July 29, 2021

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Buhari advocates timely completion of NLNG Train 7

Nigeria can be world’s no. 1 oil, gas country — NLNG

Nigeria can be world’s no. 1 oil, gas country — NLNG

President Muhammadu Buhari on Tuesday charged that the NLNG Train 7 be delivered on schedule so that the Train 8 project could begin.

By Ismaila Chafe

President Muhammadu Buhari on Tuesday charged that the Nigeria Liquefied Natural Gas (NLNG) Train 7 be delivered on schedule so that the Train 8 project could begin.

The President gave the charge at a virtual ground-breaking ceremony of the project in Bonny Island, Rivers State.

He urged the NLNG, the host communities, the Rivers State government and other agencies of the Federal Government to continue to collaborate to ensure the completion and eventual inauguration 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.

“I also look forward to more Trains from NLNG to harness the over 600 trillion cubic feet of proven gas reserves we are endowed with.

“I commend shareholders of NLNG, the Federal Ministry of Petroleum, NNPC, the Nigerian Content Development and Monitoring Board and other stakeholders for very exemplary collaboration which has culminated in this great opportunity.

“I thank the foreign investors for the confidence reposed in Nigeria.

“I assure all Nigerians and potential investors in the oil and gas sector that the Federal Government will continue to create the enabling environment to develop the sector and bring the full benefits of gas closer to our people,’’ he said.

Buhari recounted that the story of Nigeria LNG was one he had been “passionately associated with during the formative years of the project’’.

“As Minister of Petroleum Resources, I kicked off our first foray in LNG Business in 1978. At the time it was already apparent that Nigeria was mainly a gas-rich country with a little oil!

“It, therefore, gives me great joy to see the organisation transform from just a project in the early 1990s to a very successful company with over 20 years of responsible operations and steady supply of Liquefied Natural Gas, Liquefied Petroleum Gas and Natural Gas Liquids into the global market.

“This is proof that Nigeria has great capacity to deliver value to the world by harnessing our natural resources,’’ the president added.

He congratulated NLNG and its shareholders – NNPC, Shell, Total and Eni for proving that a Nigerian company could operate a world class business safely, profitably and responsibly.

He lauded the consortium for clearly setting the stage upon which Nigeria’s vast gas resources would continue to grow well into the future.

According to the president, the focus of his administration is to boost the development of Nigeria’s abundant gas resources, strengthen the gas value chain, develop the much-needed infrastructure and enhance safe operations in the sector as outlined in the National Gas Policy of 2017.

“Through the Decade of Gas initiative, which I recently launched, we will transform Nigeria into a major gas and industrialised nation with gas playing the key role as revenue earner, fuel for industries and necessary feed for petrochemicals and fertiliser plants,’’ he said.

He also expressed delight that the NLNG, as the pioneer LNG company in Nigeria, had conscientiously proven the viability of the gas sector over the years, currently contributing about one 1 per cent to Nigeria’s GDP.

“NLNG has generated114 billion dollars in revenue over the years, paid nine billion dollars in taxes; 18 billion dollars in dividends to the Federal Government and 15 billion dollars in feed gas purchase.

“These are commendable accomplishments by the company’s 100 per cent 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 energy transition,’’  he said.

In his address, Minister of State for Petroleum Resources, Timipre Sylva, described NLNG as a ‘“blessing to the nation’’.

According to him, it has positively complemented crude oil exploration by monetising flared gas and yielding huge revenue to the nation and to investors.

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

“I boldly say that the ground breaking of Train 7 is a guarantee to every stakeholder of more dividends in terms of further reduction in gas flaring, more revenue to the nation and shareholders, more job opportunities, especially at the construction phase and more social investments for the society,’’ he said.

Also speaking, Anthony Attah, the Managing Director and Chief Executive Officer of NLNG, said the Train 7 would increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million mtpa.

Attah noted that the project would stimulate about 10 billion dollars Foreign Direct Investments 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.

‘‘Nigeria has ridden on the back of oil for over 50 years, but with this Train 7 project, Nigeria is now set and I believe it is now time to fly on the wings of gas,’’ he said. (NAN)

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