‘NLNG Generates $108b In 21 Years’

0
26
Shell Set To Increase Domestic Gas Production

The Nigeria Liquefied Natural Gas (NLNG) has announced that it generated about $108 billion in revenue since it started operation about 21 years ago, while giving out about $35 billion as dividends to shareholders.

General Manager, External Relations and Sustainable Development, Nigeria Liquefied Natural Gas (NLNG), Mrs Eyono Fatayi-Williams who spoke on behalf of the managing director of the company while briefing members of the House of Representatives Committee on Gas also said that Nigeria has the potential of becoming the 4th largest producer of proven gas if the over 600 trillion cubic feet of unproven gas is monetised.

She described the use of firewood for cooking as a double edge sword, adding that apart from death brought about by smoke from firewood, cutting down trees for firewood leads to deforestation which is dangerous for the environment.

According to her, about 470,000 people died from smoke generated from firewood within five years, which gives an average of 100,000 people annually.

Fatayi-Williams who said that the NLNG project remained in mind of the founding fathers between 1960 when it was conceived and 1989, disclosed that it became a reality in 1989 when it was incorporated, adding that while it has existed for 30 years, it has operated fully as a limited liability company with four shareholders for 21 years.

According to her, the NNPC which represents the Federal Government on the board controls 49 percent shares of the company while Agip, Shell and Total control 51 per cent shares.

Fatayi-Williams said from 1999 when the first cargo sailed from Bonny Island in Rivers State to France, the NLNG has succeeded in putting Nigeria on the map as an operational company, stressing that since then it has been safe, consistent and reliable production as an operating company.

“We buy gas, we liquidify it, we transport it and sell it to the buyers and get value for Nigeria LNG and for Nigeria. In the 21 years we have operated, we have delivered 5000 LNG cargoes around the world and we have 23 dedicated LNG ships to ensure our operation runs smoothly.

“On Bonny island we have six installed and operational LNG trains (the train is also known as LNG manufacturing line) of 22 million tonnes capacity.

“Our installed asset base is 11 billion dollars.

We have generated 108 billion dollars in revenue since inception and have delivered 35 billion dollars in dividends to the shareholders in the 21 years that we have operated and have paid eight billion dollars in taxes,” Fatayi-Williams said.

She explained further that in the early days of crude oil exploration in the country, 65 per cent of total gas produced in the country was flared, adding that as at today, less than 12 per cent of the gas which is produced with crude is flared, an indication  of  where the country stands as at now.

She disclosed that Nigeria is currently rated 9th in the world with 200 Trillion Cubic Feet (TCF) of proven gas reserves, adding that Nigeria will be ranked 4th globally in gas production if the additional 600 TCF of unproven gas reserves is monetized.

She said this was a clear indication that there a great opportunity for Nigeria to move up in the ranking of the use of cleaner energy, stressing that over 470,000 persons die from firewood smoke in five years.

Quoting the World Bank data, she said about a 100,000 Nigerians die annually due to firewood smoke inhalation and related complications with women and children mostly affected, saying “compare this with the number of people who have died of COVID-19 complication which is less than 2000 as reported by NCDC.

“The use of firewood is a double edge sword, it is not only leading to a significant number of death, we also know that cutting timber for firewood leads to deforestation, which later leads to desertification.

“As the desert moves further down, livestock have to move to find water to drink and pasture and these have resulted to some of the security situation we have today. It therefore becomes very important that the LPG (cooking gas) agenda is supported to displace firewood and kerosine,” Fatayi-Williams said.

Fatayi-Williams said that as at 2007, the national consumption of LPG was 50 tonnes, adding that following the intervention of NLNG, about one million tonnes of cooking gas was consumed in Nigeria in 2019 alone.

She maintained that the current projection is that in another five years, about three million tonnes of cooking gas will be consumed in Nigeria, saying “as we displace firewood, we allow trees to grow, we allow the environment to be better and hopefully a better future for our children.

“Cooking gas remains a cleaner alternative to firewood and kerosine,” Fatayi-Williams said.

Managing Director of NLNG, Mr Tony Attah told the lawmakers that it was time to unleash the nation’s potential in gas, adding that “there are many countries Nigeria can look up to in terms of what gas can do like in Qatar, Trinidad and Tubego and in the Netherlands.

“We are ready to partner with your committee to bring about that progress that is required to unleash the potentials of gas. We have the potential to become number four in the world, we have 200 TCF proven and we know of 600 TCF unproven; if we prove that, Nigeria will become fourth in the world.

“Because of the changing energy mix, the world is moving from dirty to clean energy and by 2050, there will be nine billion people in the world. Today we have about seven billion, so it is like adding one new India and China to the world; where will the energy come from,” Attah said.

Chairman of the House Committee on Gas, Hon. Nicholas Mutu commended the NLNG for its pioneering status and for putting Nigeria on the global map of major gas processing countries and significantly for making Nigeria one of the largest exporters of gas in the world.

Mutu also commended the management for the signing of Final Investment Decision (FID) for the establishment of Train 7 project, which will no doubt keep Nigeria at the top of LNG producers and exporters list.

“In addition to the foregoing the huge contributions of the NLNG to the Nigerian economy in revenue contribution, research, technology, man-power, community development and the promotion of literature and the Arts, to mention a few, cannot be over emphasized.

“We are thus looking forward to working with your team and other stakeholders to use the Business Model and the wealth of experience of NLNG to formulate new legislation and incentives that will assist to efficiently harness the gas resources in Nigeria for the all-round development of the nation’s economy,” Mutu said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

15 − three =