Home Oil & Gas NLNG generates gross $108 billion income

NLNG generates gross $108 billion income

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The Nigeria Liquefied Natural Gas (NLNG) said it has generated about $108 billion in revenue since it started operation about 21 years ago, while giving out about $35 billion as dividends to shareholders.

General Manager, External Relations and Sustainable Development, Nigeria Liquefied Natural Gas (NLNG), Mrs Eyono Fatayi-Williams who spoke on behalf of the managing director of the company while briefing members of the House of Representatives Committee on Gas also said that Nigeria has the potential of becoming the 4th largest producer of proven gas if the over 600 trillion cubic feet of unproven gas is monetised.

She described the use of firewood for cooking as a double edge sword, adding that apart from death brought about by smoke from firewood, cutting down trees for firewood leads to deforestation which is dangerous for the environment.

According to her, about 470,000 people died from smoke generated from firewood within five years, which gives an average of 100,000 people annually.

Fatayi-Williams who said that the NLNG project remained in mind of the founding fathers between 1960 when it was conceived and 1989, disclosed that it became a reality in 1989 when it was incorporated, adding that while it has existed for 30 years, it has operated fully as a limited liability company with four shareholders for 21 years.

According to her, the NNPC which represents the Federal Government on the board controls 49 percent shares of the company while Agip, Shell and Total control 51 per cent shares.

Fatayi-Williams said from 1999 when the first cargo sailed from Bonny Island in Rivers State to France, the NLNG has succeeded in putting Nigeria on the map as an operational company, stressing that since then it has been safe, consistent and reliable production as an operating company.

“We buy gas, we liquidify it, we transport it and sell it to the buyers and get value for Nigeria LNG and for Nigeria. In the 21 years we have operated, we have delivered 5000 LNG cargoes around the world and we have 23 dedicated LNG ships to ensure our operation runs smoothly.

“On Bonny island we have six installed and operational LNG trains (the train is also known as LNG manufacturing line) of 22 million tonnes capacity.

“Our installed asset base is 11 billion dollars.

We have generated 108 billion dollars in revenue since inception and have delivered 35 billion dollars in dividends to the shareholders in the 21 years that we have operated and have paid eight billion dollars in taxes,” Fatayi-Williams said.

She explained further that in the early days of crude oil exploration in the country, 65 per cent of total gas produced in the country was flared, adding that as at today, less than 12 per cent of the gas which is produced with crude is flared, an indication  of  where the country stands as at now.

She disclosed that Nigeria is currently rated 9th in the world with 200 Trillion Cubic Feet (TCF) of proven gas reserves, adding that Nigeria will be ranked 4th globally in gas production if the additional 600 TCF of unproven gas reserves is monetized.

She said this was a clear indication that there a great opportunity for Nigeria to move up in the ranking of the use of cleaner energy, stressing that over 470,000 persons die from firewood smoke in five years.

She said this was a clear indication that there a great opportunity for Nigeria to move up in the ranking of the use of cleaner energy, stressing that over 470,000 persons die from firewood smoke in five years.

Quoting the World Bank data, she said about a 100,000 Nigerians die annually due to firewood smoke inhalation and related complications with women and children mostly affected, saying “compare this with the number of people who have died of COVID-19 complication which is less than 2000 as reported by NCDC.

“The use of firewood is a double edge sword, it is not only leading to a significant number of death, we also know that cutting timber for firewood leads to deforestation, which later leads to desertification.

THE NATION

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