The Nigeria Liquefied Natural Gas Limited’s (NLN’s) Train 7 project will change the country’s revenue and foreign investment profile, its Managing Director/Chief Executive Officer, Tony Attah, has said.
He stated this when the Minister of Finance, Mrs Kemi Adeosun, visited the NLNG’s plant on Bonny Island, Rivers State.
Attah said the planned Train 7 Project, which would increase the plant’s output from 22 million to 30 tonnes per annum (MTPA), would lift foreign direct investment (FDI).
Briefing the minister on NLNG’s operations and business, the NLNG chief said the firm would be seeking about $7 billion from the international markets to fund the construction of Train 7 and investment in the upstream gas sector that will ensure the sustainability of feedgas supply to Trains 1 to 6 and the new one.
Attah noted that recently, NLNG commemorated the repayment of a US$5.45 billion shareholder loan, which contributed to funding the Base Project, Expansion Project, NLNG Plus Project and Train 6. The final repayment, a milestone for NLNG and Nigeria, sends a strong message to the world that Nigeria was ready for more foreign investments, he added.
According to him, the economic impact of increased LNG production output would be significant, adding that since the start of NLNG operations 19 years ago, the firm has generated more than $90 billion in revenue and has paid over $16 billion dividends to the Federal Government, with respect to its 49 per cent shareholding in the company, held by Nigerian National Petroleum Corporation (NNPC). In addition, NLNG has paid some $13 billion to the Federal Government for feedgas purchases and $6.5 billion in taxes as well.
NLNG has also spent over $200 million on Corporate Social Responsibility (CSR) projects in the Niger Delta and the country as a whole.
“We take up about 50 per cent of Liquefied Petroleum Gas (LPG) supply in the country and we have committed about 350,000 tonnes to the domestic market. We believe that with an increase in our production, these numbers will be impacted on positively and this will help with the country’s revenue generation profile,” he remarked.
Attah said the NLNG has received Federal Government support for its expansion project.With that, NLNG has the full backing of all critical stakeholders, and that the stars have lined up in support of Train 7, therefore, there is no going back on the taking of the final investment decision (FID) soon, which will signal the take-off of construction.
Mrs Adeosun said: “Nigeria LNG Limited is a high-performing company, which the government has a stake in. We are very proud of NLNG’s achievements over the years and we believe the company is an ideal model for the sector,” she added.
NLNG Chairman, Chief O. R. LongJohn said the Board believed in the company’s vision of a global company helping to build a better Nigeria, which has guided company’s business decisions. He said NLNG has achieved full indigenisation of its management team who has proven over time their capacity to lead a world-class company.
NLNG Deputy Managing Director, Mai-Bornu, said the minister’s visit was an indication of the Federal Government’s commitment to increasing the country’s LNG market share, securing the country’s revenue in a fast-changing energy industry and deepening Domestic LPG utilisation locally. He urged the Federal Government to support the NLNG in its quest for funding for the project.
The minister’s visit is coming on the heels of the milestone events in preparation for Train 7 construction, which also include the award of contracts for the Front End Engineering Design (FEED) by NLNG.
Discussion about this post