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Tag: NLNG

  • NLNG, Dangote, others get awards

    Nigeria Liquefied Natural Gas Limited (NLNG) has received a special recognition award, for demonstrating virtues that  impact on the lives of Nigerians

    According to NLNG’s Manager, Communications and Public Affairs, Andy Odeh, the firm was recognised by the Nigerian Maritime Administration and Safety Agency (NIMASA) at the agency’s Corporate Dinner and Merit Awards in Lagos, for its contributions to the realisation of the agency’s mandate on safety on the waterways, especially the Bonny-Port Harcourt sea route, which borders NLNG’s area of operation in Rivers State.

    Recently, the company was involved in the rescue of 12 victims of a boat mishap on the Bonny Sea.

    NLNG, through its subsidiary, NLNG Ship Management Limited (NSML), has been supporting NIMASA  in developing the sector.

    NSML is facilitating a Seafarer Continuous Development Programme (SCDP), which has 36 NIMASA-sponsored cadets on NSML managed vessels.

    NSML’s plan is to continue to partner  NIMASA by providing best in-class sea services to cadets in line with the NLNG’s vision of building a better Nigeria.

    The SCDP programme will be of benefit to over 1,000 cadets, who are in need of berth space on board vessels, to obtain the mandatory sea time requirement for their progress.

    NLNG’s  Managing Director Mr. Tony Attah acknowledged NIMASA’s commitment at ensuring order and safety on the water ways, and solicited more cooperation from the agency to sustain the success of NLNG’s operations as Nigeria’s major player in the global LNG market, with significant shipping activities, managed by its subsidiary, NLNG Ship Manning Limited (NSML).

    Attah recalled the contributions of NLNG to the development of the shipping sector. He noted the risks that sea piracy pose to the company’s business on the Bonny Channel.

    He expressed strong belief that NIMASA would not relent in nipping the trend in the bud.

    Other awardees include  frontline industrialists and business moguls, Alhaji Aliko Dangote, and Mr. Femi Otedola, Emir of Kano, Mallam Sanusi Lamido, and the Ooni of Ife, Oba Adeyeye Enitan Ogunwusi.

  • Senate: $1.05b NLNG dividend not missing

    The Chairman of the Senate Committee on Gas, Senator Bassey Albert, on Thursday in Abuja, clarified that the ongoing investigation of the application of $1.05billion Nigeria Liquefied Natural Gas (NLNG) dividend to support the importation of petroleum products into the country has nothing to do with any missing funds since no such money was missing in the first place.

    Senator Albert, who doubles as the Chairman of the Senate Committee on the Application of the NLNG Dividend, explained that the clarification became necessary due to sensational and misleading reports in some sections of the media.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadryas disclosed this in a statement.

    According to him, the lawmaker said the mandate of the Committee was to determine the instrument under which NNPC relied upon to affect the said withdrawal and subsequent application of the NLNG dividend to meet pressing national demand for fuel supply, noting that the Committee relies on NNPC to provide informed perspective on the issues.

    Read Also: Osinbajo to chair extended NEC meeting Friday

    The Senate Committee Chairman emphasized that the engagement with NNPC was to understand the rudiments of the account flow and also to discover how the Committee, working in harmony with NNPC, could make the NLNG dividend more effective and beneficial to the nation.

    Responding, Mr. Isiaka Abdulrazaq, Chief Financial Officer (CFO) of NNPC, who represented the corporation’s Group Managing Director, Dr. Maikanti Baru, pledged the willingness of the corporation to support the Committee in its assignment, saying that relevant documents have been supplied to the panel to enable it determine the veracity or otherwise of NNPC’s .

  • NLNG, others partner to provide electricity in Bonny

    The Nigerian Liquefied and Natural Gas (NLNG), Shell Petroleum Development Company (SPDC) and Mobil, have signed a memorandum of understanding (MoU) to provide uninterrupted power supply to Bonny, in Rivers State which hosts NLNG’s plants.

    The firms in a paper titled: “Effective Utilisation of Gas Powered Plants in Nigeria”, said power has not fallen below 90 per cent in the area, saying the partnership has led to the formation of Bonny Utility Company(BUC), through which the indigenes will be employed.

    It said the BUC, in order to curb power theft, has installed a sophisticated tracking system to identify discrepancies between customer payment and consumption.

    The paper said:  “The pre-paid metering model has reduced energy waste and subsequently promoted power sustainability. Bonny Kingdom indigenes currently account for 95 per cent of the BUC’s workforce. By hiring locally, the BUC has installed company pride in its indigenes, because the people of Bonny Kingdom take a sense of pride in  the ownership of the company, they actively work towards its best.’’

