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NLNG earnings hit N9tr in 13 years

By The Citizen
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The Nigerian Liquefied Natural Gas (NLNG) has earned about $60 billion (about N9 trillion) from its gas production and shipping business in the past 13 years.

This was made known by the Managing Director, Nigeria LNG,  Babs Omotowa while speaking at the 2013 yearly Olobiri lecture Series in Lagos, on Thursday.

Omotowa said the earnings were made from 3000 LNG shipments made locally and to the international market.

According to him, the company's gas production has increased to about 23 million tonnes per annum (mtpa), an increase of one million from 22mtpa from previous production.

Although, stakeholders in the industry have recently raised concerns that Nigeria's LNG production may not record any significant increase until 2015, due to some unfavourable factors, Omotowa was however, optimistic about growth in LNG output.

'We have shipped 3000 LNG to customers globally and we accounted for over $60 billion revenue in 13years. The company has paid over $15 billion to companies on feedgas purchase Upstream JVs (Joint Ventures) and has also paid over $23 billion dividend to four Shareholders, while $180 million was paid on VAT, taxes, among others,' he said.

Omotowa further stated that although more of the gas cargoes being exported to foreign market, he said the company has also made significant commitment to Nigerian market to boost local utilisation, adding that about 63 per cent of the 23 million tonnes gas produced yearly goes to Europe, while 32 per cent are Asia bound.

'This was first time that Nigeria government provided regulatory measures to encourage gas utilisation, which create enabling environment for serious Nigeria investors to partner with the International Oil Companies (IOCs).

'As at today NLNG is producing seven per cent of global Liquefied Natural Gas market,'' he said.