of capacity building of oil workers.
Responding, according to a statement by Ndu Ughamadu, spokesman of the corporation, GMD, Dr. Maikanti Baru, said the Corporation had commenced tendering process for the selection of the 2018 crude oil off-takers, adding that Hungarian companies could utilize the opportunity by participating in the exercise to maximize value from direct purchase, rather than going through a third party.
“If you don’t participate in the tendering process, you would have to buy the products from one of the traders. However, if you participate with companies and refineries that meet our requirements, they could be shortlisted as off-takers,” he averred.
He explained that Hungary could purchase LNG through “spot cargo,” an arrangement in which excess production is given to registered off-takers with the Nigerian Liquefied Natural Gas Limited (LNNG).
“Normally, gas business is a long term business and NLNG is not different, we already have existing 20-year contracts that will expire by 2022. Nevertheless, we have what is called “spot cargoes”, when there is excess production, and the current contractors have gotten there share as enshrined in the contract, the excess production will be given to registered off-takers in the system,” Baru stressed.
He said Hungarian companies could submit their profile to NLNG for possible engagement as off-takers of spot-cargoes after meeting the standard requirements.
The NNPC GMD stated that works on refurbishment of its refineries through original builders of the plants had commenced and that the Hungarian firms with requisite expertise could be considered through subcontracting by the main contractors. He said that NNPC through its subsidiary institution, the Nigerian Leadership Academy (NLA), would look into possible areas of collaboration with the Hungarian Universities for in-country capacity building of oil and gas workers.
As part of the corporation’s diversification plans, Baru said the NNPC, which has the largest medical facilities in the country from a single entity, was trying to put its 52 clinics across the country into commercial use, starting with its clinic in Abuja.
He said NNPC would collaborate with Hungarian and other reputable companies that have proven capabilities to set-up world-class medical facilities for heart, spinal and brain surgeries as well as physiotherapy and specialized laboratories services that can compete globally and save Nigerians the burden of traveling abroad for treatment.