    The paper said that ministries and government agencies provide tax exemptions and operational licences to the companies, adding that the development has helped  has helped in reducing tax bills of BUC, while at the same time, ensures improvement in its operations.

    According to the paper, BUC provides the Bonny Island  community with a fixed amount of power, in order to meet the power consumption needs of the 40 per cent of consumers in the area.

    It said other consumers in the area purchase additional power from BUC at an affordable rate.

    ‘’ On average, the BUC charges less than 20 per cent of the Port Harcourt Distribution Company’s( PHDC) tarrifs.’’

    In a related development, Shell  Managing Director, Mr  Osagie Okunbor, said the firm will continue to play significant roles in the nation’s energy industry, by supplying gas to thermal plants that need the product for generation, adding that it has been  playing a vital role in the energy sector.

  • NLNG, Nigeria Breweries, others sponsor ANA Convention

    ALL is now set to host hundreds of writers in Lagos for the 37th International Convention of Association of Nigerian Authors (ANA), it was learnt.

    According to the chairman of the 2018 convention local organising committee, Akin Adeoya, to ensure a successful event, the group is partnering with top firms companies like Nigeria Liquefied Natural Gas (NLNG) Limited, Nigeria Breweries Plc, Digitalreality Prints Limited, Google Nigeria and others.

    Adeoya, who spoke during an LOC meeting in Ikeja, said: “Lagos is hosting the writers from within and outside. The event holds a huge economic gain for the people and businesses in the state. So, there have been a lot of enthusiasm and excitement by stakeholders and sponsors.

    “The convention, which will hold in Lagos after a 23-year hiatus from October 25 to 28, has received a major boost in terms of sponsorship support from creativity-centric companies, such as the Nigeria Liquefied Natural Gas (NLNG) Limited, Nigeria Breweries Plc, Digitalreality Prints Limited, Google Nigeria, Pan Atlantic University (PAU), Kolanut Limited, Hotel 1960 Group, and a few other fringe supporters.”

    NLNG Head of Corporate Communication Mr. Andy Odei said: “Our decision to be the main sponsor of the convention is line with our vision of helping to build a better Nigeria, and we believe it tallies with the vision of ANA.”

    He further reiterated that the convention is a veritable platform to showcase to the world this year’s winner of NLNG’s Nigeria Literature Prize. The prize is worth $100,000.

    On his part, ANA Lagos Chairman Mr. Yemi Adebiyi said: “The economy has been tough this year, and it is the reason we are thankful for all our sponsors, especially our main sponsor, NLNG.

    ANA National President Mr. Denja Abdullahi is optimistic about the participation and support of the Lagos State Government at the convention, which has been themed: Literature, Mega City and Mega Narratives.

    The convention began yesterday with a colloquium on Digital Publishing of creative works in honour of the late GTBank MD, Tayo Aderinokun, who in his life was an avid ANA patron.

  • Literature, science and NLNG

    Let me borrow the words of a great leader; Martin Luther King Jr. in his quote where he said “We are now faced with the fact, my friends, that tomorrow is today. We are confronted with the fierce urgency of now. In this unfolding conundrum of life and history, there is such a thing as being too late. This is no time for apathy or complacency. This is a time for vigorous and positive action.’

    I fully agree with this great leader because there often comes a time in history when a lack of fierce urgency can be extremely costly and no matter the field of human endeavour, when the time to actualize potential and leverage opportunities or deliver great results is ripe, alternatives to vigorous, positive actions must never be accepted. That fierce urgency of now is one of the reasons why NLNG is driven to continue rewarding excellence in literature and science to the tune of $100,000 each and every year for the past 14 years without fail!

    Our world is changing!! Changing, faster than we can imagine with massive disruptions going on around us, quantum leaps in technological advancement and changing energy mix exacerbated by the unstoppable energy transitions.

    The EIA report forecasts that the world population will grow from the current seven billion to nine billion people in just about 20 years by 2040. Just imagine adding one China and one India to the world or adding about 10 more Nigeria to the world. Two billion is a lot of people indeed. With this population growth, the world will need much more energy to support global development and growth. However the world now only wants energy that is clean to help counter the effects of climate change, rising global temperature with a 20C limit and of course assurance of a cleaner environment for the next generation. That is why we at Nigeria LNG believe it’s time for gas! Gas is cleaner; gas is available in abundance and is much cheaper than other energy sources. More importantly, Nigeria is blessed with so much gas we are now known as a gas province with little oil. Today we have over 190TCF of proven gas reserves with scope for an additional 600TCF which should propel us from the extant number 10 position in the world to number four once we prove the 600tcf.

