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NLNG begins gas export this week

By on July 15, 2013

The management of the Nigerian Liquefied Natural Gas Limited (NLNG) has concluded plans to deliver liquefied natural gas to major export terminals in Spain, Italy, France and Turkey this week.

This followed the out-ofcourt settlement concluded with the Nigerian Maritime Administration and Safety Agency (NIMASA) over the payment of about $140 million outstanding taxes and levies last week.

Investigations showed that NIMASA, which detained NLNG vessels, has already released them to start operations.

The planned export is expected to boost global supply as the Bonny-basedplant remains the secondlargest liquefaction site after Ras Laffan in Qatar.

NLNG General Manager, External Relations, Mr. Kudo Eresia-Eke, who confirmed the development, stated that NLNG would pay outstanding sums to NIMASA in return for the immediate release of its vessels.

He said: “The payment has already been made and the NIMASA blockade consequently lifted as at about 10am today (Saturday). Furthermore, NLNG agreed to discontinue all its contempt proceedings against all the parties.

“The Federal High Court (FHC) upheld its jurisdiction that was challenged by the Attorney-General of the Federation (AGF) as well as Global West (GW) and NIMASA in the suit filed by NLNG seeking an interpretation of the NLNG Act and the legality of taxes being demanded by NIMASA.”

The commencement of export is expected to generate foreign exchange to major shareholders, including the Federal Government, which has 49 per cent equity through the Nigerian National Petroleum Corporation, NNPC.

Others such as Shell Gas BV, Total LNG Nigeria Limited, Eni International and N.V.S.arl that have 25.6per cent, 15 per cent and 10.4per cent will also benefit from the export.

The dispute started on May 31, this year when NIMASA blocked access to the nation’s major loading terminals at Bonny Island, following alleged refusal of NLNG Limited to pay appropriate taxes and levies.

Reacting, the NLNG argued that its action was guided by the provisions of the Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act, which exempts it from such levies and charges.