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NLNG delivers 3 cargoes of LPG to local market in December

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Lagos, Dec. 30, 2023: The Nigeria Liquefied Natural Gas (NLNG) says it has delivered three cargoes of Liquefied Petroleum Gas (LPG) to the local market in the month to moderate prices and ensure regular supplies during the period.

Its General Manager, External Relations and Sustainable Development, Mr Andy Odeh, said on Friday in Lagos that that the delivery would contribute to ensuring a stable supply of LPG to meet the market demand effectively.

According to him, NLNG has taken measures to ensure that the market remains well-supplied during the December holiday period.

Odeh said that one of the factors that had influenced the decline in LPG prices was the news of the removal of Value Added Tax (VAT) on imports.

He also said there had been a moderation in demand due to the holiday season.

He, however, explained that despite these factors, NLNG maintained that it continued to sell LPG based on the West Africa index price, saying,” there is no change in the applicable price index”.

According to him, there is no change to NLNG’s pricing basis, which remains the West Africa index price.

“NLNG remains committed to supplying 100 per cent of its LPG to the domestic market.

“Regular supplies from other sources within Nigeria and also from imports will help in moderating prices,”he added.

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NLNG refutes shutdown of gas plants in Rivers

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Port Harcourt, Nov. 14, 2023: The Nigeria Liquefied Natural Gas Limited (NLNG) has debunked media reports that the company planned to shut down six of its train plants in Rivers.

The reports said the shutdown was to allow for maintenance of the plants, leading to concerns over the negative bearing the shutdown would have on the price of cooking gas.

Mr Andy Odeh, NLNG General Manager, External Relations and Sustainable Development refuted the report in a statement issued in Port Harcourt on Monday.

“Our attention has been drawn to a newspaper report on Nov. 12 titled “Gas Supply Constraints May Worsen in Nigeria, Europe as NLNG embarks on Plant Maintenance by February 2024.”

“The report alluded to an alleged total shutdown of NLNG’s six train plants over a proposed maintenance operation scheduled for February or March 2024.

“This report is false. NLNG commitment to the safe and uninterrupted functioning of its plants underscores the significance of routine turnaround maintenance, referred technically as a ‘shutdown’,” he clarified.

Odeh explained that turnaround maintenance was the temporal taking of a specific train or unit offline – for preservation purposes and does not entail a complete shutdown of an entire plant.

“The meticulous planning and execution of this essential activity allows for the seamless transfer of production loads to unaffected trains, resulting in minimal impact on overall production.

“The ‘shutdown’ alluded to in the media report is a routine turnaround maintenance and is part of NLNG’s production calendar.

“NLNG takes exception to the disconcerting lack of factual accuracy in the report, highlighting the evident absence of discretion,” he said.

Odeh said the company has a record of accomplishment of its maintenance approach which has consistently set high standards in safety and project management, leading to operational efficiency of its assets.

He recalled that NLNG had in 2022 replaced a critical valve with an Add-On Gate Valve (AOGV) technology in one of its train facilities without shutting down the plant.

According to him, NLNG was the first in Africa to deploy the AOGV technology in its 36 inches pipeline which was the largest pipe-size deployment across the globe.

“It is this kind of engineering excellence and unparalleled maintenance execution discipline that NLNG is known for.

“So, the report was not fact-based, and was deprived of any balance, in contradiction to the ethics of responsible journalism – as no spokesperson of the company was reached for comments,” he said.

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NLNG seeks more investments on gas production – Mshelbila

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Port Harcourt, Oct. 12, 2023: Dr Philip Mshelbila, Managing Director, Nigeria Liquefied Natural Gas Limited (NLNG) has called on the Federal Government to increase investments on gas production to achieve its energy transition plan.

Mshelbila stated this during the visit of Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), to the NLNG plant in Bonny, Rivers.

This is contained in a statement issued by NLNG’s Acting Manager, Corporate Communications and Public Affairs in Port Harcourt on Tuesday.

The managing director said the Federal Government must be deliberate in its adoption of gas as a transition fuel to overcome the challenges in the nation’s energy sector.

“So, as we embark on the journey to complete Train 7, we are on the precipice of achieving a remarkable milestone – a capacity of 30 Million Tonnes Per Annum (MTPA).

