Nigeria LNG Generates $108bn, Delivers 5,000 Cargoes in 21 Years

The Nigeria Liquefied Natural Gas (LNG) has delivered 5,000 cargoes to its customers around the world and generated $108 billion from gas sales in its 21 years of operations.

The General Manager, External Relations of LNG, Mrs. Eyono Fatayi-Williams, said on Thursday in Abuja when she appeared alongside the Managing Director and CEO of NLNG, Mr. Tony Attah, before the House Committee on Gas Resources, that between 1989 and 2019, the NLNG was incorporated and became a limited liability company with four shareholders.

Fatayi-Williams added that the NNPC, which represents the federal government, has 49 per cent shares while Agip, Shell and Total have 51 per cent shares.

The general manager noted that from 1999, the first cargo sailed from Bonny Island in Rivers State to France which put the NLNG on the map as an operational company.

Fatayi-Williams said that the company was recognised by THISDAY Newspapers as the best performing company of the year and of the decade.

She noted that this award was revalidated internationally at the LNG summit where NLNG was awarded as the company that had made the most outstanding contribution to the LNG industry.

Fatayi-Williams stated: “We buy gas, we liquefy 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 5,000 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 operation LNG trains – the train is also known as LNG manufacturing line – of 22 million tonnes capacity.

“Our installed asset is $11 billion; today we have generated $108 billion in revenue since inception and have delivered $35 billion in dividends to the shareholders in the 21 years that we have operated and have paid $8 billion in taxes.”

Fatayi-Williams explained that in the early days of crude oil exploration, 65 per cent of gas was flared, but at the moment, less than 12 per cent of the gas, which is produced with crude is flared.

The general manager noted that Nigeria is currently rated 9th in the world with 200 Trillion Cubic Feet (TCF) of proven gas reserves.

According to her, the 600 TCF of unproven gas reserves, if monetised, will make Nigeria the fourth globally in the ranking order of proven gas reserves in the world.

Fatayi-Williams added that there is an opportunity for Nigeria to move up in the ranking of the use of cleaner energy.

Making reference to media publications, Fatayi-Williams said that over 470,000 persons die from firewood smoke in five years.

The general manager said according to World Bank data, about a 100,000 Nigerians die annually due to firewood smoke inhalation and related complications mostly women and children.

She said: “If you compare this with the number of people who have died of COVID-19 complication which is less than 2,000 as reported by NCDC, very little is said about the 100,000 who die of firewood and smoke.

“The use of firewood is a double-edged 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.”

Earlier, Attah said because of the changing energy mix, the world is moving from dirty to clean energy, adding that by 2050, there would 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?

“So there is that dilemma, the world will need more energy, it needs it clean and cheaper and gas has offered itself not only as a transition fuel but also a destination fuel.

“We see gas as food because of its role in fertilizer production, we see gas as employment, we see gas as an industry, power and transport as most countries have trains and cars running on gas,” he added.

Also, the Deputy Committee Chairman, Hon. Yusuf Miga, commended the current NLNG management for the signing of Final Investment Decision (FID) for the establishment of Train 7 project.

He said the committee was committed to supporting initiatives that would accelerate investments in the production and processing of gas with a view to consolidating Nigeria’s gas export opportunities and to enhance massive gas penetration and utilisation in the domestic market.

Adedayo Akinwale

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