NLNG@35: Pioneering Progress and Building a Better Nigeria
As Nigeria Liquefied Natural Gas (NLNG) celebrates its 35th anniversary, it stands as a beacon of progress, significantly contributing to Nigeria’s economy through the utilization of natural gas. Since its incorporation on May 17, 1989, NLNG has transformed Nigeria into one of the world’s leading gas-producing nations, marking a pivotal shift in the country’s economic landscape.
A Legacy of Economic Impact
NLNG was established with the goal of harnessing Nigeria’s vast natural gas resources to produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs). The company embarked on this journey with the export of its first LNG cargo to France in 1999, and since then, NLNG has maintained its reputation as a reliable, responsible, and trusted global supplier. With assets valued at approximately $17.5 billion, and a 51% stake held by international oil companies while 49% belongs to Nigeria through the Nigerian National Petroleum Company Limited (NNPC), NLNG’s impact on the nation’s growth is profound.
Over the years, NLNG has paid about $18 billion in dividends to the Federal Government of Nigeria, courtesy of its shareholding through NNPC, and has contributed around $9 billion in taxes. Moreover, the company has generated substantial Foreign Direct Investment (FDI) for Nigeria, further bolstering its economic growth. NLNG’s contribution to the national Gross Domestic Product (GDP) has been significant, accounting for approximately 4% annually since 2008.
Creating Jobs and Building Local Capacity
NLNG has also been a major driver of job creation in Nigeria. At the peak of construction for each of its plants, the company provided over 12,000 jobs, with major sub-contractors employing more than 18,000 Nigerians in technical roles. Through initiatives like the Train 7 project, which is expected to double or triple job opportunities post-construction, NLNG has actively contributed to reducing unemployment in Nigeria.
In its commitment to developing local capacity, NLNG has promoted the growth of Nigerian contractors and vendors, empowering them through its Nigerian Content plans. For instance, the company’s Nigerian Content commitment in acquiring six new DFDE ships through its subsidiary, Bonny Gas Transport (BGT), led to the establishment of a drydocking and ship-repair yard in Nigeria and the training of Nigerians in various aspects of ship design and construction.
Environmental Stewardship and Health Initiatives
NLNG has played a pivotal role in reducing gas flaring in Nigeria from 65% to about 20%, significantly contributing to environmental protection. The company has also promoted the use of cleaner energy through its domestic LPG supply program, which has reduced reliance on firewood and improved public health.
The company’s CSR initiatives extend to healthcare, where it has implemented the Bonny Community Health Insurance Programme to provide affordable and quality healthcare services to local communities. Additionally, NLNG has supported educational development through scholarships and the University Support Programme, investing $12 million to equip engineering laboratories in six universities across Nigeria.
Awards and Recognition
NLNG’s efforts have not gone unnoticed. The company has received numerous awards, including the “Local Content Company of the Year 2022” at the Nigeria International Energy Summit and recognition from the Federal Inland Revenue Service (FIRS) as its most supportive taxpayer. Recently, President Bola Tinubu commended NLNG for its steadfast commitment to excellence and its significant contributions to Nigeria’s GDP, reaffirming the company’s role as a growth engine for the nation.
Looking Forward
As NLNG looks to the future, it remains committed to building a better Nigeria. The company’s ambitious Train 7 project promises to enhance its global recognition, while its focus on domestic LNG supply aims to bridge Nigeria’s energy gap, particularly in the power sector. With a track record of success and a vision for continued progress, NLNG is poised to play an even greater role in Nigeria’s development in the years to come.
Source: Premium Times
