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FG’s Inaction Threatens $37bn LNG Projects
The Federal Government has been accused of undermining the take-off of the $12 billion Nigeria LNG’s Train 7, $10 billion Olokola LNG and the $15 billion Brass LNG projects.
A business intelligent firm, Oxford Business Group, had in a recent report estimated the total cost of the three LNG projects at $37 billion, and experts had expressed worry that continuous political interference from the Federal Government would further jeopardise these projects.
Though the $12 billion NLNG Train 7 project is considered as the most economical of all the three LNG investments, sources identified government interest in Brass NLNG located in Bayelsa State as the factor delaying the entire $37 billion LNG projects.
The Federal Government, through the Nigerian National Petroleum Corporation, owns 49 per cent each in NLNG and Brass LNG, and experts have said the President Goodluck Jonathan-administration might be more disposed to having Brass LNG take off before NLNG’s seventh train.
The Chief Executive Officer/Managing Director, NLNG, Mr. Babs Omotowa, had recently said $10 billion had been lost to the delay in reaching a final investment decision for the train seven project.
When completed, he said the seventh train would enable the company to add some eight million metric tonnes to its current production capacity and increase annual output to 30 million metric tonnes.
He said, “The Train 7 is potentially capable of mopping up and exporting some more of the currently flared gas, and yielding an estimated $2.5 billion in revenues.
“On balance, it is clear to us at NLNG that Train 7 is an enterprise which all shareholders and stakeholders should support and pursue with vigour, for the simple reason that its outcome will be good for Nigeria and for our business,” he said.
The NLNG boss, however, did not give specific details as to when the FID for the seventh NLNG train would be taken.
NLNG is jointly owned by the Nigerian National Petroleum Corporation (49 per cent), Shell (25.6 per cent), Total LNG Nigeria Ltd (15 per cent) and Eni (10.4 per cent).
Backed by NNPC (49 per cent), Agip/ENI (17 per cent), Total (17 per cent) and ConocoPhillips (17 per cent), the $15 billion Brass LNG facility was planned to consist two trains with a capacity of 5.5m tonnes per year (with an additional two-train option).
The FID on the Brass LNG project suffered major setbacks when ConocoPhillips, in 2013, announced the intention to divest its Nigerian assets.
“As a result, Brass LNG is now seeking third-party investors to take on the remaining 17 per cent stake” OBG said.
The source said, “With the exit of ConocoPhillips from the Brass LNG project, it has been challenging finding who will replace ConocoPhillips and take over its shareholding. The shareholding of ConocoPhillips has been marketed globally and no company has shown an interest.”
Before ConocoPhillips’ exit, the Chairman, Board of Brass Liquefied Natural Gas, Dr. Jackson Gaius-Obaseki, had expressed the hope that the project would take off on or before the end of the first quarter of 2013.
It was, however, not to be as the exit of ConocoPhillips created a vacuum that must be filled before the project could take off.
The FID on the Brass LNG project had suffered several postponements as it should have been taken in December 2006 and later in December 2008. It was also postponed to the first quarter of 2011 with construction expected to start by mid-2011. It was later postponed in 2012 to the first quarter of 2013.
Former President Olusegun Obasanjo, in 2006, facilitated the $10 billion Olokola Liquefied Natural Gas project overlapping the states of Ondo and Ogun and adjacent to the OK-Free Trade Zone under development.
The 12.6m-tonnes-per-annum facility, consists of four trains backed by the NNPC (49 per cent), Chevron (19 per cent), Shell (19 per cent) and the United Kingdom’s BG Group (13 per cent).
A Final Investment Decision was delayed after BG pulled out of the project in May 2012.
OKLNG’s fate was further put on hold when Chevron Nigeria Limited and Shell withdrew from the project.
Chevron had blamed its exit on the lack of progress on the project, eight years after its inception.
The General Manager, Policy, Government & Public Affairs, CNL, Mr. Deji Haastrup, confirmed in a statement that the company effectively pulled out of the project on July 31, 2013. The statement also confirmed that Shell pulled out of the OKLNG project on July 31, 2013.
The source, who reiterated that political interference was one of the major challenges facing the projects, said that OKLNG projects were on the front burner during the Obasanjo administration, but argued that attention shifted to Brass LNG since the former president left office.
Obasanjo, who seemed to have lent credence to this in his recent open letter to Jonathan, said, “some of our development partners were politically frustrated to withdraw from the Olokola LNG project, which happily was not yet the same with the Brass. I initiated them both. They were viable and would have taken us close to Qatar as LNG producing country.
Nigeria, which is the Saudi of Africa in oil and gas terms, is being overtaken by Angola only because necessary decisions are not made timely and appropriately.”
