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NLNG Train 7

Buhari performs ground breaking of Natural Gas Train 7 in Bonny

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President Muhammadu Buhari has performed the virtual ground-breaking of Nigeria Liquefied Natural Gas (NLNG) Train 7 in Bonny Island, Rivers State to enable the Train 8 to take-off.

He   urged the Board of Directors, management and staff of NLNG, the host communities, the Rivers State Government and other Agencies of the Federal Government to continue to collaborate to ensure completion and eventual commissioning of the Train 7 project “safely and on time”.

 ”As we flag off the Train 7 project today, I look forward to the development and execution of more gas projects by the International Oil Companies (IOCs) and indigenous operators, and more Trains from Nigeria LNG to harness the over 600 trillion cubic feet of proven gas reserves we are endowed with.

”Let me use this opportunity to commend the shareholders of NLNG, the Federal Ministry of Petroleum, NNPC and the NCDMB and other stakeholders for very exemplary collaboration which has culminated in this great opportunity for Train 7.

”I want to thank the foreign investors for  the confidence reposed in Nigeria, and assure all Nigerians and potential investors in the Oil and Gas sector that the Federal Government will continue to create the enabling environment in order to develop the sector and bring the full benefits of Gas closer to our people,” he said.

President Buhari recounted that the story of Nigeria LNG was one he had been ”passionately associated with during the formative years of the project.”

He said: ”As Minister of Petroleum Resources, I kicked off our first foray in LNG Business in 1978. At the time it was already apparent that Nigeria was mainly a gas-rich country with a little oil!

”It therefore gives me great joy to see the organization transform from just a project in the early 90s  to a very successful company with over 20 years of responsible operations and steady supply of Liquefied Natural Gas, Liquefied Petroleum Gas and Natural Gas Liquids into the global market.

”This is proof that Nigeria has great capacity to deliver value to the world by harnessing our natural resources”.

He congratulated NLNG and its shareholders – NNPC, Shell, Total and Eni for proving that a Nigerian company can operate a world class business safely, profitably and responsibly.

Praising the consortium for clearly setting the stage upon which Nigeria’s vast gas resources will continue to grow well into the future, the President added that the focus of his administration is to boost the development of Nigeria’s abundant gas resources, strengthen the gas value chain, develop the much-needed infrastructure and enhance safe operations in the sector as outlined in the National Gas Policy of 2017.

”Through the Decade of Gas initiative, which I recently launched, we will transform Nigeria into a major gas and industrialised nation with gas playing the key role as revenue earner, fuel for industries and necessary feed for petrochemicals and fertiliser plants,” he said.

The President also expressed delight that the NLNG as the pioneer LNG company in Nigeria, has conscientiously proven the viability of the gas sector over the years, currently contributing about one percent to Nigeria’s GDP.

”NLNG has generated $114 billion in revenues over the years, paid $9 billion in taxes; $18 billion in dividends to the Federal Government and $15 billion in feed gas purchase.

”These are commendable accomplishments by the company’s 100 percent Nigerian Management Team.

”With this level of performance, I can only hope that the company continues to grow starting with this Train 7 project but also positioning Nigeria to thrive through the energy transition,” he said.

In his address, the Minister of State for Petroleum Resources, Timipre Sylva described NLNG as a ”blessing to the nation”, noting that it has positively complemented crude oil exploration by monetising flared gas and yielding huge revenue to the nation and investors.

Sylva added that since NLNG became operational in 1999, the nation has recorded a drastic reduction in operational flare status from 65 per cent to 12 per cent.

”I boldly say that the ground breaking of Train 7 is a guarantee to every stakeholder of more dividends in terms of further reduction in gas flaring, more revenue to the nation and shareholders, more job opportunities especially at the construction phase and more social investments for the society, ” he said.

Also speaking, Anthony Attah, the Managing Director and Chief Executive Officer of NLNG, said the Train 7 will increase NLNG’s overall capacity to 30 million tonnes per annum (mtpa) from the current 22 million mtpa, while further adding immense value to the nation and the people.

