A Review of the Nigerian Energy Industry

Nigerian firms reap over $10m from NLNG vessel contracts

Capt. Temi Okesanjo, General Manager Shipping, Nigeria LNG in handshake with Tor Nygard, CEO of Berger Paints with team members from both companies.
Capt. Temi Okesanjo, General Manager Shipping, Nigeria LNG in handshake with Tor Nygard, CEO of Berger Paints with team members from both companies.

17 December 2014, Sweetcrude, Port Harcourt – Several Nigerian companies taking part in the supply of products for building Nigeria Liquefied Natural Gas, NLNG, Limited’s six new ships, stand to reap about US$10 million in revenues.A statement released by the company revealed that NLNG via its subsidiary company, Bonny Gas Transport, BGT, Limited, in 2013 contracted the building of the new vessels to South Korean shipbuilders, Samsung Heavy Industries, SHI, and Hyundai Heavy Industries, HHI, and successfully leveraged to include a unique local content clause which enables the concerned Nigerian companies to benefit from substantial vessel construction material export contracts.

Paints and Coatings Manufacturers Nigeria (PCMN) Limited is among the key local company-beneficiaries, and on its part has already shipped 66,000 out of an agreed 388,000 litres of paint, to Samsung Heavy Industries shipyard in South Korea.

Other companies which have also already exported products to South Korea include Berger Paints Nigeria Plc, which has exported 33,000 of its 83,000-litre quota, worth over one million USD, and Metec West Africa, which has exported two hundred and ten tonnes (210) of anodes, valued at USD 2.5million.

Nexans Kabelmetal Limited, another notable beneficiary, recently shipped 180,000 metres of cables costing over one million USD to the South Korean shipyards.

Said Captain Temi Okesanjo, NLNG’s General Manager, Shipping;

“The achievements recorded by Nexans Kabelmetal, Berger Paint Nigeria Plc, Metec West Africa and other Nigerian manufacturers, add to the success of our vessel acquisition project. The benefits from this project do not stop at exports. For example, Berger Paints and Kumkang Korea Chemicals Ltd (KCC), a South Korean company, and technical partner to HHI, will exchange staff in a special technology transfer programme.”

“By the end of this project, NLNG would have helped the concerned local companies acquire the necessary capacity and know how, to successfully compete with peers from all around the developed world. This is consistent with NLNG’s vision to help build a better Nigeria.” Okesanjo added.

NLNG ferries liquefied natural gas (LNG) cargoes onboard large ships to buyers in different parts of the world, and is ranked among the top five global suppliers of the fuel. The company additionally produces about 80 percent of the cooking gas currently used in the Nigerian market.

Also reacting, Berger Paints Managing Director and Chief Executive Officer, Tor Nygard, concluded:

“In the past, Berger Paints only exported paints to Ghana. This recent export of our products to South Korea is a major milestone for our company, and we are very excited for this remarkable opportunity. I believe efforts which follow the laudable NLNG example, will go a long way to develop the local industry in Nigeria.”

BGT owns 13 of the 23 vessels in Nigeria LNG’s fleet and the acquisition of six new vessels, the first of which is due in 2015, positions the company to preserve and grow its position as a reliable player in the global energy market.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the consistent with NLNG’s vision to help build a better Nigeria.” Okesanjo added.

NLNG ferries liquefied natural gas (LNG) cargoes onboard large ships to buyers in different parts of the world, and is ranked among the top five global suppliers of the fuel. The company additionally produces about 80 percent of the cooking gas currently used in the Nigerian market.

Also reacting, Berger Paints Managing Director and Chief Executive Officer, Tor Nygard, concluded:

“In the past, Berger Paints only exported paints to Ghana. This recent export of our products to South Korea is a major milestone for our company, and we are very excited for this remarkable opportunity. I believe efforts which follow the laudable NLNG example, will go a long way to develop the local industry in Nigeria.”

BGT owns 13 of the 23 vessels in Nigeria LNG’s fleet and the acquisition of six new vessels, the first of which is due in 2015, positions the company to preserve and grow its position as a reliable player in the global energy market.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the

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