HomeAnalysisWe have paid FG $13bn for gas purchase – NLNG

We have paid FG $13bn for gas purchase – NLNG

The Nigeria LNG Limited says it has paid over $13bn to the Federal Government for feed-gas purchase since the inception of its operations.

The NLNG disclosed this on Twitter on Sunday while marking the 31st anniversary of its establishment.

It also said over $7bn in dividends and $8bn in taxes had been paid to the Nigerian government through the Nigerian National Petroleum Corporation (NNPC).

The NLNG, which is jointly owned by the Federal Government and three international oil companies, was established on May 17, 1989 to harness Nigeria’s vast natural gas resources and produce the LNG and natural gas liquids for export.

The company said, “Thirty-one years ago, our founding fathers achieved the realisation of what was previously an elusive dream. On this day, the Nigeria LNG was incorporated, paving the way for the rise of one of Africa’s leading and most successful brands.

“We have recorded many milestones within 31 years of incorporation and over 20 years of production. With a 22 MTPA six-train plant on Bonny Island, the NLNG has reduced gas flaring from 65 per cent to less than 20 per cent and generated over $108bn in revenue.”

The NLNG said it had ensured supply of 50 per cent of cooking gas in the country, adding that it had achieved 100 per cent Nigerian management and 95 per cent Nigerian staff.

The company said, “We are the leaders in corporate social responsibility. With the Federal Government, we are building Bonny-Bodo road worth over N120bn; we sponsor $100,000 Nigeria Prize for Literature Prize and Nigeria Prize for Science as well as scholarships.

“We look to the future with the NLNG Train 7, increasing our capacity by 35 per cent. This will make our market presence stronger and generate more value from the over 200 trillion cubic feet of gas reserves in Nigeria.”

Last week, the NLNG awarded the engineering, procurement and construction contracts for its Train 7 project to the SCD JV Consortium, comprising Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea.

The Train 7 project aims to increase the company’s production capacity from 22 metric tonnes per annum to about 30 MTPA, and will form part of the investment of over $10bn, including the upstream scope of the LNG value chain.

The NLNG is jointly owned by the Federal Government, represented by the NNPC (49 per cent), Shell (25.6 per cent), Total (15 per cent) and Eni (10.4 per cent).

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