    Gas will boost industrialisation of pharmaceuticals, petrochemicals, Agro-based businesses through fertiliser and even LPG for domestic use in homes for day to day cooking etc. The opportunity is immense as we have seen in other countries like Qatar where they have grown from GDP per capital of about $2,000 to more than $150,000, all on the wings of gas. Essentially, gas is our future, but that future is now, as tomorrow is now today. Gas remains a very big opportunity for Nigeria and Nigerians on the back of the multiple potential attraction of more   investment value. I would like to call your attention to a YouTube video a friend showed me recently titled – It’s not about the nail! Some critics argued it’s not about the hammer either but I would like to align with Richard quest of CNN in his just a penny statement – It’s not about how much resource you have; it’s about what you do with it!! That is why Nigeria LNG was incorporated in 1989, to harness Nigeria’s vast natural resources, eliminate gas flaring and to monetise Nigeria’s gas with a vision of being a “global player…helping to build a better Nigeria”. The company has since its first export in 1999 generated over $100 billion in revenues, paid over $15billion in dividends to government and well over $6 billion in taxes to date.  With the demand for cleaner energy, the time is now for NLNG to increase its output. Our Train 7 project which is currently going through FEED is set to deliver final investment decision (FID) to increase capacity by 35% from the current 22mtpa to 30mtpa in the next four years. This project will also create employment opportunity for more than12000 people in the same time frame.

    People often ask: “Why is Nigeria LNG so committed to honouring writers and scientists when its primary business is obviously gas?” It is because of our understanding of how indispensable literature and science are to societal development and how the time to promote them in a global economy that is fast leaning on innovation and creativity, is NOW. More so, a quick check of human history and evolution of societies shows that the development of science and literature is synonymous with societal growth and success. The more science and literature are advanced, the more society grows in innovation, creativity and enlightenment which are essential pillars of civilization and human development.

    No business can exist in isolation and be sustainable. No organisation can deem itself successful if it operates in a failed society. Hence, by instituting a significant prize for science, NLNG clearly expects to bring science and scientists to public attention, save them from what is regarded as current low rating in national estimation and avail the nation of their immense benefits.  Countries like Japan, India and Singapore rose on the crest of knowledge provided by science and technology to conquer poverty and join the first world.

    It is in this context that the Nigeria Prize for Science was established and it is awarded yearly to any scientific work that provides solutions to a major national problem.

    The Science Prize has metamorphosed into a real solution finder for the societal problems plaguing our nation. Last year, 24 researchers competed for the prize which was pitched on finding solutions to the malaria epidemic in Nigeria. The theme for that competition was “Innovations in Malaria Control”.

    Through the prize, we made significant inroad into finding solutions to malaria pandemic in the country with the delivery of three distinguished research findings on malaria control. This was a landmark achievement for Nigeria and for Nigeria LNG.

    For the Literature Prize, NLNG observed that, for decades, Nigerian writers had collectively bemoaned the fate of the literary industry. They were unhappy with the declining levels of education and literacy, unhappy with the loss of a reading culture, and for good reasons; sad that writing and publishing in a nation that gave the African continent its first crop of literary giants had all but become lost art.

    Taking cognisance of these concerns, NLNG began to explore options of instituting a literary prize, because significant literary prizes are widely seen as a first step on the road to recovery for literature as they serve both as a celebration of literature and writers.   This was a unique opportunity to effect beneficial change using the literature prize as a vehicle.

    The Nigeria Prize for Literature and The Nigeria Prize for Science are now quite literally, ‘the gold standard’ in literature and science on the African continent today.

    There has been a literary renaissance of some sort since the Nigeria Prize for Literature was initiated. New literary stars like ChimamandaNgoziAdichie, Teju Cole, Lola Shoneyin, Abubakar Adam Ibrahim, TadeIpadeola, Chika Unigwe, IkeoguOke and many more have emerged; new literary awards have been instituted; trail blazing publishing firms like Cassava Republic, Farafina, Kraft Books, Parresia, Quramo, Narrative Landscape and others have  rode on the crest of the new wave; book festivals and fairs like the Ake Book and Art Festival, the Port Harcourt Book Festival, the Kaduna Book and Art Festival, the Abuja Literary Festival and the Crater Literary Festival have been pioneered and thousands of book clubs are being set up in schools, homes and offices across Nigeria.

    The Nigeria Prize for Literature has contributed to triggering the renaissance in the literary world today and we feel very proud of this achievement.

    Despite all that has been said, we believe that more can still be done and should be done with a sense of ‘fierce urgency’ and Now. There are more opportunities in the book value chain which are still untapped.

     

    • Attah is MD CEO NLNG.

