By Ikenna Omeje
President Muhammadu Buhari, on Tuesday, flagged off the commencement of construction work on Train 7 of the Nigeria Liquefied Natural Gas (NLNG) in Bonny, Rivers State.
Buhari in his keynote addressed obtained by Majorwaves, charged the Board of Directors, management, and staff of Nigeria LNG, the host communities, the Rivers State government, and agencies of the Federal Government to continue to collaborate to ensure completion and eventual commissioning of the project safely and on time, so that Train 8 can take off.
The president who went down memory lane, recollected how as minister of petroleum resources, he kicked off the country’s first foray in LNG business in 1978, adding that at the time it was already clear that Nigeria was mainly a gas-rich country with little oil.
He expressed joy that the organisation has today transform from just a project in the early 90s to a very successful company with over 20 years of responsible operations and a steady supply of Liquefied Natural Gas, Liquefied Petroleum Gas and Natural Gas Liquids into the global market.
“This is proof that Nigeria has great capacity to deliver value to the world by harnessing our natural resources,” Buhari said.
He noted that the focus of his administration is to boost the development of the country’s vast gas resources, strengthen the gas value chain, develop infrastructure, and enhance safety in the sector in line with the 2017 National Gas Policy, adding that the Decade of Gas initiative will transform the country into an industrialised nation.
“The focus of this administration is to boost the development of Nigeria’s abundant gas resources, strengthen the gas value chain, develop the much-needed infrastructure and enhance safe operations in the sector as outlined in the National Gas Policy of 2017.
“Through the Decade of Gas initiative, which I recently launched, we will transform Nigeria into a major gas and industrialised nation with gas playing the key role as revenue earner, fuel for industries and necessary feed for petrochemicals and fertiliser plants,” Buhari said.
Noting NLNG contribution to the country’s Gross Domestic Product, he said: ”I am proud that NLNG as the pioneer LNG company in Nigeria, has conscientiously proven the viability of the gas sector over the years, currently contributing about one percent to our country’s GDP; NLNG has generated $114 billion in revenues over the years, paid $9 billion in taxes; $18 billion in dividends to the Federal Government and $15 billion in feed gas purchase. These are commendable accomplishments by the company’s 100 percent Nigerian Management Team.
“With this level of performance, I can only hope that the company continues to grow starting with this Train 7 project but also positioning Nigeria to thrive through the energy transition.”
He congratulated Nigeria LNG and its shareholders – NNPC, Shell, Total, and Eni for proving that a Nigerian company can operate a world-class business; safely, profitably, and responsibly saying, “Clearly, you have set the stage upon which Nigeria’s vast gas resources will continue to grow well into the future.”
The president also commended the shareholders, the federal ministry of petroleum resources, the Nigerian National Petroleum Corporation (NNPC), and the Nigerian Content Development and Monitoring Board (NCDMB) for their collaboration, which has resulted in the commencement of work on Train 7.
He said, “As we flag off the Train 7 project today, I look forward to the development and execution of more Gas Projects by the IOCs and Indigenous operators, and more Trains from Nigeria LNG to harness the over 600 trillion cubic feet of proven gas reserves we are endowed with.
“Let me use this opportunity to commend the Shareholders of NLNG, the Federal Ministry of Petroleum, NNPC and the NCDMB and other stakeholders for very exemplary collaboration which has culminated in this great opportunity for Train 7.
“I want to thank the foreign investors for the confidence reposed in Nigeria, and assure all Nigerians and potential investors in the Oil and Gas sector that the Federal Government will continue to create the enabling environment in order to develop the sector and bring the full benefits of Gas closer to our people.”
The Final Investment Decision (FID) on Train 7 was taken in December 2019. This was followed by the signing of the Engineering, Procurement and Construction (EPC) Contracts in May 2020, for the project with the SCD JV Consortium, comprising affiliates of Saipem, Chiyoda and Daewoo.
The NLNG is an Incorporated Joint Venture owned by the NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N.V. S.àr.l (10.4%).
