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Market Digest Nigeria

Economy

Buhari Flags Off NLNG Train 7 Project

President Muhammadu Buhari has charged that the Nigeria Liquefied Natural Gas (NLNG) Train 7 be delivered on time so that the Train 8 project can commence.

Buhari gave the charge Tuesday at the virtual groundbreaking ceremony of the project in Bonny Island, Rivers State. The President urged continuous collaboration between the board of directors, management and staff of NLNG, the host communities, the Rivers State Government and other agencies to ensure completion and eventual commissioning of the Train 7 project “safely and on time.”

”As we flag off the Train 7 project today, I look forward to the development and execution of more gas projects by the International Oil Companies (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,” he said in a statement issued by his spokesman, Femi Adesina.

The President congratulated the Nigeria Liquefied Natural Gas (NLNG) and its shareholders – NNPC, Shell, Total and Eni for proving that a Nigerian company can operate a world-class business safely, profitably and responsibly.

The President also expressed delight that the 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 Nigeria’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 said.

In his address, the Minister of State for Petroleum Resources, Timipre Sylva described NLNG as a ”blessing to the nation”, noting that it has positively complemented crude oil exploration by monetising flared gas and yielding huge revenue to the nation and investors.

Sylva added that since NLNG became operational in 1999, the nation has recorded a drastic reduction in operational flare status from 65 per cent to 12 per cent.

Also speaking, Anthony Attah, the Managing Director and Chief Executive Officer of NLNG, said the Train 7 will increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million mtpa, while further adding immense value to the nation and the people.

Attah noted that the project would stimulate inflow of about 10 billion dollars FDI into Nigeria, create 12,000 direct jobs in Bonny Island and additional 40,000 indirect construction jobs.

He said the project would also further the development of local capacity and businesses through the 100 per cent in-country execution of construction works, fabrications and major procurement

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