  • NLNG: Train 7 will push gas production to 30mtpa

    The Nigeria Liquefied and Natural Gas Limited (NLNG) is expected to produce 30 metric tonnes per annum (MTPA) on completion of its Train 7, its former Managing Director, .Godswill Ihetu, has said.

    Train is a vehicle through which the gas giant exports Liquefied Natural Gas (LNG) to developed countries, such as China and Asia.

    He said when Train 7 is completed, Nigeria would improve its Gross Domestic Product (GDP), increase its foreign exchange earnings, make our revenue through taxes and create more employment, among others.

    Ihetu said NLNG has completed Train 1, 2, 3, 4 5 and 6. It has also generated revenue of over N10 billion for the government, adding that the cash would increase substantially, when Train 7 takes off.

    Ihetu said: “NLNG capacity will increase from 22 to 30 metric tonnes per annum, when Train 7 is completed. NLNG has made considerable investment in building the trains and further increase exportation of gas for the growth of the economy. The intentions for building the trains are laudable and the results will impact positively on the economy. Besides improvement in gas exports, various efforts made by NLNG and its partners, including the Nigerian National Petroleum Corporation (NNPC), Total, Eni and Shell in producing gas, would lead to the growth of the domestic economy.

    “The power plants, petrochemical firms and others are using gas for production, which has a multiplier effect on the economy. Gas processing and export is good business and Nigeria would not find it difficult to recoup its investments on such activities as local and international organisations use the product for growth.’’

    Foreign direct investments (FDIs), Ihetu said, have been created to speed up the process of building the Trains by NLNG and further galvanise the economy.

    He said various Trains built by NLNG provide immense benefits for the government, urging the firm to continue to create opportunities that would enable local and international companies get added value through gas.

    On funding, he said NLNG has overcome its problem of raising money for the take-off of various Trains, stressing that Federal Government through NLNG could access funds through various windows.

    He said foreign lenders have confidence in NLNG, which gives it access to borrow money for big-ticket transactions and pay back. He said foreign financial institutions enjoy working with the firm.

    He said infrastructure is a problem facing operators in the gas value chain, adding that NLNG, which is a major stakeholder in the gas value chain, is working to solve the problem by venturing into projects that would provide money for such purpose.

  • NLNG generates $100b, remits $15b to FG in 10 years

    The Nigerian Liquefied Natural Gas (NLNG) has generated over $100b in revenue to the country while remitting over $6,5b in dividends to the Federal Government and other equity holders in the company, it has emerged.

    This is as the Bureau of Public Enterprises and other stakeholders in the company denied reported planned sale of NLNG.

    The company has also reduced gas flaring in the country by 65 percent according to the Managing Director (MD), Tony Attah, who disclosed that in its 10 years of operation, the Federal Government through Nigerian National Petroleum Corporation (NNPC) with its 49 percent equity has received over $15b in dividends and $6.5b as tax.

    According to him, the remittance easily made the company the highest tax paying company in Nigeria and the African continent.

    As shareholders, Shell Gasa BV owns $25.6 pecent,Total owns 15 percent and ENI International with 10.4 percent.

    Attah spoke yesterday at the investigative hearing into the ‘proposed sale of the Nigerian Liquefied Natural Gas Limited, NLNG’; ‘Need to Investigate contract for modification of EGP3B production platform following the joint ventures agreement between NNPC and Chevron Nigeria Limited’; and ‘investigation
    of the contract for the upgrade of OML 58 Upgrade 1, the execution of
    Obote/Ubeta/Rumuji (OUR) pipeline’ 

    He said: “Despite our contribution to the country, a lot of it is monetary more than $100b revenue and about $15b dividend to the government directly and also since we became tax-paying company since 2009, we’ve contributed more than $6.5b in taxes, helping to build a better Nigeria but essentially, we do more than financial contribution.

    “As a result of Nigeria LNG being in existence, we have helped reduced gas flaring by more than 65 percent and will continue to work with our upstream suppliers to mop-up more because we produce the opportunity as the biggest gas sink for whatever gas is provided in the country.

    “We have the capacity to receive that gas but I think by far, the biggest opportunity is in Nigeria’s brand and reputation. Before NLNG, Nigeria was actually number two on the undesired league of gas flaring nations in the world. But today, we are number seven ahead of other countries like united State, I mean, United States is flaring more than Nigeria”.

    He however added that the company has developed plan to embark on $6b capacity development project for the Train 7, which has potential of creating 12,000 new jobs in the Niger Delta region, saying, “The big deal for us in Nigeria LNG is growing capacity.

