A Review of the Nigerian Energy Industry

NLNG yields $51bn revenue in 13 years

20 September 2012, Sweetcrude, PORT HARCOURT –THE Nigerian Liquefied Natural Gas, NLNG, project has in its 13 years of operation earned $51 billion in revenues for the Nigerian government and other shareholders.

The funds came in from the sale of the liquefied natural gas, LNG, to markets in Europe.

According to General Yakubu Gowon (rtd), Nigeria’s former head of state, the LNG plant also delivered $9 billion in dividends to the Federal Government and paid $10 billion to the joint venture companies during the 13 years period.

Gowon, who spoke during a visit to the NLNG plant in Bonny Island, Rivers State, said Nigeria produced its first liquefied natural gas in 1999, after 42 years of crude oil exports.

According to him, Nigeria would have earned $130 billion from LNG over the 35 years of inactivity when it was first conceptualised in the 1970s.

He maintained that the proposed Train 7 of the NLNG would provide 10,000 construction jobs and also attract over $8 billion in Foreign Direct Investment.

It would also help reduce gas flares and ensure the monetisation of the country’s huge gas resources.

He urged the the government and other stakeholders to commence the construction of the seventh train, adding that the NLNG, which used to be the fastest growing LNG plant in the world, should not be allowed to fail.

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