NNPC Moves To Shed Stake In Brass LNG

In a bid to dissipate the burden of monetizing gas which necessitated the formation of Brass Liquefied Natural Gas (BLNG) in the country, the Nigerian National Petroleum Corporation (NNPC) is considering accepting a $2 billion loan from a group to fund its share of the $5 billion gas project.

The group is led by the Japan Bank for International Co-operation.

NNPC spokesman, Levi Ajuonuma, in a statement explained that NNPC’s stake in the proposed Brass LNG Plant will be cut to 30 per cent from 49 per cent.

He added that the decision over the financing of the Brass LNG was an outcome of a meeting with the Japanese companies in Abuja, recently, which also include LNG Japan, Itochu Corporation and Sojitz Corporation.

Ajuonuma disclosed that a final investment decision on the gas plant will be taken in the first quarter of next year.

Meanwhile, Total SA, Eni SpA and ConocoPhillips already have 17 per cent stake each in the project.

According to Ajuonuma, NNPC has offered four per cent and three per cent to LNG Japan and Itochu, and two per cent to a joint venture between Sahara Group and Sempra Energy.

Federal Government’s decision to end the economic waste of its natural gas by stopping the large-scale flaring and venting of associated gas in place of monetization projects such as Chevron’s Gas-to-Liquids, ExxonMobil’s Natural Gas Liquids, and compressed natural gas and liquefied natural gas handled by other companies has been lauded by industry watchers.

The Tide recalls that the unprecedented growth recorded by the first Nigeria Liquefied Natural Gas Plant in Bonny made government to consider LNG plants as a viable alternative which resulted to the setting up of the LNG plant projects- Brass LNG Limited, OK LNG Limited and Nwadoro Floating LNG Limited.

According to reports, many years into their conception in 2003, these projects are yet to make any meaningful impact on the lives of the ordinary Nigerians despite the milestones recorded.

These include the completion of their Environmental Impact Assessment (EIA), Front End Engineering Design (FEED), Detailed Engineering Design (DEED), Basic Civil Work, ongoing Corporate Social Responsibility projects and a lot of projects still on hold awaiting the final investment decision.

Vivian-Peace Nwinaene