Govt earns N220 billion from NLNG in 2014
The Federal Government has earned about N220 billion from the Nigerian Liquefied Natural Gas (NLNG) in 2014, representing about 5 per cent of the national revenue.
The Managing Director, NLNG, Babs Omotowa, who disclosed at the official lunching of the Facts and Figures on NLNG 2015, in Lagos yesterday, said the amount which represent its corporate income tax in the year, has positioned the company as the highest tax payer in Nigeria and Sub-Saharan Africa during the period.
However, he said it has concluded arrangement to float a new Ship Repair facility in Badagry area of Lagos state. The facility, according him, is expected to bridge the gap created by the absence of an operational dockyard to cater for the repair and maintenance of Very Large Crude Carriers (VLCC), LNG carriers, large and medium size carriers, drilling rigs and support vessels.
Omotowa said the choice of Badagry was made following a feasibility study that was carried out at Onne, Bonny, Olokola, Badagry, Ogogoro Island and Ladol among others.
“Currently, a Special Purpose Vehicle (SPV) that will manage the development of Badagry Ship Repair and Marine Engineering Limited (BSME) is being put together,” he said.
Meanwhile, the delayer train seven project of the NLNG may have not received a green light yet, as the managing director declared that the project is still awaiting Final Investment Decision (FID).
“NLNG’s 8.4 million tonne per annum (mtpa) Train 7 project, which will raise the liquefaction capacity to 30.4mtpa, is now awaiting FID. SPAs (Supply and Purchasing Agreement) have already being made with five buyers,” he said.
Omotowa however assured that the NLNG which currently delivers about seven per cent of the global LNG supply would continue to consolidate its position as one of the largest producers and exporters of LNG in the world.
NLNG, according to the Fact and Figures, has converted about 133 billion standard cubic meters (Bcm) or 4.68 trillion cubic feet of associated gas to exports as LNG and Natural Gas Liquids (NGLs), thus helping to reduce gas flaring in the country.
The document also stated that the company’s payment to joint ventures feedgas suppliers from inception till date is almost $21 billion of which 55-60 per cent of this amount goes to the Federal Government via its shareholding in Nigerian National Petroleum Corporation (NNPC).
“NLNG has over the years paid dividends of almost $30 billion, out which 49 per cent went to the Federal Government,” it added.