    “Currently we have six Trains with 22 million tonnes per annum capacity which is 7 percent of global market share of LNG. We want to grow back to the 10 percent which was what it was before. So we want to grow by about 35 percent capacity before Australia. We want to grow by about 355 capacity, that will come via Train 7 project for which we have commenced the engineering design and we are looking forward to take a final investment decision not too long.

    “It’s always heart-warming for us at NLNG of being a global player and helping to build a better nation. As it were in helping to build a better nation in the context of train 7, is really working hard to deal with the main issues of the Niger Delta which has been put
    together by experts to eradicate poverty and unemployment and whatever we are able to tackle to change the narrative of the Niger Deltastory.

    “This project, we believe will be providing opportunity for over 12,000 jobs within the seven years that the project will be in existence”..
    On the reported planned sale of NLNG, Attah dismissed the report, saying none of the four company’s shareholders expressed interest in selling equity in the company.

    “We have been invited on the purported sale of Nigerian Liquefied Natural Gas, we actually came in to express our views, that first of all, we are not aware on any intention or intent to sell Nigeria LNG or sell out its shares based on confirmation from our shareholders.

    “Because we have gone to our four shareholders: NNPC, Total, Shell and
    Eni, they all confirm that they are not interested to sell their shares. For us it came as a surprise,” he said.

    Total’s Executive Director (Assets Management and Energy Solution), Patrick Olimna, denied report on the sale of NLNG, saying, “within the NLNG, the shareholding community, we did not have such a discussion” while speaking on behalf of Bureau of Public enterprises (BPE), Yusuf Adamu, Director of Mines and Steel,  also reported that NLNG was not part of the scheduled assets for commercialization and privatization

    In his response, Committee Chairman, Frederick Agbedi, said: “We join the elders of the Niger Delta, and we are not in support on any contemplation to sell off NLNG. The shares held by NNPC on behalf of the country, the people of Nigerians have vested interests in the company, so they are not shares that any government can take it in
    whatever guise.

    “You don’t play politics which such investment even if that is the only revenue we can rely on as a nation.

    “On that note, the Committee will step down the motion for the committee’s consideration. On the other two motions, we are frustrated by the position of the NNPC. What is important to them is that we are receiving dignitary from other country”.

    Worried by the absence of  the Group Managing Director (GMD) of NNPC, Maikanti Baru at the hearing, the Committee adjourn its hearing indefinitely, till he can physically present himself  to respond to queries on the $114.580m variation on the modification of the EGP 3B Production platform.

     

  • Expansion: NLNG shops for $7 billion

    The Nigeria Liquefied Natural Gas Limited (NLNG) has initiated moves to raise N7 billion from the global market to shore up its operations. EMEKA UGWUANYI, JOHN OFIKHENUA and AUGUSTINE EHIKIOYA report that the facility will fast-track the company’s expansion and also boost the economy.

    In the build-up to Final Investment Decision (FID) later this year, the Nigeria Liquefied Natural Gas (NLNG) Limited (NLNG) is seeking $7 billion from the global financial markets for the sustainability of its operations and expansion project (construction of Train 7).

    The expansion is to raise its production capacity from 22 million tonnes per Annum (MTPA) to 30 MTPA. It will ensure the sustainability of gas supply to its existing trains (Trains 1 to 6) and the new Train 7.

    Commemorating the repayment of a $5.45 billion shareholder loan for its existing trains in London, United Kingdom (UK) yesterday, NLNG’s Managing Director & Chief Executive Officer Tony Attah revealed that the funds being sought will cover the company’s expansion programme (construction of Train 7) and investment in the upstream gas sector in Nigeria.

    Attah said: “Let’s get this very clear. NLNG is a mid-stream company that has monetised over 5.96 trillion cubic feet (Tcf) of associated gas (AG) which would have otherwise been flared thus helping to build a better Nigeria. However, what we are doing is not just looking to fund the expansion of the plant but also to ensure sustainability of gas supply to the plant, for the continued success of NLNG.

    “All of these align with our belief that gas is a catalyst for industrial and economic transformation which will position Nigeria to become a leading gas producing country.

    “The success story of the NLNG project is due to some key critical success factors which include the shareholding and governance structure of the company that has made the company an independent Incorporated Joint Venture, guaranteeing an independent Board of Directors, effective decision making as well as funding for its projects which is critical for the sustenance of this successful project.

    “Over decades, the company has raised funds for its projects, from a combination of shareholders loans, internally generated revenue and third party loans. In all of these financial ventures, NLNG demonstrated financial discipline and character by abiding by loan covenants, terms and conditions without a single breach or default, and we believe this positions the company as a Lenders delight.

