Oil & Gas
NIGERIA LNG Limited, NLNG, is planning to reinforce the Domestic Liquefied
Petroleum Gas, LPG, market with a new LPG vessel which will boost volume
and availability. It will also consolidate the company’s contributions to deepen
the domestic LPG industry and increase consumption of the clean gas.
The new LPG vessel will be built by E.A Temile and Sons Company Limited, a
wholly Nigerian company, under a contract with Hyundai Mipo Dockyard,
South Korea and chartered to NLNG.
At a contract signing ceremony between E.A Temile and Sons Limited and
Hyundai Mipo Dockyard in London on Thursday, the Managing Director and
Chief Executive Officer of NLNG, Tony Attah, remarked that the signing
ceremony was ground-breaking for NLNG because it supports the company’s
aspiration, firstly, to further help develop the DLPG market and to promote the
growth of indigenous companies and Nigeria’s economy.
“NLNG remains the single largest supplier of Liquefied Petroleum Gas (LPG)
(over 50%) in Nigeria and looks to enable its expansion in future. We produce
the LPG in our Plant in Bonny, Rivers State, Nigeria, and transport it by sea to
Lagos from where it is distributed to every part of the country. This assures the
product availability, accessibility, and affordability which is central to us as a
company. NLNG’s domestic LPG intervention scheme aligns with its business
focus of bringing energy to the world and helping to build a better Nigeria.
“A World Health Organisation (WHO) Report on Household Air Pollution and
Health published in May 2018, affirms that, about 4 million people die
prematurely annually from illness attributable to air pollution from inefficient
cooking practices using solid fuels and kerosene. And local data suggests that
about 100,000 women and children die in Nigeria annually from the same
causative factors. We believe that the expansion and strengthening of the
DLPG market can help to stem this tide in Nigeria,” he said.
On NLNG’s contribution to Nigerian Content, he stated: “We work closely with
the Nigeria Content Development Monitoring Board to ensure compliance
with the Nigeria Oil and Gas Industry Content Development, NOGICD, Act
2010, consequent upon which we signed a Business to Business Service Level
Agreement, SLA, with NCDMB in June 2017, the first of its kind in the
relationship between the oil and gas industry operators and NCDMB in Nigeria.
“Examples of our Nigeria Content initiatives implementation include BGT Plus
Project where over 80,000 metres of cable, manufactured in Nigeria by Nexans
Kabelmetal, as well as 9,000 pieces of anodes, produced by Metec WA, were
exported to South Korea for utilization in the construction of 6 new Dual Fuel
Diesel Engines (DFDE) LNG carriers.
“PCMN/Berger Paints Nigeria Limited exported over 400,000 litres of Paints and
Coatings and IO Furniture/Vina produced and exported movable furniture to
South Korea, all for the construction of the LNG carriers. In addition, Nigerians
were involved in the project at the Hyundai Heavy Industries (HHI) and
Samsung Heavy Industries (SHI) shipyards in South Korea.
“The benefitting indigenous companies, some of whom were exporting their
products for the very first time, earned revenues in excess of $10 million and
international reputation as exporting companies. All these are testaments that
great things can truly happen once we set our minds to achieve them– same
way we believe and are working assiduously towards achieving the FID for
NLNG T7 which in addition to raising our LNG production capacity by 36 percent,
from 22,000 million tonnes per annum to 30,000 million tonnes per annum, also
has capacity for 1.0 MTPA in the DLPG market,” he remarked.
Also at the ceremony, the Executive Secretary of Nigerian Content
Development and Monitoring Board (NCDMB), Simbi Kesiye Wabote,
remarked that the signing ceremony was a manifestation of the local content
journey in the LPG sector, adding “I commend NLNG for this bold
endorsement of our local capacities and capabilities. It is certainly a
confidence building move across board and I expect several operators and
service providers to get inspirations from this milestone event and see the
possibilities in our local content practice rather than the difficulties.”
The 23,000 cubic metres vessel will be delivered in 2020.
NLNG is owned by four shareholders, namely, the Federal Government of
Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC
(49 percent), Shell Gas B.V. (25.6 percent), Total Gaz Electricite Holdings France (15 percent), and Eni International N.A. N. V. S.àr. l (10.4 percent)
– June 25, 2018 @ 1:10 GMT |
Tags: NLNG to boost Domestic LPG Supply with New Vessel
