NLNG generates over US$110 billion in revenue, pays US$18 billion dividends to FG

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OPENING REMARKS BY TONY ATTAH, MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, NIGERIA LNG LIMITED (NLNG), AT THE ANNOUNCEMENT OF THE EXECUTION OF SALES AND PURCHASE AGREEMENTS FOR DOMESTIC SUPPLY OF LNG, TRANSCORP HILTON, ABUJA, 8th JUNE 2021

Protocols.

 

It is an honour to be here today and no doubt, today will go down in history as another concrete step that we have taken as Nigeria LNG Limited to support the Federal Government’s Decade of Gas initiative. This is another clear testament of how we continue to live our vision of being a global LNG company helping to build a better Nigeria.

 

  • Nigeria LNG is respected internationally because of its solid reputation as a Responsible, Trusted and Reliable supplier of LNG. At the home front, we are distinguished as a development partner with Nigeria’s Government, with our six-train plant generating more than US$110 billion in revenue since it began operation in 1999.

 

Nigeria LNG has paid about US$18 billion as dividends to the Federal Government of Nigeria, through the state-owned Nigerian National Petroleum Corporation (NNPC) 49% shareholding and equivalent amount as dividend to the other three shareholders in the same time period. We have also paid about US$15 billion for feed gas purchases to the Federal Government of Nigeria through its shareholding in NNPC and about USD9 billion in taxes.

 

 

In addition, Nigeria LNG remains a major influencer in the domestic LPG sector. Presently, we have dedicated 450ktpa of LPG to the market and our focus is to support the use of cleaner energy to protect our citizens and the environment from the hazards posed by other cooking fuels by encouraging the use of cooking gas in Nigeria.

 

Ladies and gentlemen, it is my pleasure, to welcome you and announce that our commitment, as a corporate entity, to unlocking gas utilization is now backed by the execution of Sales and Purchase Agreements (SPAs) to supply 1.1 Million Tonnes Per Annum (MTPA) of LNG on DES basis to Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited. The SPAs will facilitate the project execution and development of infrastructure led by off-takers to aid LNG delivery into the domestic market.

 

The execution of these SPAs follows a Domestic LNG (DLNG) Workshop which was held in November 2019 to stress test the delivery model with industry stakeholders and a series of engagements to identify suitable actors to co-create the initiative and stimulate market interest for potential off-takers.

 

BIG congratulations to our Board of Directors and Shareholders for this demonstration of faith in the Decade of Gas vision, and commitment to the actualization of that vision.

 

Congratulations, too, to the Department of Petroleum Resources (DPR), who will no doubt play a critical role. Congratulations also goes to other stakeholders and corporate entities gathered here today. This is just the beginning, and our individual and collective efforts will be needed to make this journey a success.

 

With Nigeria’s enormous gas reserves, I am not in doubt that with the right drive from the government and the support of corporate organizations, we as a nation can stand with our head held high to be counted among major players. The government has demonstrated its readiness to take the gas sector to the next level by declaring this decade our nation’s Decade of Gas.

 

We believe this will be the decade for us to leverage on our gas reserves to accelerate our power generation solutions through Gas-to-Power projects. It will be the decade when as a nation we stop reporting deaths from pollution through the use of wood and solid fuels as domestic energy sources. And it will be the decade for empowering local SMEs to take advantage of the various investment opportunities that the Decade of Gas will attract.

 

In addition to the Domestic LNG Scheme, we have the ongoing Train 7 project with capacity to attract about $10bn in foreign direct investment. We are also looking to expand the LPG value chain by increasing our supply to the domestic market, guaranteeing LPG supply and enhancing its affordability, and enabling the development of a value network for a sustainable ecosystem.

 

As I close, may I stress again that this is a collaborative effort, and the active participation of all stakeholders will be required for us as a nation to reach the promised land and to attain the dream of economic expansion, industrialisation and improved opportunities for all Nigerians, flying on the wings of gas. It is time for GAS!

 

I thank you all.

 

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