    “The consolidated loan contributed towards funding the Base Project, Expansion Project, NLNG Plus Project and Train 6. The final repayment, which is a milestone for NLNG and Nigeria, thus sends a strong message to the world that NLNG has come of age and will build on this in its expansion programme which will further increase our output and secure our position in the top quartile of LNG suppliers globally.

    “Our financial credibility speaks for itself and we will be testing the financial market once again with our sustainability and expansion projects estimated at $ 7 billion. Raising $7 billion is no small feat; anywhere in the world, this will be a major event.

    “Therefore, we will be seeking support from the local and international financial institutions, our shareholders and the Nigerian government in bringing to reality the dreams of our founding fathers and achieving our vision of helping to build a better Nigeria.”

    Attah’s deputy Sadeeq Mai-Bornu explained that the NLNG has contributed immensely to Nigeria’s economy since its inception when the first LNG cargo was loaded in October 1999.

    According to him, the company has paid over $33 billion in dividends. He also added that payment to Joint Venture (JV) feedgas suppliers by NLNG from inception till date amounts to $24 billion.

    Participants at the shareholder loan repayment ceremony included, members of the NLNG Board of Directors, potential lenders and global financial institutions.

    The NLNG is a private limited liability company owned by the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49 per cent), Shell Gas B.V. (25.6 per cent), Total Gaz Electricite Holdings France (15 per cent), and Eni International (10.4 per cent).

     

    Firm generation to govt hits $25b

     

    As of the last count, the NLNG Ltd has generated $25 billion in revenues to the Federal Government, comprising dividends of circa $17 billion and taxes of $7.2 billion.

    The company which had sourced a total principal amount of $4.043 billion from its shareholders in their respective shareholding proportions to partly fund the construction of Trains 1-6, has repaid $5.45 billion.

    This disclosure was made by the NNPC in a statement yesterday through its spokesman Ndu Ughamadu.

    The statement noted that while the interest during the construction period was capitalised and added to principal for repayment from operational date of the financed trains, the total capitalised interest in the shareholders loan is $1.411 billion which, in addition to the total principal drawdown of $4.043 billion, accounted for the total loan amount of $5.45 billion repaid by the company.

    Shedding more light on the Front-End Engineering Design (FEED) contract signed in London, the NNPC Group Managing Director, Dr. Maikanti Baru, expressed the corporation’s readiness to support the Federal Government’s aspirations to actualising Train-7 of project.

    Baru said as 49 per cent shareholder in the NLNG, the NNPC had immensely contributed to the success of the company over the years, supporting equity participation and contribution to shareholders loan.

    The NNPC boss said: “Through critical interface with relevant Government agencies, we have played a pivotal role in the actualization of Trains 1 to 6 (T1-T6). Given the success of T1-T6, NNPC is therefore fully committed and aligned with Government aspirations to replicate the success of this project. Therefore, our current focus is to kick start T7.”

    Describing the NLNG as a jewel in the crown of Nigeria as well as a very strategic investment for the nation, Baru stated that the NLNG would continue to act as a catalyst for nation-building for years to come.

    He said the prompt servicing of shareholders’ loan with accelerated repayments did not only demonstrate NLNG’s credit worthiness, it had also reiterated its robust financial position.

    Lauding President Muhammadu Buhari and Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, for their support, also commended the tireless efforts of the various working teams – the Board and Management of NLNG as well as the shareholders, the IOCs and the NNPC Finance & Accounts as well as Gas & Power Directorates for working hard towards achieving the feat recorded so far.

    Baru added: “Your sacrifices, faith in Nigeria and unflinching support in providing the required financing and technical support for the NLNG is commendable.

    “It is our hope that this relationship opens a new vista of opportunities for all the Shareholders to play more active roles in the Midstream Oil & Gas business in Nigeria.”

    Baru described the company as a source of pride to the government and people of the Country, the host communities, shareholders, financial markets and several other stakeholders.

     

    Thriving operation thrills president

     

    President Buhari congratulated the NNLG board, management, staff and shareholders over yesterday’s signing of the MoU between the B7 JV Consortium and SCD JV Consortium.

    In a statement by the Senior Special Assistant on Media and Publicity, Garba Shehu, the President said the deal will pave the way for the additional Train 7 and increase the country’s gas production output.

    The President also welcomed the commitment of all parties in supporting his administration to launch the “gas revolution” in Nigeria by ensuring the realization of Train 7, which has been stalled for many years under previous administrations.

    According to the statement, the President was full of optimism that the significant step will culminate in FID for the much-awaited multi-billion dollar Train 7 expansion programme by the end of this year.

