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NCDMB: ESSO’s $23m LADOL Shorebase Signals Logistics Rise

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NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

The Nigerian Content Development and Monitoring Board (NCDMB) has commended ESSO Nigeria for the groundbreaking of its $23 million permanent shorebase facility at the LADOL Deep Offshore Logistics Base.

The Board described the project as a strong signal of Nigeria’s growing status as a strategic hub for global oil and gas logistics.

The facility, valued at $23 million, will feature an administrative complex, warehouses, and storage infrastructure aimed at strengthening offshore operations and supply chain efficiency.

Speaking at the groundbreaking ceremony in Lagos, the Executive Secretary of NCDMB, Felix Omatsola Ogbe, congratulated ESSO Nigeria and LADOL, reaffirming the Board’s commitment to deepening local capacity in the upstream oil and gas value chain.

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Represented by his Senior Technical Adviser, Austin Uzoka, Ogbe praised LADOL’s consistency and long-term vision, noting that its evolution into a credible deep offshore base reflects years of strategic development.

He placed the project within the context of ongoing global supply chain disruptions, particularly those linked to geopolitical instability in the Middle East, which have driven up logistics costs across key markets.

According to him, LADOL’s expansion provides Nigeria with a viable alternative logistics hub, strengthening the country’s resilience. He likened the development to transformative projects such as the Dangote Refinery, noting that Nigeria’s supply chain capacity has significantly improved over the past decade.

Ogbe also urged ESSO Nigeria to adopt a front-end-loaded payment structure in its contracts with LADOL, stressing that improved cash flow would enable timely project delivery without reliance on high-interest bank loans.

He highlighted persistent liquidity challenges faced by local suppliers, often caused by delayed payments from operators, which continue to hinder project execution across the industry.

“Timely funding is critical. Front-loading payments will allow contractors to deliver efficiently without resorting to expensive financing,” he said.

He emphasised that robust supply chains are central to national development and assured continued collaboration between NCDMB, ESSO Nigeria, and LADOL to strengthen in-country capabilities.

Ogbe further described ESSO Nigeria as a disciplined operator, expressing confidence that the project would be delivered on schedule, while urging the company to maximise the use of Nigerian expertise throughout execution.

Earlier, the Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, said the project represents a significant milestone in ESSO Nigeria’s over 70-year partnership with the country.

He noted that the investment underscores the company’s commitment to enhancing Nigeria’s deepwater offshore operations.

Baxi added that the facility will be largely built by Nigerian firms, creating jobs and boosting local expertise in engineering, construction, and commissioning.

The event was attended by representatives of the Bank of Industry, management of LADOL led by Amy Jadesimi, as well as officials from the Nigeria Customs Service, Nigeria Immigration Service, and other government agencies.

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Decade of Gas: Ekpo Moves for Regional Gas Development, Collaboration To unlock Africa’s vast natural gas potential and address persistent energy deficits, Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has moved for stronger regional collaboration intracontinent. This is even as Nigeria keeps pushing for Integrated Gas Market, Cross-Border Projects at the Ministerial Roundtable on Regional Gas Development and Cooperation in Africa, held in Abuja. At the event which had participation from the World Bank, Ekpo stressed that Africa’s energy future hinges not on the abundance of its resources but on collective action and coordinated strategies. Addressing ministers, development partners, and stakeholders, the minister highlighted the paradox of Africa’s energy landscape, noting that while the continent holds over 600 trillion cubic feet of proven natural gas reserves, more than 600 million people still lack access to electricity, with millions relying on traditional fuels for cooking. “This is not a question of resource availability, but one of coordination, infrastructure, and collective action,” he said. Ekpo described natural gas as a critical pathway to Africa’s self-reliance, capable of driving industrialisation, expanding energy access, and strengthening economic resilience. However, he emphasised that no single country can unlock this potential alone, underscoring regional cooperation as the cornerstone of sustainable development. He noted that Nigeria, with over 210 trillion cubic feet of gas reserves, is advancing its “Decade of Gas” initiative to position itself as a regional hub through partnerships with other African nations. He cited key cross-border projects already demonstrating the benefits of collaboration, including the West African Gas Pipeline, Trans-Sahara Gas Pipeline, Nigeria–Equatorial Guinea Gas Pipeline, and the Nigeria–Morocco Gas Pipeline. To scale up impact across the continent, Ekpo outlined four priority areas for deepened cooperation. These include the development of regional gas supply and market frameworks, with a shift from fragmented national systems to integrated markets featuring transparent pricing, aggregated demand, and efficient cross-border trade. The Minister also emphasised the need to expand gas-to-power and clean cooking initiatives to ensure that gas development translates into tangible benefits such as reliable electricity and improved living standards for citizens. On financing, the minister called for innovative, climate-aligned funding models, including blended finance structures, increased private sector participation, and stronger collaboration with international partners like the World Bank. Ekpo further stressed the importance of harmonising policy and regulatory frameworks across countries to reduce investment risks and accelerate project delivery, pointing to Nigeria’s Petroleum Industry Act as a useful reference model. He described natural gas as Africa’s “transition fuel,” serving as a practical bridge for expanding energy access, supporting industrial growth, and lowering emissions intensity, while ensuring a just and inclusive energy transition. The minister urged that the Abuja roundtable should move beyond discussions to deliver concrete outcomes, including clearly defined areas of cooperation, identification of priority bankable cross-border projects, and the establishment of institutional mechanisms to drive implementation. Reaffirming Nigeria’s commitment, Ekpo said the country stands ready to collaborate, invest, and provide leadership where necessary in building an integrated African gas market. He concluded that aligning vision, coordinating actions, and committing to shared progress would enable Africa to transform from a continent of stranded gas resources into one of integrated energy prosperity. “The future of Africa’s energy lies not in isolated pipelines, but in connected systems, shared markets, and collective ambition,” he said.

