02 Aug 2013, Abuja – The Nigeria Liquefied Natural Gas, NLNG, Limited has converted about 92 billion cubic metres, bcm, of associated gas to export 968 Liquefied Natural Gas, LNG, and 145 Natural Gas Liquids, NGL, product cargoes cumulatively worth around $17 billion in 12 years.
The company said, Thursday that with its $12 billion investment portfolio, it was conveniently contributing about four per cent of Nigeria’s Gross Domestic Product, GDP, per year while fulfilling its domestic LPG supply obligations.
The General Manager, Commercial of NLNG, Mr. Patrick Olinma, said at a public forum tagged “commercial week,” which was organised by the company in Abuja, that while NLNG was delivering about five per cent of global LNG demand, it was also cautious of expected challenges from global LNG markets.
He added that the company has also found recent encroachments on the sanctity of its Act by various government agencies unpleasant.
The forum was attended by key players in the LNG production and sales, including off-takers, and regulatory agencies, amongst others.
Olinma listed some of the challenges of NLNG in the global LNG market to include the impacts of the United States shale gas revolution, discoveries in Mozambique, some parts of East Africa and Australia, economic recession in Europe, which gas had affected gas demand, alternative energy on NLNG primary markets, as well as limited market opportunities for renewal of two Gas Supply Agreements, GSAs, which would expire by 2020 and 2021.
“In this year alone, we have had four force majeure, which have placed the integrity of our deliverability in question; the Japanese have asked questions on our capacity to deliver, of course, we assured them of our capacity but the recent issue with NIMASA did not go down well.
“How do you explain your vessels placed on blockade by the government agencies of your home country; this is not good for us in the midst of global competition and we hope it does not occur again? “We had a similar case with the NDDC (Niger Delta Development Commission) sometimes back and the Supreme Court resolved that we were protected by the sanctity of the NLNG Act, which exempts us from paying taxes until after 10 years but here we have NIMASA, DPR and NPA breathing down on us,” Olinma said.
NLNG is jointly owned by the Nigerian National Petroleum Corporation, NNPC, with 49 per cent share, Shell-25 per cent, Total LNG Nigeria-15 per cent and Eni-10.4 per cent.
It was incorporated as a limited liability company on May 17, 1989 to harness Nigeria’s vast natural gas resources and produce LNG and NGLs for export.
– Chineme Okafor, This Day