Attah noted that the project would stimulate inflow of about 10 billion dollars FDI into Nigeria, create 12,000 direct jobs in Bonny Island and additional 40,000 indirect construction  jobs.

He said the project would also further the development of local capacity and businesses through the 100 per cent in-country execution of construction works, fabrications and major procurement.

‘‘Nigeria has ridden on the back of oil for over 50 years, but with this Train 7 project Nigeria is now set and I believe it is now time to fly on the wings of gas,’’ he said.

POWER PLANT

NNPC, Egbin collaborate to boost gas-to-power programme

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The Nigerian National Petroleum Corporation (NNPC) and the Egbin Power have pledged to deepen collaboration to ensure the success of the Federal Government’s gas-to-power programme.

The Chief Operating Officer, Gas, NNPC, Mr Yusuf Usman and Chairman, Board of Directors, Egbin Power Plc, Mr Temitope Shonubi, made the pledge during a facility visit of the NNPC team to the power plant in Lagos.

Usman said the NNPC was committed to deepening gas utilisation in Nigeria, adding that the turnaround of the thermal power station by the company was very impressive.

He said there was need to ensure undisrupted supply of gas to Egbin Power Plant, which was the biggest in Sub Saharan Africa.

Usman said: “This visit has been an eye opener for me. We have seen turbines that have been running for over 40 years. We have seen efforts being made by Egbin management to effect a turnaround at the plant through overhaul of he entire system.

“We have also seen the support you have been giving to the youth through employment and capacity development opportunities.

“I have listened to the concerns you raised, particularly, in the area of transmission restrictions. I am aware that works are ongoing in this regards to ensure that all the power we generate is safely evacuated.

“An area of concern to me is when you talked about the gas constraints. We are going to support you to make sure that the power supply is steady. We are having a session with gas suppliers in this regard.”

Earlier, Shonubi said the Egbin Power Plc under, its Phase Two investment expansion plan, would add between 1,750MW and 1,900MW to Nigeria’s power generation pool.

Shonubi said the plant had gone through major overhauling, which had helped to increase its generation from the low capacity it had before 2013.

He said: “Egbin has 1,320 MW capacity. As at the time we took over, the plant was generating 300MW which is abysmal 22 per cent.

“As at today, our generation capacity has surged and we do 89 per cent.

“We have reached the highest peak of 970 MW and we are working hard to ensure sustainability of this feat.

“The 970MW we hit is the highest in the history of the plant and based on our core value of sustainability, we are working round the clock to make sure that we sustain the gains we have made.”

Shonubi listed the challenges being faced by the company to include grid limitation, gas constraints and liquidity.

He, however, said stakeholders including the NNPC, Central Bank of Nigeria and the Transmission Company of Nigeria were working tirelessly to solve the issues.

Shonubi appealed to the NNPC to sustain effort towards gas development and supply of the product to keep turbines at Egbin working productively at optimal capacity.

FMDQ

FMDQ approves Mixta Real Estate quotes

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The FMDQ Securities Exchange has approved the quotation of Mixta Real Estate Plc’s N1.02 billion Series 36 Commercial Papers (CP)  Issuance on its platform.

FMDQ, in a  statement, noted that the offer was approved by FMDQ under the company’s N20.00 billion Commercial Paper Issuance Programme.

According to the statement, the admission of the CP on FMDQ Exchange, which is sponsored by FBNQuest Merchant Bank – a Registration Member (Quotation), serves to re-affirm FMDQ Exchange’s efforts in boosting investor confidence and reinventing the Nigerian CP market.

The statement noted that Mixta Real Estate Plc, a subsidiary of Mixta Africa, is a leading real estate development company with a strong track record, diverse real estate portfolio and operations.

The activities span the residential, commercial and retail sectors of the Nigerian real estate industry.

Also, the statement explained that FMDQ Exchange remained  committed to articulating and pioneering innovative ways to improve and make the Nigerian financial markets globally competitive, operationally excellent, liquid and diverse.