“This accomplishment will not only reposition us as one of the largest single-site operations globally but potentially among the top three worldwide in terms of capacity at a single site.

“It is an achievement that elevates Nigeria’s standing, placing us among the top six nations in this crucial industry,” he said.

He said the world was evolving at an unprecedented pace, as recent events, such as the Russian/Ukraine war, had ushered in a wave of new developments in the gas sector.

According to him, the conflict and other dynamic changes in the global energy industry was likely to increase Nigeria’s rankings as more countries make substantial investments in LNG production.

“This is why we believe it is important for us to conclude Train 7 and begin to look beyond that for further expansion.

“Currently, the biggest challenge we have, one that poses a threat not only to our existing operations but also to our expansion plans, is feed gas supply.

“Trains 1 to 6 currently operate at half their capacity, a situation that has persisted for some time.

“Crude oil theft has affected associated gas supply resulting in our plant being half-full. Not because we don’t have the capacity but because the feed gas is not there,” he added.

Mshelbila said the company had ambition for the Train 8 but could not make progress with the project due to no clear sight of where the gas would be sourced from.

He said the gas could, however, be sourced from deep water but that the Federal Government needs to address the Production Sharing Contracts (PSCs) that govern deep-water exploration in the country.

“At present, the PSCs that govern deep-water exploration do not offer commercially viable terms for producers.

“However, our commitment to harnessing the immense potential of natural gas will not only restore Nigeria’s reputation as a major energy powerhouse but also propel us to a cleaner/greener future,” he said.

Speaking, Ekpo said the Federal Government was fully committed to restoring Nigeria’s energy plans to enable the country to compete favorably among its peers globally.

The minister gave the assurance that the government would continue to encourage engagements of stakeholders to resolve gas supply and security issues in the country.

“So, all hands must be on deck to stop the loss of revenue and missed opportunities, as we continue to engage with investors to tap into our huge gas reserves.

“NLNG stand as a leading light to Nigeria’s quest to become an energy-efficient country where clean energy, including gas is utilized is commendable.

“The present administration will do everything possible to address the issues for the good of this country and benefit for our future generations,” he stated.

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NLNG employs 6,000 seafarers

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Lagos, Sept. 21, 2023: The NLNG Shipping and Marine Services Ltd., says the organisation has employed over 6,000 seafarers, a way to encourage youth in shipping carriers.

The Chief Executive Officer, NLNG Shipping and Marine Services Ltd, Mr Abdul-Kadir Ahmed, said this at the Lagos International Maritime Week (LIMWeek 2023) organised by the ZOE Maritime Resources Ltd in Lagos on Thursday.

The week had the theme,” MARPOL at 50- Pollution from Ships, Africa’s Commitment to Clean Oceans Seas, Inland Waters and the Marine Environment.

MARPOL is an International Convention for the Prevention of Pollution from Ships.

According to Ahmed, the NLNG encourages youth to tap into the potential in the marine sector by encouraging them to be gainfully employed in the sector.

He added that as regard adopting the International Maritime Organisation (IMO) standard on MARPOL Convention, the NLNG vessels are designed and built to the specification.

“NLNG has been able to design a system on its vessels to ensure that they fully comply with MARPOL convention.

“We ensure that we operate within the limit by developing a system to ensure that all our vessel comply 100 per cent with MARPOL regulations.

“We engage in treatment of waste, ballast water requirements and including carbonisation emission,”Ahmed said.

He urged that all port operators should understand the implications and provisions of the MARPOL convention and also the Safety of Life at Sea (SOLAS) which means safety at sea.

He pointed out that domestication of these conventions should not only mean passing the provisions into laws but should ensure how relevant industry key players would drive compliance in light of their ecosystem.

He, therefore, urged port operators on adopting notable changes in the conventions.

Ahmed further encouraged companies to take hints from NLNG who as a company had designed their vessels to be fully compliant with the conventions.

He said that industry players had a role to play in enforcement, noting that NLNG had also embarked on a cleaning initiative.

Also speaking, Mr Temisan Omatseye, former Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), noted that to address ship pollutions on our waters, there was need to apply professionalism.

Omatseye pointed out that people do not want a change, adding that a change would not happen unless a round peg was put into round holes.

Omatseye added that the Nigeria’s saving grace was that she does not have a major disaster on its waters, as the moment that happen, the country would be in a mess, the ecosystem would fail.

