The OKLNG project offers investors a robust return on investment and continually reviews its contracting strategy and technical design with a view to minimising costs and maximising return on investment.
Whilst return is based upon capital cost, international LNG price, upstream gas price and fiscal conditions, OKLNG offers investors a capital cost that is below the industry benchmark despite the rapidly escalating LNG and upstream costs. OKLNG provides investors with both economic and strategic value. It has a staged development strategy that minimizes near-term funding. The project has access to deep water which also reduces the costs of developing port facilities for loading LNG vessels.
The proximity of the project to gas supply means that gas can be supplied to the plant at a relatively low cost and in a secure manner.
Due to the favourable soil conditions of the site as compared to other coastal locations in Nigeria, the project’s LNG plant benefits from lower construction costs as well as easily accessible deep water that reduces the costs of port facilities for loading LNG vessels.
The chosen site additionally provides a significant strategic advantage of the possibility of using very large carriers for LNG sales in the new target markets in Asia.
Utilising the well-established APCI technology, the plant includes facilities which provides greater efficiency and improved economics of condensate processing; this eliminates the HSSE risks associated with the condensate plants in the field, such as pollution from leakages, explosion hazards and illegal bunkering.