Buhari Flags Off NLNG Train 7 Construction

President Muhammadu Buhari, yesterday, charged that the Nigeria Liquefied Natural Gas (NLNG) Train 7 be delivered on time so that the Train 8 project can commence.
The President gave the charge at the virtual groundbreaking ceremony of the project in Bonny Island, Rivers State, yesterday.
The project is expected to increase NLNG’s current six-train plant capacity by about 35% from an extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.
The foundation stone was laid on behalf of the President, who flagged the project virtually, by the Minister of State for Petroleum Resources, Chief Timipre Sylva, supported by the Rivers State Governor, Chief Nyesom Wike, represented by Deputy Governor, Dr. Ipalibo Harry Banigo; the Amanyanabo of Grand Bonny Kingdom, King Edward Asimini William Dappa Pepple III, Perekule XI; Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari; the Chairman, NLNG Board of Directors, Dr. Edmund Daukoru, NLNG’s Managing Director/CEO, Engr. Tony Attah; and NLNG’s Deputy Managing Director, Engr. Sadeeq Mai-Bornu, amongst others.
Other dignitaries who graced the event are the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote; NLNG board of directors; NNPC board of directors; distinguished senators; members of the company’s Senior Management Team and other special guests.
Buhari urged the Board of Directors, management and staff of NLNG, the host communities, the Rivers State Government and other agencies of the Federal Government to continue to collaborate to ensure completion and eventual commissioning 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, and more trains from Nigeria LNG to harness the over 600trillion cubic feet of proven gas reserves we are endowed with.
“Let me use this opportunity to commend the shareholders of NLNG, the Federal Ministry of Petroleum, NNPC and the NCDMB and other stakeholders for very exemplary collaboration which has culminated in this great opportunity for Train 7.
“I want to thank the foreign investors for the confidence reposed in Nigeria, and assure all Nigerians and potential investors in the oil and gas sector that the Federal Government will continue to create the enabling environment in order to develop the sector and bring the full benefits of gas closer to our people,” he said.
Going down memory lane, Buhari recounted that the story of Nigeria LNG was one he had been “passionately associated with during the formative years of the project.”
He said, “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 organization transform from just a project in the early 90s to a very successful company with over 20 years of responsible operations and a steady supply of Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG) and Natural Gas Liquids (NGL) into the global market.
“This is proof that Nigeria has a great capacity to deliver value to the world by harnessing our natural resources”.
The President, therefore, congratulated NLNG and its shareholders – NNPC, Shell, Total, and Eni for proving that a Nigerian company can operate a world-class business safely, profitably, and responsibly.
Praising the consortium for clearly setting the stage upon which Nigeria’s vast gas resources would continue to grow well into the future, Buhari added that 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 industrialized nation with gas playing the key role as a revenue earner, fuel for industries, and necessary feed for petrochemicals and fertilizer plants,” he said.
The President also expressed delight that the NLNG as the pioneer LNG company in Nigeria, has conscientiously proven the viability of the gas sector over the years, currently contributing about one percent to Nigeria’s GDP.
“NLNG has generated $114billion in revenues over the years, paid $9billion in taxes; $18billion in dividends to the Federal Government and $15billion 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 to start with this Train 7 project but also positioning Nigeria to thrive through the energy transition,” he said.
In his address, the Minister of State for Petroleum Resources, Chief Timipre Sylva, described NLNG as a “blessing to the nation”, noting that it has positively complemented crude oil exploration by monetizing flared gas and yielding huge revenue to the nation and investors.
Sylva added that since NLNG became operational in 1999, the nation has recorded a drastic reduction in operational flare status from 65 per cent to 12 per cent.
“I boldly say that the groundbreaking 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.
The Executive Governor of Rivers State, Chief Nyesom Wike, applauded the shareholders, NLNG’s Board of Directors, and the company’s management for keeping the Train 7 dream alive.
He said the state government considered the project as a key economic enabler and committed to supporting both the project and the company.
In his welcome remarks, the Group Managing Director of NNPC, Mr. Mele Kyari, commended the Federal Government for supporting the project and called for stakeholders’ support for the project. He added that support for NLNG will lead to immense benefits to Nigerians.
Also speaking, the Managing Director and Chief Executive Officer of NLNG, Anthony Attah, said Train 7 will increase NLNG’s overall capacity to 30million tonnes per annum (mtpa) from the current 22million mtpa, while further adding immense value to the nation and the people.
Attah noted that the project would stimulate the inflow of about $10billion FDI 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.
The company took the Final Investment Decision (FID) for the project in December, 2019.
It proceeded to sign the Engineering, Procurement, and Construction (EPC) Contracts with the SCD JV Consortium, comprising affiliates of Saipem, Chiyoda, and Daewoo, on May 13, 2020.
Train 7 Project is in fulfilment of NLNG’s vision of “being a global company, helping to build a better Nigeria.”
The project, upon completion, will support the Federal Government’s drive to generate more revenue from Nigeria’s proven gas reserves and further reduce gas flaring in the country’s upstream oil and gas industry.
The project is scheduled to span approximately five years.
NLNG is an incorporated Joint-Venture owned by four Shareholders, namely, the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N.V. S.àr.l (10.4%).
It would be recalled that Buhari’s flag-off of the project came amid uneasy calm trailing last Thursday’s protest by the people of host Finima community.
The Finima picketing of NLNG in a peaceful protest was dislodged by suspected violent Bonny youths, resulting in injuries and burning of property belonging to Finima people.
The leaders of Finima community had, during the protest, vowed to fight on for recognition as lead host community and not to be treated as appendage of the larger Bonny Island.
The Spokesman for Finima and ex-Mobil staff, Dagogo Lambert Brown, told newsmen following the fracas, that led to nine injuries and property destruction that the alleged attempt by men from Bonny to intimidate them with violence would rather make Finima more determined.
“We are not fighting kingship issues or kingdom matters. We are not fighting Bonny people. We do not understand why they would come and attack their brothers who were conveying their justified grievances to the NLNG”, Brown stated
Finima elders also called on Federal Government, the Nigeria National Petroleum Corporation (NNPC) and the NLNG to intervene before things get out of hand, vowing they would not surrender their right to their ancestral home acquired to mount the gas trains and other sensitive facilities on the island if they won’t enjoy host benefits.