Nigeria LNG exports landmark 3000th cargo
Nigeria LNG Limited (NLNG) today (Tuesday January 7, 2014) exported its 3000th cargo of Liquefied Natural Gas (LNG) from its Bonny Island Terminal in Rivers State.
The milestone cargo's destination is Marmara LNG Terminal for Botas Petroleum Pipeline Corporation in Turkey. The cargo will be shipped onboard one of NLNG's vessels, LNG Lokoja.
This milestone transaction highlights NLNG's long-standing contribution to the sustainable reduction of gas flaring in Nigeria, monetisation of the nation's gas resources and revenue generation, all in fulfilment of the company's vision to help build a better Nigeria.
NLNG Chief Executive and Managing Director Babs Omotowa said of the company's achievement: 'I am naturally delighted by NLNG's attainment of this important production milestone, especially because it demonstrates what is possible as a result of a shared vision within our company, the hard work and dedication of staff, and cooperation from government and our shareholders as well as other stakeholders including our loyal customers. NLNG currently processes for export and domestic use, more than four trillion cubic feet of associated gas which was previously flared, thereby helping to preserve our environment and support Nigeria's economic growth. '
From the export of its first LNG cargo on October 9, 1999, which was delivered to Montoir LNG Terminal, France, Nigeria LNG has grown to what has been described as Africa's largest single private sector industrial investment, safely and reliably supplying about seven percent of total world LNG demand.
Before the commencement of operations, 75% of the 2.6 billion cubic feet of associated gas produced by oil companies operating in Nigeria was flared. This trend has changed. Nigeria LNG Limited currently converts over four trillion cubic feet of associated gas to liquefied natural gas (LNG) and natural gas liquids (NGLs) for both export and domestic uses. In doing this, the company has positively impacted on the country's gas flaring status, thereby helping to improve the environment whilst converting a previously wasted resource into wealth for the nation.
From initial investment of some $2.5billion, the Federal Government has earned over $25billion in dividend, feed gas purchase revenues, taxes and duties, etc.
In addition to this, the company also contributes significantly to national wealth and the economies of states in which it operates, through payment of 30 percent Company Income Tax and other applicable taxes and tariffs, bringing Nigeria's total share of NLNG's profit to about 70 percent.
The company has also set aside supplies of about 250,000 tonnes of cooking gas for the Nigerian domestic market, and has helped re-invigorate the cooking gas value chain with increased investments and job creation.
Through economic empowerment, entrepreneurship development programmes, support for Nigerian Content, capacity building for local industries, and sustainable community development, NLNG continues to use Nigeria's gas resources to help diversify the economy and deliver benefits to the country.
Within its first ten years of operation, the company had established a global reputation for being a reliable supplier. It has also maintained plant reliability level of 97 percent, considered to be a remarkable accomplishment in a challenging environment, thereby projecting NLNG as an inspirational business model for Nigeria.
Currently, NLNG has 24 LNG carriers which together constitute by far the largest shipping fleet in the country. This is in addition to six new vessels under construction in South Korea, due for delivery in 2015 and 2016.
Nigeria LNG's near term expansion plans include construction of a seventh train to complement the existing six train structure, which when in operation will up the company's total production capacity to 30 million tonnes per annum (MTPA) of LNG and potentially increase Nigeria's supply of world LNG demand to 10%, bringing more value to government, shareholders, communities and local businesses among others.
NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas BV, SGBV, (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).