    The President described the signing of the contract for the plant expansion project after an eight-year delay as a sign of irreversible commitment by the Joint Venture to enter a FID and a clear indication that the restoration of investors’ confidence to the country.

    President Buhari also noted that the Seventh Train which is expected to provide some 8,000 jobs was not only important for the country, but also an important benchmark for the Niger Delta region, which rightly yearns for development projects.

    As a former Federal Commissioner for Petroleum and Natural Resources, the President recalled with nostalgia that several signature projects, launched under his watch, which would have accelerated the growth of Nigeria’s economy, including the NLNG, had sadly suffered neglect and abandonment by succeeding administrations.

    For instance, the NLNG had the goal of establishing 12 trains by early 1980s but the project growth was stunted. So far, only six of those trains have been commissioned.

    However, with this signature project back on the cards, President Buhari strongly believed it is destined for his administration to complete the project.

    The statement reads: “This project perfectly keys into the Federal Government’s ‘Economic Recovery and Growth’ agenda. It signifies foreign investors’ confidence in our country’s economy,” the President said.

  • NLNG, others sign pact on new vessel to boost LPG supply

    Nigeria Liquefied Natural Gas Limited (NLNG), and E. A. Temile and Sons Company Limited, have  sealed an agreement for the construction of a new liquefied petroleum gas (LPG) vessel to boost supply to domestic market. E. A. Temile and Sons Company is a wholly Nigerian company, under a contract with Hyundai Mipo Dockyard, South Korea.

    According to NLNG, the new LPG vessel will boost volume and availability of cooking gas as well as consolidate the company’s contributions to deepen the domestic LPG industry and increase consumption of the clean gas. The new LPG vessel will be built  under a contract with Hyundai Mipo Dockyard, South Korea and chartered to NLNG.

    At a contract signing ceremony between E.A Temile and Sons Limited and Hyundai Mipo Dockyard in London, NLNG Managing Director and Chief Executive Officer, Tony Attah, remarked that the signing ceremony was ground-breaking for NLNG because it supports the company’s aspiration, firstly, to further help develop the domestic LPG market and promote the growth of indigenous companies and Nigeria’s economy.

    Attah said: “NLNG remains the single largest supplier of Liquefied Petroleum Gas (LPG) over 50 per cent in Nigeria and looks to enable its expansion in future. We produce the LPG in our plant in Bonny, Rivers State, and transport it by sea to Lagos from where it is distributed to every part of the country. This assures the product availability, accessibility, and affordability which are central to us as a company. NLNG’s domestic LPG intervention scheme aligns with its business focus of bringing energy to the world and helping to build a better Nigeria.

    “A World Health Organisation (WHO) report on Household Air Pollution and Health published in May 2018, affirmed that about four million people die prematurely annually from illness attributable to air pollution from inefficient cooking practices, using solid fuels and kerosene. And local data suggest that about 100,000 women and children die in Nigeria annually from the same causative factors. We believe that the expansion and strengthening of the domestic LPG market can help to stem this tide in Nigeria.”

    On NLNG’s contribution to Nigerian Content, he said: “We work closely with the Nigeria Content Development and Monitoring Board (NCDMB) to ensure compliance with the Nigeria Oil and Gas Industry Content Development (NOGICD) Act 2010, consequent upon which we signed a Business to Business Service Level Agreement (SLA) with in June 2017, the first of its kind in the relationship between the oil and gas industry operators and NCDMB in Nigeria.

    “Examples of our Nigeria Content initiatives implementation include BGT Plus Project where over 80,000 metres of cable, manufactured in Nigeria by Nexans Kabelmetal, as well as 9,000 pieces of anodes, produced by Metec WA, were exported to South Korea for utilization  in the construction of 6 new Dual Fuel Diesel Engines (DFDE) LNG carriers.

    “PCMN/Berger Paints Nigeria Limited exported over 400,000 litres of Paints and Coatings and IO Furniture/Vina produced and exported movable furniture to South Korea, all for the construction of the LNG carriers. In addition, Nigerians were involved in the project at the Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) shipyards in South Korea.

    “The benefitting indigenous companies, some of whom were exporting their products for the very first time, earned revenues in excess of $10 million and international reputation as exporting companies. All these are testaments that great things can truly happen once we set our minds to achieve them. Same way, we believe and are working assiduously towards achieving the final investment decision (FID) for NLNG Train 7, which in addition to raising our LNG production capacity by 36%, from 22,000 million tonnes per annum to 30,000 million tonnes per annum, also has capacity for 1.0 MTPA in the DLPG market,” he said.

