The Nation Newspaper

Tag: NLNG

  • The NLNG paradigm

    The NLNG paradigm

    • Why doesn’t NNPC adopt the NLNG model for refinery and petrochemical complexes?

    It came with so many flaws, including nearly a decade-long delay; monumental graft, notably the bribery- for- contract scam by Halliburton and finally a not-too-transparent modus operandi. But regardless of all these, the Nigeria Liquefied Natural Gas (NLNG) project is probably the biggest thing happening to Nigeria and her oil industry today. It is by far her most ambitious and most successful project.

    The NLNG platform on the Bonny Island offshore from Rivers State was in the news recently when it marked its 3000th LNG export cargo milestone. According to its elated managing director and chief executive officer, Mr. Babs Omotowa, Nigeria has earned over $50 billion from the export of liquefied natural gas in the last 15 years. This huge earning, according to Omotowa, grew from a meagre investment of about $2.5 billion at inception in 1999.

    The NLNG is a star project of the joint venture between the Federal Government as represented by the Nigerian National Petroleum Corporation (NNPC) and international oil companies. Nigeria owns about 49 per cent equity while firms like Shell, Chevron and Agip own majority shares. The NLNG, which is developed in trains is now at its sixth. The seventh train is in the making and upon completion, NLNG will control 10 per cent of the world’s liquefied natural gas market.

    It is the single largest oil and gas project since oil production started in Nigeria over 50 years ago (perhaps only to be matched by Shell’s Bonga) and NNPC’s assets in the project have grown to $14 billion over 15 years. Nigeria has earned about $13 billion in dividends and another $11 billion earned in the sales of feed gas while more than $10 billion has been injected into the Nigerian economy by way of goods, services and emoluments to thousands of staff. NLNG has also been rated among the companies that have adopted best practices in social responsibility to its communities and corporate governance in managing its affairs.

    This is especially so after it rose from the ashes of a macabre scandal involving its contractors and Nigerian government officials which spanned various regimes. With the culprits convicted and punished in the United States, NLNG introduced fresh set of strict ethical conducts in all its transactions at all levels and benchmarked against the best corporate governance practices in the world.

    Though the earnings over 15 years may seem meagre considering the magnitude of the project, the bigger gains lie in providing quality jobs and affording world-class training to thousands of Nigerian youths, especially its technical staff. NLNG’s corporate social responsibility (CSR) activities span almost all spheres of life but most notable is providing free electricity to its immediate communities of Bonny and Finima. The NLNG Annual Award for Science and Literature for Nigerians is among the most rewarding and most prestigious in the world today. But most important of all is that the NLNG has been able to reduce gas flaring in Nigeria by some fraction. It has been able to put into lucrative use, gas that otherwise would have been flared. Nigeria is second only to Russia in gas flaring in the world and she is said to lose aboutN286.24 billion to it.

    We wager that if the NNPC had adopted the NLNG template for the development of Nigeria’s refineries and petrochemical projects, the country would not only have been a major exporter of petroleum products but it would have long overgrown her perennial fuel and energy crises that still continue to dog her. The country would have also developed ancillary industries in the oil and gas sector as well as deepened her local content, technical and technological expertise. The NLNG is a success story and we applaud it as it celebrates this milestone. It remains an oasis in an ocean of rot and despondency.

     

  • NLNG votes N2b for six varsities

    NLNG votes N2b for six varsities

    The Managing Director of Nigeria LNG (NLNG), Babs Omotowa, said yesterday that the company has earmarked N2 billion for the development of engineering education in six universities.

    They are University of Ibadan (U.I.), University of Ilorin (UNILORIN), University of Port-Harcourt (UNIPORT), University of Maiduguri (UNIMAID), Ahmadu Bello University (ABU), University of Nigeria, Nsukka (UNN).

    The project is titled: NLNG University Support Programme (USP).

    Omotowa said the company will spend N340 million in each of the schools on the construction of modern engineering laboratories equipped with the cutting-edge equipment.

    Speaking with reporters in Abuja, he said: “No Nigerian university is ranked amongst the 500 best universities in the world today; neither is our ranking amongst African universities’ impressive.

    “Predictions about Nigeria’s ascent as a developed country will only come true, if and when we take firm steps to fix our educational system. Well-meaning stakeholders need to urgently join hands to improve the quality of education in the country for the future of Nigeria to be better. This is why Nigeria LNG, committed to helping build a better Nigeria, is initiating the N2 billion NLNG University Support Programme to bring engineering education up to speed with world class standard.

    “NLNG’s corporate social responsibility covers education, healthcare, infrastructure, enterprise and capacity development across the country.”

