Financial Energy Review
……..by James Ikenna……..
Nigerian Liquified Natural Gas (NLNG) is now set to ensure that Nigeria flies on the wing of gas in line with the federal government campaign on “Decade of Gas”.
This is coming on the heels of the plan by NLNG to raise raise gas production in Nigeria by 35 per cent and create, at least, 42,000 jobs through the coming on stream of the Train 7 project.
With a five-year completion timeline, the Train 7 project is expected to cost $10 billion NLNG Managing Director, Tony Attah, who spoke at the groundbreaking ceremony in Bonny, Rivers State, said the company has reduced gas flaring from 65 per cent to 12 per cent, to be further reduced when the project is completed.
According to him, the Train 7 project will increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million.
Attah noted that the project would stimulate the inflow of about $10 billion foreign direct investment, create 12,000 direct jobs in Bonny Island and additional 40,000 indirect construction jobs.
He said the project would boost the development of local capacity and businesses through the 100 per cent in-country execution of construction works, fabrications and major procurement.
He said various uncertainties delayed the project but its shareholders stuck to their guns and with enormous support from the Federal Government through engagements with the Minister of State for Petroleum Resources, Chief Timipre Sylva, “we are here today to witness the ground-breaking ceremony of our long-awaited Train 7 project.”
The NLNG helmsman stated further: “in Nigeria LNG, we have always distinguished ourselves as development partners with the Government of Nigeria at all levels, and this is a commitment we demonstrate through our sustainable development initiatives and excellent performance which include payment of over US$9 billion in taxes and US$18 billion as dividends to the Federal Government of Nigeria, through NNPC’s 49% shareholding.”
The NLNG Boss spoke on benefits of gas that in 2007, Nigeria LNG responded to a chronic supply shortage of LPG in Nigeria and as at “today, we are committed to supplying up to 450,000 tonnes of LPG to Nigerian market annually. Just last week, we signed our very first Sales and Purchase Agreements (SPAs) with 3 Nigerian Companies to supply over 1million tonnes of LNG to the domestic market annually.”
Attah revealed that NLNG has proven its commitment through numerous Corporate Social Responsibilities (CRS) which includes: the Nigerian Prize for Literature; which is the most prestigious award for literature in Sub-Sahara Africa and the Nigeria Prize for Science; both pitched at $100,000 each.
Undergraduate Scholarship Scheme has benefited over 5000 students in communities and to date the company has sponsored over 75 young Nigerians to top universities in the United Kingdom through its overseas Post-Graduates Scholarship Programme.
Also NLNG continues to support the Bonny Vocational Center (BVC) and its Youth Empowerment Scheme (YES) which collectively train people on the island to become employers of labour themselves.
On health support, NLNG recently signed a MoU to partner with the U.S. Agency for International Development (USAID) and the U.S. Center for Disease Control, pursuant to the elimination and control of malaria on Bonny Island as part of our Bonny Malaria Elimination Project (“BNYMEP”). Over 3000 people have now enrolled in NLNG community health insurance scheme which makes health care more accessible and affordable for people at just N10, 000/year for full insurance coverage.
Attah added that the company is excited about the prospect of linking Bonny Island, to mainland Port Harcourt by road for the very first time in history, with a 38kilometre Bonny Bodo road, valued at N120 billion with NLNG contributing 50% of the project value.
He expressed confidence that the benefits to the people will definitely increase on the back of this Train 7 Project which will expand its capacity by 35% from 22MTPA to 30MTPA.
Expectedly, the Train 7 project will add immense value to the nation, people and the company through the following opportunities; it will stimulate inflow of more than $10billion Foreign Direct Investment to Nigeria as part of the project scope.
Train 7 will create more than12, 000 direct jobs and additional 40,000 indirect construction jobs as a result of the Train 7 project. It will further development of Nigerian local capacity and businesses through the 100% in-country execution of construction works, fabrications and major procurements.
Attah pointed out that this will ultimately increase volume supply to the global market and keep NLNG and the country on top of the suppliers’ chart as world LNG demand grows. There will be more revenue, dividends and taxes to the Federal Government of Nigeria.
“We know that the global energy demand is set to increase by more than 40% by year 2050 and we strongly believe that this project is timely as gas will continue to play a major role as the preferred energy of choice in the current and future energy mix. Gas is readily available in Nigeria, it is cleaner and very affordable; hence a massive opportunity for our dear country. With 206TCF of proven gas reserve and a potential additional 600TCF! I believe that Train 7 will be an inspiration and catalyst for Trains 8, 9, 10 and even to15 in line with the recent declaration of “Decade of Gas” by Mr President.”
The NLNG MD congratulated stakeholders and shareholders who have invested so much confidence in making 14 years dream of Train 7 a reality.
He also thanked staff and workers who have stayed the course with so much tenacity and doggedness.
“As I have said in many fora, Nigeria has ridden on the back of oil for over 50 years, but with Train 7, it is now time to fly on the wings of gas. The stage is set for Train 7! It is time for gas! It is time for Nigeria.”