    Also at the ceremony, Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Kesiye Wabote, said the signing ceremony was a manifestation of the local content journey in the LPG sector, adding: “I commend NLNG for this bold endorsement of our local capacities and capabilities. It is certainly a confidence building move across board and I expect several operators and service providers to get inspirations from this milestone event and see the possibilities in our local content practice rather than the difficulties.”

    The 23,000 cubic metres vessel will be delivered in 2020.

  • NLNG needs $12b to boost expansion

    The Nigerian Liquified Natural Gas (NLNG) will require investment of about $12 billion to fund the construction of two new processing units, known as trains.

    The terminal currently has six smaller trains in which gas is compressed and cooled to 258 degrees below Fahrenheit (minus 161 Celsius), before being piped as LNG onto ships at nearby jetties.

    According to New York-based Teneo Intelligence, the firm will need the funds to boost production capacity.

    The firm, located on Bonny Island, Rivers State, said it will decide later this year whether to invest more than $10 billion to boost capacity by 40 per cent. That would allow the Bonny Island terminal – an hour’s ferry ride from the oil hub of Port Harcourt – to export as much as 66 million cubic meters (30 million tons) a year to markets in Europe and Asia.

    Nigeria is the largest LNG producer in the region and wants to get bigger.

    NLNG’s shareholders are Royal Dutch Shell Plc, Total SA, Eni SpA and the Federal Government through state-run oil firm, the  Nigerian National Petroleum Corporation (NNPC). The shareholders  must weigh the benefits of expanding their profitable LNG venture against the threat of higher taxes, pipeline vandalism in the Niger Delta and volatile gas prices. Those concerns have already delayed the project first mooted in 2012.

     

    Any further interruptions will increase the risk that Africa’s biggest oil producer misses the global transition to cleaner fuels and a chance to reduce its stuttering economy’s reliance on crude.

    Nigeria’s 49 per cent stake in the venture has proved lucrative, earning the government $16 billion of dividends from 2004 to 2016, according to statements on NLNG’s website. Buhari used those payouts to bail out several states in 2015, after the oil-price crash battered the economy, and this month it transferred $650 million of NLNG proceeds to its sovereign wealth fund for infrastructure development.

    An analyst with Bloomberg New Energy Finance in Singapore, Maggie Kuang, said the country would need to strike when the iron is still hot by taking advantage of existing opportunity. “Nigeria needs to take the opportunity. The next few years are critical for investment decisions. If Nigeria does not take any action, it will fall behind,” Kuang said.

    Last year, Nigeria shipped 46 million cubic meters of LNG, making it the world’s fourth-biggest exporter behind Qatar, Australia and Malaysia, according to data compiled by Bloomberg. It also faces increasing competition from the United States (U.S.), Russia and Mozambique in an LNG market where demand is set to double to about 1.28 billion cubic meters by 2030, according to Sanford C. Bernstein & Co.

    French oil giant Total declined to comment, while Italy’s Eni and Nigeria’s NNPC didn’t respond to requests for comment. A Shell spokesman referred queries to NLNG.

    Nigeria has no shortage of gas. Its almost 5.7 trillion cubic meters of proven reserves are the biggest in Africa, but supplies to NLNG can be erratic.

    Flows were reduced by 10 per cent at one point last year amid shutdowns at oil and gas fields in the Delta region as thieves tapped into pipelines. Shell said this week that attacks, ranging from piracy and theft to vandalism and kidnapping, continue to put a brake on output.

    Guaranteeing enough throughput for the new, larger trains at Bonny Island will require investment from gas producers to increase supply and improve security, according to NLNG.

    There are also fiscal concerns, with some Nigerian politicians wanting to remove tax breaks enjoyed by the venture. President Muhammadu Buhari’s government is against such a move, which NLNG says would kill off its expansion plans.

    Should that threat be averted, the business case for the LNG project is good, according to Gail Anderson, research director for sub-Saharan Africa upstream oil and gas at Wood Mackenzie in Edinburgh.

    “The economics of NLNG have always been pretty robust. It has been a tremendously successful project that accounts for a large chunk of the international oil companies’ value in Nigeria,” she said.

    Crucially, the oil majors have retained a majority stake, said Malte Liewerscheidt, a West Africa analyst at Teneo.

    “That has allowed the company to operate successfully thanks to limited political interference,” he said. “NLNG is widely regarded as the most efficiently run company with major government involvement, much unlike the entirely state-owned NNPC.”

    To maintain that position and Nigeria’s clout among global energy giants, the new trains must be built, NLNG Managing Director Tony Attah said in February. The cleaner fossil fuel offers a better long-term option than crude, he said.

    “Nigeria has to begin to think about the relevance of oil in the future,” Attah said. “The energy mix is fast-changing and Nigeria has to come to terms with that. The best bet is for gas.”