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NLNG generates over $50bn for the Nigerian economy in 14 years

By BusinessNews Staff on June 10, 2014

The Nigeria Liquefied Natural Gas (NLNG) Limited has generated over $50billion for the Nigerian economy since October 1999, when it exported its first LNG cargo.

Speaking at the company’s book launch on ‘2014 Facts and Figures’ at the weekend, the Managing Director of the company, Mr. Babs Omotowa, said the company exported its 1,000th cargo in December 2006, 2,000th cargo in October 2010 and 3,000th in January this year.

He said in diversifying the country’s revenue base and monetising gas resources in Nigeria, NLNG now owns $14 billion of assets in Bonny Island of Rivers State.

According to him, the company paid $13 billion in dividends with another $11 billion earned as feed gas sales revenue, while over $10 billion expenditure was spent in the local economy on goods, services and salaries of thousands of staff employed.
He also stated that the company paid a corporate income tax of over N200 billion yearly, while the Rivers State Government earns over N6 billion yearly from personal income taxes.

Omotowa further disclosed that Bonny Local Government Area of the state earns over N88 million yearly as tenement rate from NLNG.
He noted that the company had been the arrow-ahead in the federal government’s quest to eliminate gas flaring and to derive value from the country’s 187 trillion cubic feet of a proven gas reserves.

“By so doing, this will accounts for seven per cent of the global LNG supplies which used to be 10per cent. Nigeria LNG’s near term expansion plans which include a construction of seventh train to complement the existing six- train structure that when in full operation, will up the ante of the company’s total production capacity to 30 million tonnes per annum ( MTPA) of LNG. Over the years, the company has committed to a 67 per cent increase in volume supplied to 250,000 tonnes of Liquefied Petroleum Gas (LPG). And this has increased the benefit in environmental (deforestation), health (respiratory), kerosene cost about $3.5billion subsidy and increase in investments and job creation (improvement in cooking gas value),” he explained.

Omotowa further stated that the company’s senior management team was 100 per cent Nigerian while the total workforce is 95 per cent Nigerian.

He disclosed that the company has 23 LNG vessels which constitute the largest shipping fleet in the country, adding that out of the 23 vessels, 13 are owned by NLNG’s subsidiary, which is Bonny Gas Transport, while the 10 others are long term leased vessels.

“The BGT provides vessels for the delivery of products to buyers all over the world. All 23 ships load at NLNG Terminal in Bonny for delivery in Europe, South America, Gulf of Mexico, United State, Middle East and Asia. By so doing, many job opportunities platform has been created for many Nigerian seafarers through shipboard placements on BGT vessels,” he added.

The NLNG boss also stated that the NLNG Ship Management Limited (NSML) was responsible for resourcing, developing and manning shipboard personnel for BGT Ships.

To pursue what he called the Nigerianisation plan, Omotowa said the company had entered into partnership with Hyundai and South Korean companies to train Nigerian captains and cadets in order to be able to compete internationally.
According to him, it was agreed that 600 Nigerians, including 180 people from the Niger Delta, will be trained but currently, 60 are undergoing training.

“NSML has also developed in the area of manpower for the maritime industry through its support for Maritime Academy of Nigeria, Oron in Calabar. To add to this, NLNG has trained over 500 officers and in ratings and has employed over 200 graduate of Maritime Academy, Oron,” he said.

[This Day]

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