…Train-7 Project reaches 52% completion, Employs 8,300
…NCDMB, NLNG Sign E-Market Place Agreement
The General Manager, Production, the Nigeria Liquefied Natural Gas (NLNG), Engr. Nnamdi Anowi, has said that over 5,770 LNG cargoes have been delivered as of September 2023 and that over 500,000 tons of liquefied petroleum gas (LPG) have been produced and sold to markets overseas and in Nigeria.
Speaking on the milestones of the company, he added that NLNG has as its core areas of operation – Liquefaction, Transmission, Transportation, Marketing and sales.
He spoke during an engagement session of NLNG led by its Managing Director, Dr. Philip Mshelbila with the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, at the gas company’s operational base at Finima, Bonny Island, according to separate statements on Monday by General Manager, External Relations and Sustainable Development, NLNG, Andy Odeh, and NCDMB Corporate Communications.
The high-level engagement was part of the three-day Nigerian Content Stakeholders Retreat. The forum provided a platform for the two oil and gas industry leaders to sign an agreement on the Oil and Gas E-Market Place.
The agreement is expected to see the rollout of tender opportunities from the NLNG Ltd on the E-Market electronic platform, thereby implementing a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
One of the statements revealed that the ongoing construction of the $5bn Train-7 project being undertaken by the NLNG at Finima, Bonny Island, Rivers State has reached 52 per cent completion and currently engages about 8,300 Nigerians of diverse skill sets.
Mshelbila said while the company appreciates the outstanding contributions of major foreign partners, “we insist on capacity development and knowledge transfer to encourage Nigerian companies to get more involved in the technical processes. We want to see more partnerships with local manufacturers, more empowerment for a competitive edge, more import substitution with locally manufactured spares and parts.”
He bemoaned the difficulties the company was facing in getting adequate gas supply and the resultant under-production by its six plants to below 50 per cent of their total installed capacity.
He said that feed gas to the NLNG plants comes mainly from some its joint ventures (JV) partners, including, Shell Petroleum Development Company (SPDC) Limited, Total Energies and Nigerian Agip Oil Company (NAOC), but their supply pipelines suffer recurrent vandalism, coupled with facility failure and low production from aging wells, resulting in serious disruption of supplies.
The NLNG, he explained, was exploring several options to mitigate the challenge, including partnering with critical security agencies to curtail vandalism on the pipelines and working with their JV partners to increase their gas production.
He added that the NLNG Board of Directors had also approved the company to procure gas from other international and indigenous gas producers in the country, with the goal of enhancing the performance of Trains 1-6.
Mshelbila expressed deep concerns that deepwater gas projects that would provide feed gas for the upcoming Train-7 and other future expansions had not been commenced by the international oil and gas companies (IOCs), despite the significant progress made in the construction of the Train-7 plant.
This situation, he said, could lead to the completion of the plant without gas being available for it to liquefy.
He solicited the Board’s support for the development of the deepwater gas projects, which are critical to keep Trains 1-6 full and provide gas for Train 7 and future expansion plans.
According to Dr Mshelbila, NLNG recognises its pivotal role in shaping the trajectory of local content development in Nigeria and restated that the company’s commitment to Nigerian Content development aligns with its profound belief in Nigeria’s boundless potential which can be unleashed by nurturing and harnessing local talents, Nigerian companies and associated resources, that will in turn help build a stronger, more prosperous nation. This includes technology transfer, given the high-tech plant and operations of the NLNG Plant in Bonny Island.
Wabote said that the E-Marketplace will be a game- hanger, which will enhance the Service Level Agreement (SLA) guiding the relationship between two organisations. He noted that the Board decided to start with NLNG because of the company’s record of excellence. He added that the intention of the E-Marketplace is to increase transparency in the tender process, “remove human interference in business processes, move things electronically and achieve better results”.
He described the Final Investment Decision (FID) and other critical steps that were taken for the Train-7 project taken at the height of COVID-19 as proof of stakeholders’ enthusiasm for the project.
He expressed concern over the challenges of the inadequacy of gas supply and promised to support the company along the lines of approving third-party gas injectors and sanctioning new deepwater gas projects. He added that “most of the marginal operators have also found gas but part of their challenge is where to send the gas.”
He lauded the NLNG for its remarkable success, recalling that at the initial phases of the company’s take-off “the Management level had 90 per cent expatriates and 10 per cent Nigerians.” He added that however, the table has now turned the other way, with the entire Management now consisting of Nigerians.