Dangote Fertiliser

Dangote Fertiliser delivers 120 trucks daily

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Dangote Industries says its urea fertiliser currently pushes out a minimum of 120 trucks per day across the country to meet local demands and exports.

Mr Devakumar Edwin, Group Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Industries Limited, made this known  in a statement on Sunday.

Edwin said that the fertiliser plant, which has the capacity to turn out more than 4,500 tonnes of urea daily, would conveniently meet  local demands and even produce for exports.

“We have the capacity to turn out 4,500 tonnes of urea everyday.

“This is a bulk application fertiliser that each crop in Nigeria or globally requires because of  the Nitrogen content; this is a rich fertiliser having 46 per cent nitrogen.

“The company has the capacity to meet local demand and also export to African countries.

“Currently the demand is less than one million tonnes and we alone can  produce three million tonnes; so,  we can easily meet local demand and also produce for export to other west African countries,” he said.

Edwin said that asides fertiliser production, the company was already working to support the farmers with training on application of the fertiliser and even establish laboratories across the country for proper soil examination.

“The uniqueness of this plant, apart from the fact that we are producing is the focus on farmers’ support, on training, education, development.

“We are now establishing laboratories across the country and even mobile laboratories where we can go drive around and take soil samples for proper examination.

“This is to effectively grow the agricultural outputs across the country,” he said.

The Urea Fertiliser Plant was built to tap into Nigeria’s demand for fertiliser, a critical component of achieving food sufficiency for Africa’s most populous country.

The fertiliser plant is expected to manufacture  three million metric tonnes of urea per annum.

This is with a view to reducing the nation’s fertiliser imports, and generating $400 million annual foreign exchange from export to Africa countries.

Ghana, Egypt, Eswatini in race for AfCFTA’s office

Processing of raw materials to value addition in AfCFTA

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Mrs Dabney Shall-Holma, Chairperson, Sealink Implementation Committee, says processing raw materials will add value to products and increase intra-African trade.

According to her, processing the raw materials into finished goods will also engage youths in the value chain and address the issue of youth restiveness and unemployment.

“The value and the volume of employment that you are creating for bringing in raw products is not more than 200 jobs.

“But if you process up to 50 per cent, you are creating about 25,000 jobs because everybody gets involved.

“It is a line, it is a value chain from one point to the other, there are people you are engaging.

“And there is no other way any nation can get rid of restiveness, lack of jobs or unemployment than creating a means of production, processing your products.”

Shall-Holma said that because of the Africa Continental Free Trade Agreement (AfCFTA), Africa had now become Sealink’s immediate concern and priority.

She said that before AfCFTA, Sealink was considering shipping African products to the US, India, Korea, Vietnam and China, as they seemed to be the major buyers of most minerals  mined all over Africa.

She added that the company had actually received intents from so many off takers, who were willing to trade with companies abroad because they already had a relationship with other companies ready to take the goods.

However, with the advent of AfCFTA focus was now more on Africa, she said.

“We are saying look, can we add value to these products? If we are mining iron ore, can we do something about using any of the smelting companies or any of the steel complexes in Africa, so that we remove the iron ore from here?

“So the discussion has been rerouted. It is not that we are not going to deal internationally with others, no, we will, because you cannot put all your eggs in one basket.

“But most importantly, as a priority, we are saying, look, our African continent will be our market, we will sell to ourselves so that we can increase our intra-African trade volumes.

“We will also increase the fortunes that are going to be developed or grow, or be grown for African countries, because the moment you take a product to somewhere and they add value to it, then they are earning from the process of adding value.”

Sealink Project is a Public-Private Partnership (PPP) arrangement established to promote the development of a regional maritime company that would remove the bottlenecks and non-tariff measures along the ECOWAS trade corridor.

It was conceived based on the need of importers, exporters and shippers to create a value chain that would sustain the economy of Nigeria and develop additional networks to trade with other African countries.

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