NLNG raises asset base by $14 billion
Nigeria LNG Limited (NLNG) has so far invested additional $14 billion on assets, made up mainly of plants and equipment, financed largely by the company’s shareholders, with 51 per cent stake by International Oil Companies (IOCs) and 49 per cent belonging to the country through the Nigerian National Petroleum Corporation (NNPC).
The company, which made this disclosure in its facts and figures on NLNG 2015, made available to The Guardian on Monday, stated that it has contributed to national wealth and economic wellbeing by paying all applicable taxes and tariffs.
Specifically, the company said that its corporate income tax amounted to about N220 billion in 2014, thus making it the highest tax payer in Nigeria and Sub-Saharan Africa.
It added that the company has also over the years paid dividends of almost $30 billion, out of which 49 per cent went to the Federal Government through NNPC.
The company added: “NLNG utilizes gas that would otherwise be flare, thus making significant contributions to the nation’s income while helping to protect the environment. Payment to Joint Venture (JV) feedgas suppliers from inception till date is almost $21 billion; 55 to 60 per cent of this amount goes to the Federal Government of Nigeria via its shareholding in NNPC.
“NLNG has converted about 133 Bcm (billion standard cubic metres) or 4.68 Tcf (trillion cubic feet) of associated gas to exports as LNG and natural gas liquids, thus helping to reduce gas flaring by upstream companies. Flares also act as safety systems for non-waste gas and are released via pressure relief valves, when required, to ease the strain on equipment”.
It said that with six trains currently operational, the entire plants are capable of producing 22 million tonnes per annum (mtpa) of LNG, and five mtpa of NGLs and condensate from 3.5 billion standard cubit feet per day of natural gas intake.
It disclosed that plans for building Train Seven that will lift the total production capacity of the plants to 30 mtpa of LNG are currently progressing with some preliminary early site preparation work initiated.
The company said that further work on the Train Seven plant is currently awaiting Final Investment Decision by shareholders.
It added: “The plant has rapidly and successfully made the transition from a construction project to a stable production operation with a robust framework of people, processes, systems and organization, and relentless focus on operational excellence and continuous improvement.
“In addition to regular maintenance of the assets to assure integrity and reliability opportunities are continuously sought to debottleneck the plant, incorporating proven techniques and processes to maximize production, and manage human interferences and imports. The plant has also embarked on a structured programme of asset rejuvenation to extend the plant life beyond the current design life”.