  • Bonny on my mind

    Bonny on my mind

    Pablo Picasso once said: “Everything you can imagine is real.” His thinking obviously tallies with those of men of God, who always tell their followers to dare to dream. They say whatever eventually come to being first took form in the spiritual realm. Today, I join my faith with them for the good people of Bonny Island and I imagine that apart from the huge money the federal and state governments make from the area from taxes and dividends, the people are also rich, rich in knowledge, rich in cash and rich in every other area of human endeavour.

    Bonny deserves the best, its people deserve all the good things of life. If the richness of their land is anything to go by, Bonny should have no business with poverty. But my imagination apart, Bonny needs help.

    I returned to Bonny for the fourth time this week. The last time I was there was some months ago. There was no marked difference in the Bonny to which I returned. It still takes some three hours to access it by water. Its soils are still swarmed by resources that bring money, but can’t bring money unless technology beyond the reach of the people is deployed.

    To the best of my knowledge, Bonny has no rival in the Niger Delta. It hosts the country’s only port of origin, where liquefied gas is transported to different parts of the world. One of the three major companies operating on its soil, the Nigeria Liquefied Natural Gas (NLNG) Limited has paid dividends of no less than $9 billion to the Federal Government since it began operation some years ago. The others, such as Shell ( which has a huge crude oil export terminal known as the Bonny crude oil terminal – the largest of its kind in Africa), have also paid several billions from what they have earned operating there. To say the least, the Island is a cash cow for the government.

    Its people, as it was from my first contact with them, still enjoy uninterrupted power supply at little or no cost courtesy of the NLNG.

    From my checks, some indigenes are beneficiaries of scholarship schemes from NLNG and the likes. Many also work in lucrative sectors of the economy on the basis of being from the rich Island.

    The Bonny, to which I returned, however, still needs help. Its traditional ruler, the Amayanabo of Grand Bonny Kingdom, King Edward Dappa Pepple 111, has championed the cause of the people. But there is a limit to what he can do.

    Bonny has not found a way around its education problem. Facts supplied by a World Bank consultant show how bad the situation is. The teachers in Bonny’s primary schools are inadequate. Core subject areas, such as English Language, Mathematics and the Sciences, lack enough hands to handle them. The 21 public primary schools in Bonny Local Government Area have no less than 5,000 pupils with only 139 teachers to teach them, giving a teacher-pupil ratio of 1:44 as against the stipulated ratio of 1:35.

    The secondary schools, based on the statistics supplied by this consultant, are no better staffed. Its four public junior and four public senior secondary schools are suffering. The junior secondary schools, according to the consultant, have 1,949 students and are taught by 27 teachers. The senior secondary schools have 1,896 students and are taught by 71 teachers, with no Mathematics, English Language or Science teachers. The statistics were given last year, but as I understand, things have not changed.

    With such situation, it is no wonder that there is poor performance in terminal examinations. In the last decade, the oldest school in the Island has recorded only 12 per cent pass with five credits in WAEC. What this means is that the students are not equipped to do anything. They are also unable to get into any other system that can enable them acquire skills, as such lost to their families in terms of income generation and also lost to the society in terms of meaningful contributions.

    There are a lot of idle hands around. In some other areas, they could have taken to agriculture. But Bonny does not strike me as a place where agriculture will thrive. The access to the area is not even conducive for making money out of agriculture. Places that have made stride with agriculture have easy access to the market. For the people of Bonny, Port Harcourt, which could have been a good market, is hours away by water. And how much will they gain if they use helicopter or chopper to transport their produce? How much can an helicopter carry anyway? How much of the land is even suitable for agriculture, with oil spillage and all the environmental challenges of oil exploration?

    A idle hand, they say, is a devil’s workshop. So, illegal bunkering and other vices become the only available alternatives.

    There is thus the urgent need for sustainable skills acquisition for the unskilled. This will help check vices and steer them away from unleashing disastrous consequences on the society. With the right help to develop its land and people, the threats will be mitigated. Without that, there is fire on the mountain, especially when not a few of the youths feel the country’s leaders have continued to look the other way while their rights are infringed upon. They feel the issue of local content has been flawed because government has demonstrated lack of political will to tackle the matter.

    Things have to change. There is still a long road to travel to steer the Island to the shores of development and prosperity. The community, I believe, must seek new partners to work with existing ones for its development in the areas of human capital and so on.

    The light, which Shell, Mobil and NLNG saw in Bonny and made them like the place, must shine well in the people’s life. The people were happy that the companies came. They had good times at the peak of the construction of the companies. That is why an initiative by the NLNG to turn the Island around over the next few years should be followed through and supported. Bonny must be supported; otherwise the rich Island will become a living hell for all. There is fire on the mountain. Thank God NLNG is running!

     

  • 2013: NLNG blames NIMASA for failure to meet target

    The Nigeria Liquefied Natural Gas Limited (NLNG) has blamed its inability to meet its target of 325-cargo shipments last year on its feud with the Nigerian Maritime Administration and Safety Agency (NIMASA).

