Nigeria risks losing $10b FDI to NLNG ‘Train 7’ project’s delay
Nigeria may be on the verge losing about $10 billion Foreign Direct Investment (FDI) to the intrigues that have characterised the delay implementing the ‘Train 7’ project of the Nigerian Liquefied Natural Gas (NLNG).
Oil workers under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), who lamented this imminent huge loss recently urged the Federal Government to set the ball rolling for the construction of the project, which has remained a mirage over the years.
The workers, who were apparently worried about the unnecessary delay of the project, said that the completion of the Train 7 project will also enable Nigeria to end gas flare by harnessing the flared gas for domestic use and for export, and adequately position the company and Nigeria in the competitive global gas market.
Speaking at the 4th Triennial Delegates Conference of the PENGASSAN Branch of the NLNG in Bonny, Rivers State, the Association’s President, Francis Olabode Johnson, noted that Train 7 project was established to further exploit the emerging global market demand for LNG and to remain competitive.
He however warned that there is expected to be a potential drop in global LNG price in 2017, due to competition as there is likelihood of increase in number of suppliers. “We expect that in the face of drop in crude oil price and glut in global crude oil market, LNG would have been another veritable source of revenue and foreign reserve for the government and the company.
“Train 7 completion will definitely increase the company’s share of global market, enhance flare reduction or total flare out, and attract $10 billion Foreign Direct Investment (FDI) with zero cash out from the government.
“Other benefits of Train 7 completion are job creation through the construction of the plant in Bonny and construction of gas pipelines in other communities, increase capacity to meet domestic market demand, and maximisation of the Nigeria Content Development Act through local capacity building,” he said.
Johnson called on the government to give priority to domestic gas utilization over export, enhance gas utilization with full reappraisal of the gas master plan, and adequately fund the NLNG’s operations.
He also urged the government to extract commitment on gas flare-down to a nearest predictable timeline from the oil and gas companies operating in the country and find a lasting and endurable solution to the incessant vandalism of the gas pipelines.
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