30 December 2013, Abuja – The Federal Government would this year reap over $1 billion in company income tax from the Nigeria LNG Limited, according to the company’s managing director and chief executive officer, Mr. Babs Omotowa.
Omotowa confirmed that the NLNG would be paying as much as that sum to the government as the company’s 10-year tax holiday has already expired.
The NLNG plant commenced operation in 1999 and is now paying huge income tax to the government, in addition to revenue accruing to the government from its investment in the $2’6 billion project.
But, besides the huge income that had been going to the Federal Government in form of revenue from the export of the gas and the income from tax, the NLNG had contributed in reducing the rate of gas flaring in the country from 65 per cent to about 20 per cent.
According to Omotowa, the gas flaring figure would improve while income going to the government would rise if the planned expansion of the NLNG plant becomes a reality.
The managing director stated that the company was already primed for the planned expansion. The six-train plant currently produces about 22 Metric Tonnes Per Annum, mpta, of liquefied natural for export and 5mpta of natural gas liquids, NGL.
“NLNG Train Seven project will raise the liquefaction capacity of the Plant to 30mtpa, consolidating Nigeria’s position as one of the largest producers and exporters of LNG and sustained revenue for the economy,” Omotowa said.
Pointing out other potentials of the company, the NLNG boss disclosed that the company had last year awarded contracts to Samsung Corporation and Hyundai Heavy Industry both of South Korea to build six ships.
The successful completion of the six new ships will see the number of ships in NLNG fleet to 30, meaning more revenue for the company’s shareholders – the Nigerian National Petroleum Corporation, representing the Federal government, with 49 per cent stake; Shell Gas B.V. owning 25.6 per cent, Total LNG Nigeria (15 per cent) and Eni International (10.4 per cent).