    During the dispute, which arose from the alleged non-payment of levy by NLNG, NIMASA bloked the firm’s channel in Bonny, Rivers State, stopping it from exporting 45 cargoes of gas.

    NLNG’s Head, Gas supply Emmanuel Nnabuife said the blockade affected business, promising to make up for it this year.

    The firm, he said, would meet the 325-cargo target this year, barring any unforeseen hitch, noting that despite last year’s problem, NLNG paid $140 million levy to NIMASA.

    He put the plant’s availability last year at 94 per cent just as in 2012 when it achieved cargo production of 333, the highest in NLNG’s history. Nnabuife, however, said the plant’s utilisation was less because of feedstock issues.

    NLNG, he said, had 24 LNG ships under its control, adding that it owns 13 while 11 are on long-term charter. The firm plans to buy six new ships between now and 2016 at an estimated cost of over $1.408 billion.

    These vessels would help create jobs for trained cadets, seafarers as well as captains and engineers, among others workers, he said.

    He said part of NLNG’s intervention in capacity building was the award of scholarships to 26 cadets in the Maritime Academy of Nigeria (MAN) in Oron, Akwa Ibom State.

    H said: “NLNG continues to support Nnabuife to train manpower for the industry. Warsash Maritime Academy, Southampton was engaged to review MAN’s Standards of Training, Certification and Watchkeeping (STCW) 95 courses. Warsash Maritime Academy is also required to facilitate the accreditation of MAN’s issuance of MCA approved certificates. STCW enables Nigerian seafarers get placement on both Nigerian and foreign flagged vessels.”

    When contacted, NIMASA spokesman Mr. Isichei Osamgbi, said the agency would not want to comment because the case is still in court. He said: “I will not make any comment on that issue because the case is still in court and any comment we make on that matter will be prejudicial.”

  • How to stop gas flaring, by NLNG

    How to stop gas flaring, by NLNG

    For Nigeria to eliminate gas flaring, the government must put in place adequate security measures for assets and personnel. It must also enforce operational best practices, Senior Business Strategy and Performance Analyst, Nigeria Liquefied and Natural Gas Limited (NLNG), Ezekiel Adesina, said in Lagos.

    He said there was need for new partnerships in gas flaring reduction initiatives and commitment by the government to investment, adding that technology is a vital tool in monetising stranded gas and reducing flaring.

    The country, he said, would require partnership from foreign investors and also employ public-private partnership (PPP) initiative to achieve both technical capability and financial support for zero flaring.

    He said in 2000, gas flaring was 38 per cent in terms of volume while in 2012, it was 11 per cent, which showed that Nigeria has taken off 27 per cent of stranded gas that had been put into utilisation. He said that within the period, a lot of improvement had been made in reducing gas flaring in the country.

    He noted that if the right regulatory framework and fiscal policies were put in place, Nigeria would have zero flaring in the next couple of years. Other factors to be considered, he said, include the issue of viability and commerciality of the gas as well as unbundling the value chain in the sector. This, he said, would give room for many players to come into the sector. It would also help to ensure that the stranded gas are captured and commercialised.

  • LNG exports landmark 3000th cargo

    LNG exports landmark 3000th cargo

    Nigeria LNG Limited (NLNG) has exported its 3000th cargo of Liquefied Natural Gas (LNG) from its Bonny Island Terminal in Rivers State.

    The milestone cargo’s destination is Marmara LNG Terminal for Botas Petroleum Pipeline Corporation in Turkey. The cargo will be shipped onboard one of NLNG’s vessels, LNG Lokoja.

    According to a statement, this milestone transaction highlights NLNG’s long-standing contribution to the sustainable reduction of gas flaring in Nigeria, monetisation of the nation’s gas resources and revenue generation, all in fulfilment of the company’s vision to help build a better Nigeria.

    Its Chief Executive and Managing Director Babs Omotowa said: “I am naturally delighted by NLNG’s attainment of this important production milestone, especially because it demonstrates what is possible as a result of a shared vision within our company.”

  • Train Seven’ll earn $2.5b revenue, says NLNG chief

    Train Seven’ll earn $2.5b revenue, says NLNG chief

    • 3000th cargo sails to Turkey today

    The Nigeria Liquefied and Natural Gas (NLNG) Limited’s planned Train Seven will yield $2.5 billion in revenues for the country and further help to reduce flared gas and the associated environment degradation when it becomes operational, the Managing Director and Chief Executive, Babs Omotowa, has said.

    Omotowa, who spoke through the Manager, Technical Services, Joseph Alagoa, yesterday during a ceremony to mark the casting off of its 3000th cargo in Bonny, Rivers State, said the benefits that would come with the operation of Train seven explains why the shareholders, including the Federal Government and other stakeholders should support the realisation of the project.

