A Review of the Nigerian Energy Industry

Nigeria LNG’s train 7 to yields $2.5b in revenues

LNG Bayelsa*3,000th Cargo to arrive Turkey Jan 19

Yemie ADEOYE

06 January 2014, Sweetcrude, Houston – Nigeria Liquefied Natural Gas, NLNG, train seven (7) when completed is expected to generate an estimated $2.5 billion revenue and potentially capable of mopping up and exporting some more of the currently flared gas.

In addition to the sixth train, the seventh train will enable NLNG add some eight million metric tonnes to its current production capacity, and increase annual output to 30 million metric tonnes.

Meanwhile, Nigeria LNG said it has successfully recorded the loading of its 3,000th cargo for export, a commendable milestone that is worthy of celebration.

Chief Executive/Managing Director of Nigeria LNG Limited, Babs Omotowa said
added to this feat is the fact that this historic 3000th LNG cargo will be delivered, come January 19 2014, to BOTAS in Turkey by one of our company’s vessels, the LNG Lokoja.

He explained that the vessel is manned by a workforce which is about 95 per cent Nigerian, in line with the company’s aggressive pursuit of technology transfer and Local Content policy.

He stressed that Nigeria LNG (NLNG) has helped the national effort to diversify the country’s revenue base and aided the monetization of its abundant natural gas resources, hitherto flared as associated gas during crude oil exploitation.

Incorporated in 1989, NLNG has evolved as a co consortium with NNPC, Shell, Elf, and Agip as shareholders.

According to him “with a net worth of more than $24 billion dollars, Nigeria LNG Limited remains the single biggest private sector investment in Sub-Saharan Africa.

“We are proud to note that the investment, since the commencement of full operations in 1999, generated over $53 billion dollars to its shareholders within the first ten years. The Federal Government also earned more than nine billion dollars as dividends, during the period.

“Before the commencement of operations, 75% of the 2.6 billion cubic feet of associated gas produced by oil companies operating in Nigeria was flared.

“This trend has changed. Nigeria LNG Limited currently converts over four trillion cubic feet of associated gas to liquefied natural gas (LNG) and natural gas liquids (NGLs) for both export and domestic uses.

“In doing this, the company has positively impacted on the country’s gas flaring status, thereby helping to improve the environment whilst converting a previously wasted resource into wealth for the nation.

“Nigeria LNG has today successfully recorded the loading of its 3,000th cargo for export, a commendable milestone that is worthy of celebration.

“Added to this feat is the fact that this historic 3000th LNG cargo will be delivered, come January 19 2014, to BOTAS in Turkey by one of our company’s vessels, the LNG Lokoja.

“We believe it must not go un-noticed that this vessel is manned by a workforce which is about 95% Nigerian, in line with our aggressive pursuit of technology transfer and our “Nigerianization” policy.

“Part of the next phase of our company’s growth programme is the addition of a seventh train to the existing six train NLNG infrastructure. When achieved, this will enable NLNG add some eight million metric tonnes to its current production capacity, and increase annual output to 30 million metric tonnes.

“This is potentially capable of mopping up and exporting some more of the currently flared gas, and yielding an estimated $2.5 billion in revenues.

“On balance, it is clear to us at NLNG that Train 7 is an enterprise which all shareholders and stakeholders should support and pursue with vigour, for the simple reason that its outcome will be good for Nigeria and good for our business,” he enthused.

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