NLNG Generates $85 Billion in 15 Years

Fri, Jun 26, 2015

By publisher

2 MIN READ

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THE Nigeria Liquefied Natural Gas Company Limited, NLNG, a joint venture project between the federal government and foreign oil majors in the country, has generated $85 billion from exports since its inception 15 years ago. Babs Omotowa, chief executive, NLNG, said, “For us, it has been a success story. Between 1999, when we came on stream and now, we have realised some $85 billion from exports of LNG to buyers in Europe, America and Asia.”

The AFP quoted Omotowa as saying that the company, which was set up to harness Nigeria’s vast natural gas resources and produce liquefied natural gas for export, has also paid billions of dollars as tax to the state. “Just a few days ago, we paid $1.6 billion to the government as tax and this will go a long way to assist the new government in solving some of its problems,” he said.

Meanwhile, the company is sponsoring the construction of the first major ship yard in Africa’s biggest economy at the cost of $1.5 billion, in its attempt to turn the country into a hub for maritime operations on the continent. Nigeria is the world’s eighth biggest crude oil producer and Africa’s top oil exporter but it does not have a drydock for maintaining and repairing large crude oil vessels, a major drawback for carriers sailing to the country, NLNG spokesman, Tony Okonedo, told Reuters.

Only South Africa had such a facility on the continent, Okonedo said, meaning that ships travelled a long distance for repairs. Nigeria has two facilities that can only accommodate small vessels. Okonedo said Samsung Heavy Industries and Hyundai Heavy Industries had both made a $30-million commitment towards the construction of the facility, which would be located in Badagry, Lagos. “It could potentially be used to transport the 2.5 million barrel of oil a day in crude oil business in Nigeria,” Okonedo said.

— Jul 6, 2015 @ 01:00 GMT

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