He asked if this happen today, what would be our response mechanisms, who knows how to respond or who was capable of responding to the situation?

According to Omatseye, its not that we don’t have qualified Nigerians to do the job, it’s because we have allowed nepotism and lack of professionalism to rule our organisation.

“Rather than putting professionals there, we are putting people that are not qualified to be in certain positions, politicising positions.

“When I was the DG at NIMASA, we decided to restructure and imbibe on an organogram to have a professional organisation focused purely on functions.

“We have a clear cut job description for every staff that comes in and the training the person will get to get up to the position of even the Director General’s position so that the DG can be gotten from in-house professionals.

“In the board meeting when I made the presentation, only one in the midst of hundred people accepted that and since I presented that, NIMASA has never been structured,” he said.

He added that in the International Maritime Organisation (IMO), an organisation that takes decision that relates everything shipping in the world, only one Nigerian was there.

Omatseye said that NIMASA had qualified personnel, but unfortunately, those qualified ones are removed from where they had a career path and taken to other departments like the admin.

“ We must get to a situation whereby people are allowed to furge a career path so that they can apply for international postings.

“We cannot become local champions in Africa, we must become international champions on international field,” he said.

LIMweek is a platform for learning, networking, expanding ones scope and others in the maritime sector.

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NLNG joins United Nations group to reduce methane emissions

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The Nigeria LNG Ltd. (NLNG) says it has joined the Oil and Gas Methane Partnership (OGMP 2.0), a partnership coordinated by the United Nations Environment Programme (UNEP) to reduce methane emissions.

The company also said that the partnership would improve the accuracy and transparency of methane emissions reporting.

Mr Andy Odeh, the General Manager, External Relations and Sustainable Development, NLNG, said in a statement on Wednesday in Lagos.

Odeh said that the move was a further step in NLNG’s commitment to decarbonisation.

Odeh quoted Dr Philip Mshelbila, the NLNG Managing Director and Chief Executive Officer, saying that the company had signed an MoU with UNEP in the last quarter of 2022.

Mshelbila stated that the signing demonstrated the company’s commitment to reduce methane emissions from its operations as part of its decarbonisation journey.

He said the company was proudly committing to annual reporting and phased reduction of its methane emissions, and decarbonisation which would secure a future for the company and its stakeholders through a cleaner and greener energy mix that will include gas.

He added that NLNG was already implementing a comprehensive programme  for reporting and reducing its methane emissions, utilising the latest industry technologies to track its progress and performance.

Mshelbila said further that NLNG’s decarbonisation journey would strengthen customers’ and stakeholders’ trust in the company’s ability to take responsibility for the environment in which it operates and its ability to remain competitive globally.

“The OGMP is recognised globally as the most significant voluntary initiative for companies in the oil and gas industry to systematically reduce their methane emissions and demonstrate the reduction in a credible manner to all stakeholders,” Mshelbila said.

In a message to welcome NLNG, the group stated that it was excited about NLNG’s membership as Nigeria is a significant producer of natural gas and one of the biggest contributors to Africa’s LNG production.

“OGMP 2.0 covers 55 per cent of Africa’s oil and gas production. 75 per cent of all methane emissions from oil and gas companies in the continent can be mitigated.

“45 per cent of them at no net cost. To meet that target, we invite other companies in the sector to follow the steps of NLNG and join OGMP 2.0.,” the group said.

NLNG is an incorporated Joint Venture owned by the Federal Government of Nigeria, represented by Nigerian National Petroleum Company (49 per cent), Shell Gas B.V. (25.6 per cent), TotalEnergies Gaz & Electricite Holdings (15 per cent), and Eni International N.A. N. V. S.àr.l (10.4 per cent).

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NLNG’s Bonny plant still in operation – Official

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The Nigeria LNG Ltd. says its plant on Bonny Island is still active despite a force majeure declared in October 2022 and feed gas supply challenges.

Mr Andy Odeh, the General Manager, External Relations and Sustainable Development, NLNG, confirmed this in a statement on Monday in Lagos.

Odeh said the plant continued to produce LNG and Liquefied Petroleum Gas commensurate with the feed gas it received from its upstream gas suppliers.

“In addition to ensuring steady operation, NLNG remains committed to its culture of transparency and maintains consistent communication with key stakeholders on developments in the upstream sector.

