Nigeria LNG

Nigeria LNG Limited (NLNG) is a liquefied natural gas (LNG)-producing company on Bonny Island, Nigeria.

History

Interest in LNG started in the 1960s when the idea of monetising​ flared gas was mooted. The Nigerian government set up a panel to look at the proposal and make recommendations on the feasibility of a LNG project in Nigeria. The panel recommended two LNG projects of three trains respectively— the first LNG project in the east of the Niger Delta and the second LNG project in the west of the Niger Delta. The Federal Executive Council approved the recommendations in April, 1975. However, attempts to progress the project were scuttled by a change of government.

By 1976, the Bonny LNG Limited (BLNG) was incorporated. The project was planned to build and operate a natural gas liquefaction plant capable of supplying up to 650 trillion Btu of LNG yearly. Had the project been realised at that time, it would have been the largest LNG project in the world. The plant capacity of 650 trillion Btu yearly was to be delivered by a fleet of 18 ships dedicated to a 20-year contract period. The United States was the planned prime destination, although the plan was later expanded to include Europe.

The progress on BLNG was again impacted by another change in leadership in the Nigerian government. By 1977, the investors downgraded their participation in the LNG project. In 1979, there was a transition to civil rule. However, this did not do much in advancing the BLNG project as inability to get the required funding hindered investment in gas.

The project again had to be delayed in 1982 due to a drop in oil price that impacted greatly on the country’s revenue. The investors in the project pulled out which marked the end of Bonny LNG. Between 1983 and 1985, the Federal Government set up another LNG working committee. This committee was inaugurated in March 1985 under the chairmanship of Mr. Gamaliel Onosode.

The committee had the responsibility of realising the LNG project in Nigeria. The first task the committee performed was to review the terms of reference that related to the establishment of a LNG business in Nigeria, with the intention of resolving all contractual, commercial, technical and financial issues. After all the knotty issues concerning shareholders and investors were resolved, NLNG was incorporated in 1989. ​ Production from its first operational train, Train 2, started in 1999 and Company’s first cargo left the shores of Bonny Island Rivers State, on the 9th of October, 1999 to Montoir, France.

Today, NLNG has a total production capacity of 22 Million Tons Per Annum (mtpa) of LNG and 5mtpa of Natural Gas Liquids (NGLs) from its six-train plant complex. The company has 16 long-term Sale and Purchase Agreements (SPAs) with 10 buyers and controls about 6 per cent of global LNG trade.

NLNG began its intervention in the supply of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, to the domestic market in 2007 under the NLNG DLPG Scheme. The supply has stimulated growth in the industry, guaranteeing LPG supply, availability and affordability. This has also inspired the development of different parts of the DLPG value chain.

In 2019, NLNG shareholders took the Final Investment Decision (FID) on its 7th train and awarded the Engineering, Procurement and Construction (EPC) contracts for the plant expansion in 2020. The long-awaited expansion will increase production capacity by 35 per cent from 22mtpa to 30mtpa and enhance NLNG’s competitiveness in the global market.

The company has a proven track record of resilient performance (Operational Excellence, HSE, etc.) and unswerving profitability.​

Operations

NLNG’s six-train production plant sits across 2.27 sq.km of largely reclaimed land in Finima, Bonny Island, inspiring awe and confidence in Nigerians and foreigners alike.

The plant ranks amongst the biggest and top performers worldwide; its performance is regularly benchmarked internationally with other LNG plants around the world.

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, as well as relentless focus on operational excellence and continuous improvement. In 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 maximise production and manage human interferences and impacts. The plant has also embarked on a structured programme of asset rejuvenation to extend the plant life beyond the current design life. All these activities are underpinned by a Health, Safety, Security and Environment (HSSE) culture that continually seeks improvements in the safe and sustainable utilisation of our assets.

Plans for building Train 7 which will lift the total production capacity to 30mtpa of LNG are currently progressing. FID for the 8mtpa train was taken in December 2019, paving the way for the award of Engineering, Procurement and Construction Contracts to SCD JV Consortium in May 2020.

Shareholders

Nigeria LNG Limited is jointly owned in the following proportions: Nigerian National Petroleum Company Limited (NNPC) owns 49%, Shell Gas B.V. owns 25.6%, TotalEnergies Gaz & Electricité Holdings owns 15% and Eni International owns 10.4%.

Sponsorship

Nigeria LNG Limited sponsors The Nigeria Prize for Science, The Nigeria Prize for Literature and The Nigeria Prize for Literary Criticism.

External links

• Official website