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Energy

OPEC+ Retains Output at 30.9mbpd

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Nigeria’s crude oil production averaged 1.238m bpd in June – OPEC

In a confirmation of expectations that more policy adjustments will not occur until 2027, OPEC+ oil-producing countries have voted to keep December production targets steady.

The OPEC+ alliance, yesterday, agreed in principle to keep its combined December oil output targets unchanged at 30.9 million barrels per day (bpd), with Saudi Arabia’s individual target held at 10.5 million bpd.

The resolution was passed at a virtual meeting attended by seven core OPEC+ members- Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

This is as the group continues to struggle with export disruptions from the Middle East crisis, while Gulf members have been boosting exports that have been disrupted for months by the conflict, most are still pumping well below their targets.

OPEC+ comprises the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia. Only the seven members — plus the United Arab Emirates (UAE) until it quit OPEC in May — have been involved in monthly output decisions in recent years.

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All members of the 21-country group are due to meet on November 29, when it will decide 2027 quotas.

“Today’s decision was the easy one,” said Jorge Leon, an analyst at Rystad. “The much more important test comes at the November 29 ministerial meeting, when OPEC+ will decide its 2027 production framework.”

Oil prices jumped more than two per cent on Friday, with Brent crude settling at almost $118 a barrel, the highest since April, as traders braced for a potential escalation in the Iran war after the US midterm elections.

“OPEC+ faces an extremely difficult call for 2027,” Leon added. “The group has to plan around huge uncertainty over the US-Iran war, the pace of recovery through the Strait of Hormuz, and the size of the surplus that could emerge once disrupted barrels return.”

The seven members have been boosting output targets for much of 2026 and in September completed the phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. At earlier meetings, they kept the targets steady for October and November.

OPEC+ still has one more layer ⁠of production cuts of about two million bpd covering most members through the end of 2026.

The group needs to complete a review of members’ production capacity during the fourth quarter before setting the 2027 baselines that will determine future quotas ⁠and shape plans to unwind those cuts, sources have said.

The Iran war has disrupted projects to expand capacity across the Middle East, throwing estimates of future production potential into uncertainty, Reuters reported in October. As a result, the review is now expected to be completed by mid-November.

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Energy

U.S. to Tweak LNG Safety Rules for Foreign Markets

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With a view to accelerating infrastructure development and reducing operating costs, the U.S. Department of Transportation is contemplating a new set of safety regulations for liquefied natural gas facilities.

This is coming as American exporters prepare for another major expansion in global natural gas markets.

It was gathered that the proposal, issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA), would modernize federal LNG safety requirements by incorporating standards developed by the National Fire Protection Association.

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The changes are to address facility location, engineering, construction, operations, and maintenance, with greater flexibility to adopt newer technologies.

Transportation Secretary, Sean Duffy estimates that the updated framework could save LNG operators approximately $100 million annually while maintaining safety protections. The projected savings are an agency estimate, and the proposal has not yet become a final regulation.

The initiative comes as the United States strengthens its position as the world’s largest LNG exporter. American export capacity is expected to increase by approximately 100 million metric tons annually by the end of the decade, supported by projects already under development and additional planned investments.

Global LNG demand has also become more sensitive to geopolitical disruptions. Interruptions to Middle Eastern gas shipments associated with the conflict involving Iran have encouraged international buyers to evaluate alternative suppliers and diversify long-term procurement arrangements.

U.S. LNG developers have responded with additional investment commitments. Projects representing more than 50 million metric tons of annual capacity have reached final investment decisions since the beginning of 2025.

Major exporters, including Cheniere Energy and Venture Global, are pursuing additional development opportunities as federal policy places greater emphasis on expanding domestic energy infrastructure.

However, regulatory modernization does not eliminate the financial or operational challenges associated with LNG construction.

Developers must still secure the Federal Energy Regulatory Commission (FERC) approvals, complete environmental reviews, arrange financing, and address potential legal challenges. Pipeline connections, specialized equipment availability, construction costs, and long-term customer contracts also influence project schedules.

Delfin LNG, which is developing a floating export facility, illustrates the importance of infrastructure safety approvals. Its associated pipeline has not received publicly confirmed PHMSA clearance to resume operations following an explosion earlier this year.

Separately, FERC has proposed a streamlined authorization framework for certain modifications and expansions at existing LNG facilities, including activities that could qualify for automatic approval or shortened review periods.

For energy investors, the combined regulatory initiatives could improve development visibility and reduce some costs, although their financial impact will depend on final requirements and individual project circumstances.

Additional LNG export capacity could support demand for U.S. natural gas production, particularly from major producing regions connected to Gulf Coast terminals.

Midstream operators, engineering companies, compression equipment manufacturers, and construction contractors could also benefit from continued infrastructure investment.

At the same time, greater export demand may increase domestic natural gas price sensitivity to international markets, creating different implications for producers, utilities, and industrial consumers.

Investors will be monitoring the final PHMSA regulations, FERC permitting developments, LNG project financing decisions, and the pace at which proposed export capacity enters commercial service.

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Energy

NALPGAM Preaches Innovation, Safety to LPG Operators

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GAS: New Temile/Hyundai LPG Vessel to bring down high cost of cooking gas in Nigeria-NCDMB

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.

The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.

The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.

Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.

“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.

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A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.

Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.

They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.

Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.

“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.

The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.

Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.

Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.

The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.

Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.

The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.

According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.

Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.

“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.

The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.

The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.

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