WHY did the Federal Government set up the
The government set up NLNG for a number of reasons, chief of which was to harness the potential of natural gas resources for growth. To achieve this goal, the government ensures that the firm produces and exports two products - the
Other reasons advanced by the government, for setting up NLNG, include creation of jobs, improving domestic consumption of
The NLNG, since inception in 1989, has been fulfilling its mandates of exporting liquefied natural gas to developed markets, as well as providing the government with huge revenues.
The country is blessed with proven gas reserves of about 200 billion cubit feet and unproven gas reserves of 600 trillion cubit feet. Based on this, the government does not need to worry on how to survive, once it focuses on how to develop the sector ore.
What delayed the implementation of Train 7 project, which the Federal Government, is leveraging to improve gas exports and further improve the country's earnings?
The delay in the implementation of Train 7 is caused by many factors such as funding, failure by major partners in NLNG to reach a consensus on how and when to invest in Train 7, and refusal by NLNG to take Final Investment Decisions (FIDs) as at when due, among others.
The partners are the sharehold-ings are
Despite this, the partners were unable to provide an estimated
Secondly, getting partners in NLNG to approve Train 7 is another problem facing the project.
Thirdly, is the issue of building new plants and getting bigger markets that are bigger enough to withstand the capacity of Train 7, is a problem.
All these things cannot be done in hurry. They need to be carefully carried out. The designs and configurations of the plants need to be done with caution. The reason is because gas business is a very sensitive one, which requires a lot of patience from the management of NLNG. So, NLNG needs to take necessary precautions, if its wants to build and sustain a virile gas market.
These elements are important to the successful implementation of Train 7 or any other projects, and once they are not there, it would be difficult for the owners of NLNG to take Final Investment Decisions (FIDs) on Train 7.
Often times, many Nigerians blame either the Federal Government or NLNG, for delaying the process of implementing Train 7. The reason is because many do not understand the intricacies involved in providing a vehicle for gas exports, and as a result, erroneously heaps blame on the government for lapses, that may occur in the process of exporting gas abroad.
How come the gaps between the first six trains and the seventh one that is being implemented by NLNG?
Permit me to answer your question this way. Life must be taken in its strides, if one would enjoy it. You must learn to handle things systemically. You allow the one you did to mature, before you add another one to it. The same rules are applicable to businesses. This might be the reason, why NLNG delayed for 12 years before it went ahead with the expansion of its LNG capacity by an additional eight million metric tonnes (MTPA). By this, I' m talking about 7train, which is eight million metric tonnes bigger than the Trains 1, 2, 3, 4, 5, 6.( Remember, the six trains have a combined capacity of 22 million metric tonnes of
When will Train 7 come to fruition?
Train 7 will be completed very soon. I have no doubt about that. The reason is because the management of NLNG has taken some positive steps, in this regards. The firm has taken care of some preliminary aspects of the project. For instance, NLNG has signed Letter of Intent (LoI) for Train 7, months ago. By
What is the capacity of Train 7 project?
The project is expected to deliver 8mllion metric tonnes of
How many jobs will Train 7 creates for the country?
The six trains have provided thousands of direct and indirect jobs in the country. Nigerians have acquired skills, following the completion of the six trains' years ago. Train 7 is expected to create more than 40,000, which is quite a laudable achievement for the country.
Will the expansion of
Of course, it would open door for more investors in
How has NLNG impacted on the nation's economy?
NLNG has impacted positively on the economy in many ways. The firm has assisted in boosting the earnings of the Federal Government, by generating revenues in excess of
Out of this, the Federal Government, through the
How much has NLNG generated from exports?
I can say precisely the amount of money, which generated from exports of
Who are the buyers of
There is information on the new buyers of
Being a former managing director of NLNG, you should have access to more information about the firm.
Cuts in That is what you think. But in reality, it is not. I access information from public domain, the same way you get your own.
How can be done to revive Olokola and
I do not like to talk about the two projects. The reason is that they are sensitive and prone to crises. The Federal Government would like to state its position, which may be contrary to the position, which I and other observers in the Nigerian energy chain is holding. Those two projects enjoyed equity participation from NNPC. The government, I suspect does not want to make additional investment. These two projects are shaky, while NLNG is not. We just spoke about the issue of establishing NNLG by the government. How many years ago, in which NLNG was set up by the government? 30 years old. That is from 1989 to 1999 and NLNG is still strong.
But must government continue to waste tax payers' money, in view of the colossal amount of money invested in Brass and Olokola LNG.
Well, I do not know how much was invested in the two projects. Their owners are yet to invest in plants and pipelines, as far as I know. It is only the Brass LNG that has done its engineering works.
But I do not know the levels the two companies are. I do not know whether we can say the two projects are really wasted, because FIDs have not being done on the two.
It is at that point, you design, select the contractors, you sign agreement to supply gas to the two companies. Those two projects are not anywhere near that area. We cannot be really say the two projects are abandoned. But obviously, some money must have been spent on the two projects.
Is there any other way, in which, gas can help grow the nation's economy?
There are many ways, in which oil and gas companies can stimulate the growth of the economy.
Have you heard of
To be honest with you, NLNG's has limited roles to play in this case. The reason is because NLNG was set up to export gas, and not to give gas to thermal plants, in order to generate electricity. There are oil firms, assigned to carry out that those functions.
For instance,
On gas flaring,
But are there other ways NLNG can meet the needs of the domestic market?
The firm produces
© Pakistan Press International, source