“The company is closely monitoring the resolution of supply challenges by all relevant parties,” he added.

However, average retail price paid by consumers to purchase Liquefied Petroleum Gas (LPG) also known as cooking gas has continued to skyrocket.

LPG retail market reports that an average retail cost of refilling 12.5kg gas cylinder rose to N9, 700 in December 2022 as against N7,800 earlier.

The price of refilling 3kg gas cylinder stood at N2,600 as against N1,800, and 5kg cylinder at N4, 600 as against N3,500.

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NLNG calls for more investments to ensure reliable LPG supply

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The Nigeria LNG Ltd. (NLNG) has called on stakeholders in the domestic Liquified Petroleum Gas (LPG) value chain to invest in the supply of the product to ensure reliable and steady supply.

The company made the call in a statement issued by its General Manager, External Relations and Sustainable Development, Mr Andy Odeh, to mark 15 years of domestic LPG supply in conjunction with the Nigerian LPG Association (NLPGA).

The statement quoted the NLNG Managing Director, Dr Philip Mshelbila, as saying that the investment in supply would spark commitment along the value chain, including vertical integrations.

Mshelbila said NLNG would further invest in ‘Train 7,’ which would add about 35 per cent to its current capacity when completed, subject to gas supply and gas quality.

He added that other domestic producers of LPG would need to make investments to enable their product become available to the domestic market, rather than exporting it.

He said the interventions would reduce the switching cost to LPG, encourage more adoption, as well as reduce the cost of funding to support infrastructure expansion and growth as deliberate government action to encourage non-export of LPG by producers.

Mshelbila said other urgent interventions included clarity of regulatory guidelines and requirements, alignment of government enforcement agencies and the widespread dissemination of information on safe practices in the handling and use of LPG.

“Supply and gas gathering initiatives faced major challenges in recent times, and this is due to floods ravaging operational sites of NLNG’s feedgas suppliers,” he said.

He said there had been a state of emergency requiring declarations of force majeure.

The NLNG helmsman, however, assured continued operations at the company’s production plant.

“We continue to load and ship LPG to the domestic market.

“Therefore, we reassure Nigerians of our ongoing operations in the immediate and look forward to an urgent return to normalcy.

“Prior to the flooding, we were contending with the unrelenting effects of crude oil theft, which directly and severely impacted the supply of associated gas to our plant by the upstream producers.

“We recognise the strides being made to address this by the government and its agencies and hope that this will soon translate into improved gas supply to our plant in Bonny,” he said.

Mshelbila said LPG supply was why the NLNG Board of Directors decided to intervene, increasing supply from 50,000 in 2007 tonnes to 150KT to 100 per cent, accounting for about 40 per cent of the domestic LPG (DLPG) market.

“Over the 15 years since 2007, NLNG has played a critical role in deepening the DLPG market with a reliable supply of LPG.

“Expanding access to energy that is cleaner, more reliable, and affordable, the number of its offtakers increased from seven at the onset to 42 today.

“The LPG ecosystem witnessed exponential growth across the value chain,” said Mshelbila.

He added that with the increased DLPG penetration and accessibility, there had been a remarkable reduction in the use of kerosene, firewood, and charcoal.

He explained that this reduced the risk of respiratory conditions associated with smoke inhalation and increasing alignment with the global drive for a cleaner environment and lower GHG emissions.

“Today, the Nigeria Liquefied Petroleum Gas Association (NLPGA) in collaboration with Nigeria LNG Ltd. (NLNG) is celebrating the 15th anniversary of uninterrupted supply of domestic LPG in the country.

“The intervention has seen the supply of LPG grow from 60,000MT in 2007 to over a 1.3million MT in 2021 (a growth of over 1,000 per cent).

“Today, the Nigerian LPG market is adjudged the fastest-growing globally.

“This scheme has encouraged massive investments in LPG infrastructure and has created over 150,000 jobs in the sector and resultant increased tax revenue for the government,” he said.

According to him, the Federal Government’s Decade of Gas programme has further helped in driving interest in propane, evidenced by NLNG’s startup of domestic propane, which witnessed its first delivery in September 2021.

“NLNG has invested in a 13,000MT dedicated LPG carrier and security escort vessels facilitating efficient deliveries to Lagos and Port Harcourt terminals.

