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Tuesday, November 7, 2023
The ongoing development of the $5 billion NLNG Train-7 project being undertaken by Nigerian Liquefied Natural Gas (NLNG) on Bonny Island, Nigeria, has reached 52% and currently engages 8,300 Nigerians with diverse skill sets.
These facts emerged on Friday as the Management of the Nigeria LNG Limited led by the Managing Director, Dr. Philip Mshelbila held an engagement session 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.
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 will see the roll out of tender opportunities from the Nigeria LNG Ltd on the E-Market electronic platform, thereby implementing a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. Section 106 of the NOGICD Act defines the “Oil and Gas E-Market Place” as a virtual platform for buyers and sellers of goods and services in the oil and gas industry that allows for speedy and transparent transactions.”
Mshelbila, commented that the relationship between his organization and the NCDMB has been conscientiously nurtured over the years, with both parties striving ceaselessly to fulfil statutory obligations. “We recognize the role of the regulator and are happy you recognize that of the operator and the need for regular engagement.”
He acknowledged the crucial role played by the Board in the take-off of the Train-7 project and assured of the company’s resolve to stretch its local content practice beyond mere compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. He said the company was committed to engaging in initiatives that would boost in-country productivity and economic diversification. “We cannot have a better Nigeria unless we develop the capacities of Nigerians,” he stated, restating the vision of his company to be “a globally competitive LNG company, helping to build a better Nigeria.”
He bemoaned the difficulties the company is facing in getting adequate gas supply and the resultant under-production by its six plants to below 50 percent of their total installed capacity.
He remarked 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 Nigeria LNG, 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 Nigeria LNG Board of Directors had also approved for 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.
Source: Nigerian Content Development and Monitoring Board
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