Nigeria, partners to decide on $10b NLNG gas project next week
The Final Investment Decision (FID) of the $10 billion worth Nigeria Liquefied Natural Gas (NLNG) train seven project would be taken next week, the Nigerian National Petroleum Corporation (NNPC) said yesterday.
Federal Government’s hope of raising about $9 billion revenue and over 10,000 jobs from the project was also rekindled yesterday as the company and other parties in the project sealed first basic 20-year term of Gas Supply Agreements (GSAs) with major producers.
The company equally signed the second basic 10-year term of GSAs for its Trains one, two and three with joint ventures, which include Shell Petroleum Development Company of Nigeria Limited (SPDC), Total Exploration & Production Nigeria (TEPNG) and Nigerian Agip Oil Company Limited (NAOC).
The current development on the train seven project, which is expected to ramp up NLNG’s production capacity from 22 million Tonnes Per Annum (MTPA) to around 30 MTPA, according to the Group Managing Director of NNPC, Mele Kyari, is an indication that all is set for the take-off of the project.
Kyari, who spoke at the event, said it would boost the Federal Government’s revenue by $9 billion and generate about 10,000 direct jobs and 40,000 indirect jobs to ease the youth unemployment challenge in the country.
Country Chairman of Shell Group of Companies in Nigeria and Managing Director of Shell Petroleum Development Company (SPDC), Osagie Okunbor, urged the partners to look beyond train seven, adding that it was time to move into action.
Managing Director of the Nigerian Petroleum Development Company (NPDC), Mansur Sambo, said he was excited at the opportunity of the company joining the elite club of gas suppliers to NLNG and pledged the company’s commitment to meeting the terms of the agreement.
Managing Director of Oando Plc, Wale Tinubu, on his part, expressed gratitude to the Federal Government for creating policies that encouraged indigenous companies like his to join the league of gas suppliers to NLNG and thanked the NNPC GMD for his leadership and support.
Speaking on the buyers’ side of the transaction, the Managing Director of NLNG, Tony Attah, described the event as a great moment for Nigeria as the gas supply would help consolidate Nigeria’s position in the global NLNG market.
He, however, stated that more needed to be done to get the country to “fly on the wing of gas” in the face of the changing global energy dynamics, adding that NLNG was ready to build more trains if the gas producing companies could supply the gas required.
No comments yet