The Mayor of Housing, My-ACE China, has teamed up with a renowned hospital group in Port Harcourt, the Meridian Hospitals, which is in partnership with the Pilgrims Health Foundation, to carry out a one-day medical outreach last Tuesday.
The free treatment scheme took place at Oromenike Government Girls Secondary School in D-Line, Port Harcourt, with over 100 persons accessing free treatments, including free eye-glasses and booking for eye surgeries.
Other areas of treatment included general health consultations and treatment; blood pressure and sugar level testing; malaria testing and treatment; free prescriptions; preventive health talks focusing on hygiene, maternal health, and nutrition.
The scheme was conducted under the theme: ‘Bringing Healthcare to the Community.’
Newsmen who visited the venue of the scheme found that enthusiastic beneficiaries had thronged the area as early as 7a.m. After setting up, the medical team began attending to the patients.
Mr. Jerry Onwuso, a 63-year-old patient, who was first to see eye doctors and got eye glasses and drugs, told newsmen that he was pleased with the medical intervention.
He made it clear he did not pay any money to get all the treatments and glasses, and pleaded that the scheme be sustained.
Another patient, Loveth Sam, expressed satisfaction with the scheme and appealed to the sponsors to continue to increase the benefits.
Throwing some light on the scheme, Mr. China said he worked in Meridian Hospitals as a Lab. Scientist 19 years ago, but resigned because he could not bear to see patients struggling for life because they had no money to pay for treatment.
He said he came back to help extend free medical treatment to the less privileged.
Sources said China was always having issues with the hospital authorities when he would insist on critical patients being allowed to be treated first, with or without money.
Years later, China, who now goes by a brand name, the Mayor of Housing, returned to the Meridian Hospital headquarters to support free medical scheme.
He also went the next day to the headquarters of Meridian, after the one-day medical outreach, to give cash gifts and palliatives to workers he met when he worked there but had remained in service since he left.
He encouraged them to continue to give their all to humanity through the hospital. The Mayor of Housing called most of them by name and a cloud of emotions descended on them during the reunion.
Appreciating the gesture, the Founder and Chief Medical Director, Dr. Iyke Odo, said China had always manifested hard-work, ambition, and impulsive giving.
According to him, the then young bright boy was full of humanity, kindness, love, and made friends easily, adding that “not everybody that gives is a giver. The difference is that givers are given to give.”
Dr. Odo used the opportunity to call on governments to review Nigeria’s health insurance system and make it work in Nigeria to save lives.
He said it was sad watching critically sick persons abandoned because they did not have money for treatment.
He also condemned harsh tax and electricity tariffs whereby facilities like his now pay N12 million instead of N500,000 few years back.
He wondered why hospitals were being made to pay tariffs like oil companies, citing many other countries where medical facilities were placed on low rates and tariffs so they could charge moderate fees from patients.
The Renewed Hope Initiative in conjunction with the Rivers State Government has empowered 500 elderly citizens in Rivers State with financial support of N200,000 each.
The empowerment programme was part of activities to celebrate the third anniversary of the Renewed Hope Initiative Elderly Support Scheme RHIESS, a social investment policy initiated by the First Lady of the Federal Republic of Nigeria, Senator Oluremi Tinubu.
Speaking at the event which held at the Government House, Port Harcourt, recently, under the theme, ‘Finding Joy in Old Age,’ Senator Tinubu said the gesture which has become traditional since 2023 was a mark of gratitude in recognition of the invaluable contributions of the senior citizens to nation building.
The First Lady who was represented by the wife of the Rivers State Governor and State Coordinator of the Renewed Hope Initiative, Lady Valerie Fubara, said the scheme was to “support two hundred and fifty (250) vulnerable elderly citizens aged 65 and above in all the 36 states of the federation, the Federal Capital Territory, and veterans from the Defence and Police Officers’ Wives Association (DEPOWA) totalling 9,500 selected beneficiaries across the nation.
She urged the beneficiaries to engage in activities that will make them find joy in old age.
“I encourage you to continue playing your part by staying healthy and active, nurture both your body and mind through regular exercise and meaningful engagement,” Senator Tinubu advised.
On her part, Lady Fubara said the State Government through the magnanimity of the governor, Sir Siminalayi Fubara, has increased the beneficiaries of the programme from 250 to 500.
She restated the commitment of the State Government towards provision of social welfare and improving the standard of living of the elderly in the State.
Also speaking, the Executive Secretary, Rivers State Contributory Health Protection Programme (RIVCHPP), Dr Vetty Agala, said the State Government has through the Health4allrivers Initiative, introduced free medical care for senior citizens in the State, in line with the Renewed Hope Initiative.
