10 July 2014, Lagos – Nexans Kabelmetal Nigeria Plc is exporting electric cables worth N176 million to South Korea for use in the construction of six new vessels procured by Bonny Gas Transport (BGT), a wholly-owned subsidiary of Nigeria LNG Limited (NLNG).
NLNG’s General Manager, External Relations, Kudo Eresia-Eke, in a statement, said the delivery is in six batches each for each ship, adding that the six vessels worth $1.6 billion are being constructed by two ship builders, Samsung Heavy Industries and Hyundai Heavy Industries in South Korea.
He explained that as part of an agreement signed with the ship builders by BGT, five per cent of total contract value will be spent procuring suitable Nigerian goods, services and labour, in fulfilment of the Nigerian Content Development plan for the project.
The Managing Director, Nexans Kabelmetal, Robert Kretschmer, said the development marks a significant milestone in the history of the nation.
He said: “It is significant that a company based in Nigeria is exporting finished industrial goods to a technologically advanced country like South Korea. It places a premium on what we do as a company, despite the challenging business environment in Nigeria.
“I must say that Nexans Kabelmetal has a long standing relationship with NLNG, and for us, this is the beginning of a new level in this relationship. We look forward to this generating other business leads from South-Korea and other countries.”
Kretschmer said NLNG’s relationship with Nexans Kabelmetal, dates back to the construction of NLNG’s third train in 2003 when the cable giant was contracted to supply cables for that phase of the NLNG project. Nexans Kabelmetal has since then fully expanded its product range to produce a type of shipboard cable, approved by Bureau Veritas and Lloyds Register with Marine Certification, he added.
NLNG’s General Manager, Shipping, Capt. Temi Okesanjo, said the gas firm is committed to developing the country.
“NLNG is committed to its vision of helping to build a better Nigeria, and supports as a policy, a deliberate development and use of Nigerian human and material resources in all its activities. We collaborated with Nexans Kabelmetal and other local companies to upgrade their facilities at various stages during the construction of the NLNG trains.
Today, with Nexans Kabelmetal exporting cables to South-Korea, they have gone global. NLNG is very proud to be able to help local companies and organisations compete internationally,” he said.
Eresia-Eke said the six new vessels under construction by Hyundai and Samsung, each with a capacity of 170,000m3, will replace old BGT Ships. BGT owns 13 of the 23 vessels in Nigeria LNG’s fleet – by far the largest in Nigeria – which deliver liquefied natural gas to customers spread across the world. The company was established in 1989 to provide shipping capacity for NLNG.
Nigeria LNG Limited is the most significant arrow-head in the federal government’s quest to eliminate gas flaring and derive value from the country’s 187 trillion cubic feet of proven gas reserves.
NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49 per cent), Shell Gas BV, SGBV, (25.6 per cent), Total LNG Nigeria Limited (15 per cent), and Eni International (N.A,) N. V. S. a. r. l (10.4 per cent).