Going by the words of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu about the Final Investment Decision (FID) of the Nigerian Liquefied Natural Gas (NLNG), Train 7 project should be expected within the next 18 months.
The minister made this known recently during the just-concluded Offshore Technology Conference, OTC, in Houston, Texas, United States.
According to him, the challenges of gas investments are not peculiar to Nigeria alone, but a global phenomenon, noting that within the next 18 months, partners in the NLNG Train-7 project should have made the project a reality take so that it would commence operation without delay.
While making reference to the recent payment of joint venture cash call debts by the government to international oil companies, the Minister assured that the move would boost the morale of the investors interested in the project to now proceed.
The Nigerian National Petroleum Corporation (NNPC) represents Nigeria’s interests in the company with 49 per cent share. Other companies that have shares in that company are Shell, Total LNG and Eni
It should be noted that since its operation commenced in 1999, NLNG has raked in over 90 billion dollars in revenue from the existing six trains.
It has also served as a good source of revenue to the Nigerian government as it has paid about 5.5 billion dollars in tax and 13 billion dollars in dividends to the Nigerian government..
At present, the company operates six trains at its Bonny Island location in Rivers State with a production of 22 million tonnes per annum of LNG, and 5mtpa of natural gas liquids from 3.5 billion standard cubic feet per day of natural gas intake.
Stakeholders in the oil and gas industry have expressed confidence on Train 7 project, saying that it would serve as a key vista that would help Nigerian economy because it would ratchet up the total production capacity of gas since its purpose is to satisfy local requirements of the commodity.
A statement released by LNG Company reads: “Plans for building Train 7 that will lift the total production capacity to 30mtpa of LNG are currently progressing with some preliminary early site preparation work initiated. Further work awaits an FID by the stakeholders.”
Recently there was a report of shipment of its 4,000th cargo of LNG from its Bonny Island terminal in Rivers State,
Describing the move as a major and commendable achievement of the company, the Managing Director of NLNG, Mr. Tony Attah said:
“This milestone is coming at a crucial time. It symbolises many things. It signifies that NLNG remains a successful company. At 4000th cargo, we have shown the world that NLNG is a world-class company, safely and reliably delivering clean energy to its customers.
“Secondly, and most importantly for Nigeria, it shows that it is time for gas; it is time to encourage this success story. This is the time to unleash the country’s gas potentials through catalysts like Trains 7 and 8 to spur industrial and economic transformation.”