Chuks Isiwu, 10 May 2017, Sweetrude, Houston, Texas – Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has given assurance that the Final Investment Decision, FID, on the Nigerian Liquefied Natural Gas, NLNG, Train 7 project would happen in the next 18 months.
Kachikwu gave the assurance on the sidelines of the recently-concluded Offshore Technology Conference, OTC, in Houston, Texas, United States.
The minister maintained that gas investments were challenged worldwide, but stated that within the next 18 months, partners in the NLNG Train-7 project should take the Final Investment Decision to enable the project to proceed.
Citing government’s recent payment of joint venture cash call debts to international oil companies, Kachikwu said this would boost the confidence of investors in the project to now proceed with the FID.
The NLNG is owned by the Nigerian National Petroleum Corporation, NNPC, representing the Federal Government of Nigeria, with 49 per cent stake; Shell with 25 per cent, Total LNG Nigeria Limited (15 per cent) and Eni (10.4 per cent). From an initial investment of some $2.5 billion by these investors, the company has grown into a $15.6 billion investment with an asset base of about $11 billion.
The company currently operates six trains at its Bonny Island location in Rivers State, from which it produces 22 million tonnes per annum of LNG, and 5mtpa of natural gas liquids from 3.5 billion standard cubic feet per day of natural gas intake.
The Train 7 project, which stakeholders say is very significant to Nigeria’s economy, is expected to lift the total production capacity of gas and was formed to satisfy local requirements as a result of the shortage of gas but its progress had been hampered.
“Plans for building Train 7 that will lift the total production capacity to 30mtpa of LNG are currently progressing with some preliminary early site preparation work initiated. Further work awaits an FID by the stakeholders,” the Nigeria LNG company said recently.
From inception of operations in 1999, the company has reaped over 90 billion dollars in revenue from the existing six trains, out of which it has paid 5.5 billion dollars in taxes and 13 billion dollars in dividends to the Nigerian government.
It recently reported the shipment of its 4,000th cargo of LNG from its Bonny Island terminal in Rivers State, a development NLNG Managing Director, Mr. Tony Attah, hailed as a another major milestone for the company.
“This milestone is coming at a crucial time. It symbolises many things. It signifies that NLNG remains a successful company. At 4000th cargo, we have shown the world that NLNG is a world-class company, safely and reliably delivering clean energy to its customers.
“Secondly, and most importantly for Nigeria, it shows that it is time for gas; it is time to encourage this success story.
“This is the time to unleash the country’s gas potentials through catalysts like Trains 7 and 8 to spur industrial and economic transformation,” Mr. Attah stated.