Hungary plans to import crude oil and LNG from Nigeria

Created: Thursday, 30 November 2017 06:44

With the import of Nigerian crude oil and LNG, Hungary hopes to meet its domestic demand. (Image source: Thomas Hawk/Flickr)The Hungarian government has indicated interest to purchase crude oil and liquefied natural gas (LNG) from Nigeria

Gabor Ternak, the Hungarian ambassador to Nigeria, disclosed this during a courtesy call on Maikanti Baru, group managing director of Nigerian National Petroleum Corporation (NNPC). He said that the import of crude oil and LNG are expected to bridge the current supply gap in Hungary.

Being a non-oil producing country, Hungary has to import oil to meet its domestic energy needs. By purchasing crude oil and LNG from Nigeria, the country is planning to diversify its sources of these products, Ternak added.

According to him, the crude oil from Nigeria is expected to be a great help to Hungarian Refineries that are involved in large scale commercial refining.

Nigeria could also leverage on the bi-lateral relationship with Hungary by engaging the services of Hungarian firms specialised in repairs, maintenance and building of refineries and medical services. In addition, the Hungarian universities can also assist Nigeria in capacity building of oil workers by providing engineering expertise.

In his remarks, Maikanti Baru stated that NNPC commenced tendering process for the selection of the 2018 crude oil off-takers. He further noted that the Hungarian companies may participate in the exercise to maximise value from direct purchase, rather than going through a third party.

Baru explained that Hungary could purchase LNG through “spot cargo,” in which excess production is given to registered off-takers with the Nigerian Liquified Natuaral Gas Limited (LNNG). The Hungarian companies could submit their profile to NLNG for possible engagement as off-takers of spot-cargoes after meeting the standard requirements, he added.

He also mentioned that NNPC would look into potential areas of collaboration with the Hungarian Universities for in-country capacity building of oil and gas workers through its subsidiary institution, the Nigerian Leadership Academy (NLA).