    He said: “Part of the next phase of our company’s growth programme is the addition of the seventh train to the existing six train infrastructure. When achieved, this will enable NLNG to add eight million metric tonnes of LNG to its current production capacity and that will increase our total output production to 30 metric tonnes per annum.

    “This is potentially capable of mopping up and exporting some more of the flared gas and will yield additional estimated revenue of $2.5 billion. Train seven is an enterprise, which all shareholders and stakeholders should support and pursue with vigour because the outcome will be good for Nigeria, the business and the environment.”

    Alagoa, said NLNG has helped in the national effort to diversify the country’s revenue base especially through the monetisation of hitherto flared gas during crude oil exploration.

    He said: “The NLNG since the commencement of full operation in 1999, has generated about $53 billion for the stakeholders within the first 10 years.

    “The Federal Government has also earned more than $9 billion as dividend within this period of 10 years. Before the commencement of operation, 95 per cent of 2.5 billion cubic feet of associated gas that was produced by oil companies operating was flared.

    This trend has changed, he said, adding that NLNG currently has converted over four trillion cubic feet of associated gas to LNG and natural gas liquid (NGL) for both export and domestic usage.

    He said in doing this, the company has positively impacted on the country’s gas flaring schedules, thereby helping to improve the environment, while at the same time converting various wasted resources into wealth for the nation.

    The 3000th cargo, which begins its sail to Turkey today, is expected to arrive on 19th, saying that the NLNG boss is already there to ensure all necessary preparations are in place for the receipt of the cargo.

    He said: “Nigeria LNG has successfully recorded the loading of its 3000th cargo and this is a commendable milestone that is worthy of celebration. Added to this fact, this cargo will be delivered on the 19th of this month to Botas, one of our buyers in Turkey by one of our vessels – LNG Lokoja. Also 95 per cent of the staff on this vessel are Nigerians, an indication of our aggressive pursuit of technology transfer and Nigerianisation.”

    Incorporated in 1989, Nigeria LNG, Alagoa said, has a networth of more than $24 billion and remains the single biggest private sector investment in sub-Saharan Africa with the Nigerian National Petroleum Corporation (NNPC), Shell, Elf and Agip as shareholders.

  • NLNG rescues NIMASA men from drowning

    NLNG rescues NIMASA men from drowning

    The Nigerian Liquefied Natural Gas Limited (NLNG) yesterday saved I5 officials and Naval personnel working for the Nigeria Maritime Administration and Safety Agency (NIMASA) from drowning in Bonny channel.

    It was learnt that the officials and Naval personnel were on board a tugboat, MT Bori, monitoring another ship, MT Symphony, which ran aground on Sunday at buoy 17 and 18, off Bonny channel.

    A source said the tugboat’s crew sent out a distress call when it was sinking.

    The NLNG reportedly answered the distress call and dispatched a patrol boat, MAP 2, to the scene.

    The NLNG rescue personnel transferred the crew to NLNG’s MAP 2 boat, which took them to the jetty.

  • Tade Ipadeola is 2013 NLNG prize winner

    Tade Ipadeola is 2013 NLNG prize winner

    For his book, the Sahara Testament, poet and author, Tade Ipadeola has emerged winner of the 2013 Nigerian prize for literature organised by the Nigerian Liquefied Natural Gas, NLNG.

    Making the announcement at the Oceanview Restaurant earlier today, General Manager, External Relations of NLNG, Kudo Eresia-Eke, said that in arriving as winner, Ipadeola used “Sahara as a metonym for the problems of Africa and indeed the whole of humanity.”

    Tade’s book, The Sahara Testaments, beat the other 200 entries for this year’s edition of the prize that is worth $100, 000.

    The winner was announced yesterday at The World Press Conference in Lagos.

    According to the judges, the poet demonstrates “an outstanding level of intellectual exposure and knowledge, language use, awareness of literature.”

    Ipadeola’s work deat Promise Ogochukwu’s Wild Letters ad Through the Window of a Sandcastle by Amu Nnamdi.

    Responding to the announcement, Ipadeola said: “I am elated; it is not everyday that one wins such a previous prize as the NLNG”

  • Shell declares force majeure on Bonny Light

    • 150,000 bpd shut in

    Shell Petroleum Development Company (SPDC) has declared force majeure on Bonny Light exports and gas supply to Nigeria Liquefied Natural Gas Limited (NLNG).

    The force majeure, which took effect yesterday, is as a result of shut down of the Trans Niger Pipeline (TNP), for repair of new crude oil theft leaks at Bodo West and Oloma, Shell’s spokesman Precious Okolobo said in a statement to The Nation.

    He said some 150,000 barrels of oil and 500 million standard cubic feet of gas per day are deferred.

    “The TNP has been repeatedly targeted and closed down five times since early July due to multiple leaks from crude theft connections.

    “SPDC is working to repair and reopen the line as soon as possible,” the company said.