Tag: earns

The Nigeria Liquefied Natural Gas Limited (NLNG) has generated over $80 billion from its operation since inception in 1999, the Managing Director/Chief Executive, Mr. Babs Omotowa, has said.

Omotowa, who is also the Vice President, Bonny Gas Transport Limited, said the development of LNG through the construction of new LNG plants and expansion of the existing one, would not only add value to the economy, including job creation, but also generate more revenue for the Federal Government.

He urged the government to fast-track the construction and completion of LNG projects in view of LNG emerging projects and the increasing development of gas from shale, which may competitive.

To maximise benefits from its gas resource, the NLNG chief advised the government to expedite action on bringing into operation the Brass LNG, Olokola LNG and NLNG train 7, which has been waiting for final investment decision (FID) in the past few years.

“As a result of shale gas LNG importers are self-sufficient, becoming exporters and in competition. For instance, United States and Canada have approved six LNG projects worth 25 per cent of global demand. Proven shale gas reserves are 7,299 trillion cubic feet,” he said.

He noted that NLNG could create value in other sectors of the economy, especially in the power sector. He explained that in view of sabotage and pipeline vandalism resulting in inadequate gas supply for electricity generation, which is blamed for the power deficits, re-gasified liquefied natural gas (LNG) could be used as a bridge solution.

He said using pipeline beyond 1,000km for gas supply to power stations, is not viable, considering the security situation, hence the need to explore the use of LNG, which can be conveyed to these stations by sea through barges and by road, re-gasified and piped into the plants.

“Re-gasified LNG may be part of the solution in mid-term. It can also be used for industrial plants, thus reducing grid demand. Re-gasified LNG total cost to end-user may be 30 – 40 per cent cheaper than diesel even at $17 per million British thermal unit (mmbtu),” he added.

He also spoke of the need for partnership in the industry, adding that inclusion of fiscals and administration in the Petroleum Industry Bill (PIB) as well as competitive contract approval period, would power LNG projects.

to attract foreign direct investments (FDIs) in partnership with locals to further unlock potentials in the sector.

He said the Nigeria LNG accounts for four per cent of Nigeria’s GDP, generated $80billion revenue since 1999, has $13billion asset base, has 100 per cent Nigerian management team, has 97 per cent asset reliability, and is the world’s fourth largest LNG plant with 3000 LNG cargo delivered.