Shareholders in the Nigeria Liquefied Natural Gas Limited have started working toward the taking of Final Investment Decision, FID in the nationâ€™s $10 billion train 7.
The managing director of the company, Mr. Babs Omotowa who confirmed this yesterday in Lagos at the disclosure of the companyâ€™s fact and figures said the socio-economic environment and other factors are much better than what they used to be in the past.
He said with these and other considerations, the company is very optimistic that the FID would be taken to place the train on the path of sustainable execution.
Omotowa disclosed that the government and partners have already shown adequate commitment and cooperation required to make that important decision.
He said that the decision has not yet been taken on the nature of the train, but noted that it would be in the best interest of the nation and stakeholders.
Omotowa disclosed that the successful execution of the train would enable the nation to produce 30 mtpa of LNG.
The managing director maintained that plans are currently progressing with some preliminary early site preparation works at the cost of $300 million.
â€œFurther work awaits an FID by the shareholders. The plant has rapidly and successfully made the transition from a construction project to a stable production operation with a robust framework of people, processes, systems and organisation, and relentless focus on operational excellence and continuous improvement.â€â€œIn addition to regular maintenance of the assets to assure integrity and reliability, opportunities are continuously sought to debottleneck the plant, incorporating proven techniques and processes to maximize production, and manage human interferences and impacts.â€â€œThe company has also embarked on a structured programme of asset rejuvenation to extend the plant life beyond the current design life,â€ he added.
He said in November 1995, a similar FID was signed by the shareholders to build a LNG plant in Finima, Bonny Island in Rivers State.
The managing director said this was followed in December 1995 by the award of a turnkey Engineering, Procurement and Construction (EPC) contract to aconsortium of engineering firms comprised of Technip, Snamprogetti, M.W. Kellog and Japan Gas Corporation (TSKJ) for the Plant (consisting of two trains: Trains 1 and 2, called the Base Project), the Gas Transmission System (GTS) and the Residential Area (RA).
He noted that construction at the plant site commenced in February 1996 and on August 12, 1999, Train 2 was ready for start-up.
Omotowa said production of LNG commenced on September 15. Train 1 subsequently came on stream on February 27, 2000.
He said the second phase of development, called Expansion Project, commenced with an FID in February 1999 to develop train 3 and the plant’s Natural Gas Liquids (NGLs) Handling Unit (LHU)â€”condensate stabilisation and Liquefied Petroleum Gas (LPG) production units.
Omotowa said the expansion project was completed and came into operation in November 2002.
He disclosed that the next phase of development called the NLNGPlus project, comprised of Trains 4 and 5, commenced with an FID in March 2002.
The managing director observed that train 4 came on stream in November 2005 and Train 5 was started up in February 2006.
He indicated that NLNGSix project, consisting of train 6 and additional condensate processing and additional LPG storage and Jetty facilities commenced with an FID in 2004.
The managing director maintained that train 6 became operational in December 2007, thus encouraging the company to embarked further expansion.
He said with six trains currently operational, the entire complex is capable of producing 22 million tonnes per annum (mtpa) of LNG, and 5 mtpa of NGLs from 3.5 Billion (standard) cubic feet per day (Bcf/d) of natural gas intake.
The managing director said the plant continues to rank amongst the biggest and top performers worldwide; its performance is regularly benchmarked internationally with other LNG plants around the world.
He noted that NLNG has, within a short span of time, grown in status to become a very reliable supplier of LNG in the Atlantic Basin, serving the European, South American and Far East markets.
Omotowa noted that NLNG is successfully harnessing associated gas volumes which would otherwise have been flared, and has already generated significant revenues for the nation.
He said that the payment to Joint Venture (JV) feedgas suppliers from inception till date is about USD23 billion; 55-60 per cent of this amount goes to the Federal Government of Nigeria via its shareholding in Nigerian National Petroleum Corporation, NNPC.
Omotowa disclosed that NLNG has also over the years paid dividends of almost USD32 billion, out of which 49 per cent went to the Federal Government of Nigeria courtesy of its shareholding in the company, again via Nigerian National Petroleum Corporation, NNPC.