“It invested in the refurbishment of the Lagos receiving terminal improving coastal delivery of LPG.

“It has also invested in throughput capacity at the Port-Harcourt stockgap receiving terminal,” he added .

He congratulated NLPGA for supporting and sustaining the value chain for 15 years.

NLNG is owned by four Shareholders, namely: the Nigerian National Petroleum Company Limited (49 per cent), Shell Gas B.V. (25.6 per cent), TotalEnergies Gaz & Electricite Holdings (15 per cent) and Eni International N.A. N. V. S.àr.l (10.4 per cent).

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Our plant still in operation – NLNG

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The management of Nigeria LNG Ltd. (NLNG) on Thursday said the company’s plant was in operation at a limited capacity, due to reduced gas supply from some of its upstream gas suppliers.

Mr Andy Odeh, the General Manager, External Relations and Sustainable Development of NLNG, said in a statement on Thursday in Lagos.

Odeh said: “None of NLNG’s assets on Bonny Island or in any of its host communities are impacted by the flood.

“The Force Majeure is as a consequence of a similar notice by upstream gas suppliers due to the impact of flood in their production facilities.

“NLNG continues to monitor the situation with upstream gas suppliers and is evaluating the impact of the flood on its business,” he said.

Odeh assured that NLNG was working with all critical stakeholders to mitigate the impact on product deliveries.

NLNG on Oct. 17 declared force majeure on its facilities due to flooding.

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NLNG evaluating senate’s resolution on host communities

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The Nigeria Liquefied Natural Gas Ltd (NLNG) says it is evaluating a resolution by the Senate for the payment N18.4 billion compensation to 73 communities of Obiafu, Soku to Bonny in Rivers.

Mr Andy Odeh, General Manager, External Relations and Sustainable Development, made this known in a statement on Wednesday in Lagos.

The Senate had on Tuesday directed NLNG to pay the communities for acquiring their land.

The compensation, they said , is also for loss of use of the affected land to pipeline Rights of Way through the communities.

The lawmakers had directed that the payment should be made within 60 days.

“The attention of NLNG has been drawn to a resolution said to have been passed by the Senate, following the consideration of a report by its Committee on Ethics, Privileges and Public Petitions.

‘’(This is) sequel to a petition relating to compensation for the acquisition of a Right of Way across some communities.

“NLNG is evaluating the resolution and circumstances surrounding it.

”NLNG wishes to state that it has always conducted its business responsibly and in accordance with the laws of the Federal Republic of Nigeria, including in this specific matter,” Odeh said.

Presenting the report, the Committee chairman, Sen. Patrick Akinyelure, said following its incorporation, the NLNG acquired landed properties in Rivers spanning over 210 kilometres for use as its pipelines Right of Way.

Akinyelure said the landed properties ended at the export terminal of the NLNG in Finima, Bonny Local Government of the state.

He said the payment made by NLNG  covered only 39 communities and 73 individuals and families out of about 73 communities and over 200 families.

Akinyelure said that the families’ hitherto agrarian source of livelihood was negatively impacted by the said acquisition.

Tanzania, Kenya in gas trade deal

NLNG denies involvement in illegal gas exportation

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The Nigeria Liquefied Natural Gas Ltd. (NLNG) has denied the allegation that the company was involved in illegal exportation of LNG or any of its products outside the country.

Mr Andy Odeh, the General Manager, External Relations and Sustainable Development, NLNG, issued the denial in a statement on Thursday in Lagos.

Odeh said the claim that NLNG was involved with an international cartel to illegally export products was false and calculated to cast the company and its leadership in bad light.

He said to set the records straight, deliveries of LNG from NLNG’s Bonny Terminal complies with all regulatory requirements for the export of its products.

According to him, they are made under various LNG sales contracts to destinations not limited to Europe, but also to the Far East, Greater Middle East, North America and South America.

He said this had ensured NLNG’s position as a significant competitive global LNG supplier, promoting the Nigerian brand.

Odeh said: “NLNG is a responsible corporate citizen operating its business according to strong business principles and ethics in accordance with requirements of relevant Nigerian and global laws and regulations.

“From the commencement of its operations in October 1999, NLNG has never, and does not, engage in “illegal” exportation of LNG or any of its products, nor is NLNG involved in any international cartel, as alleged.

“It is simply not true that the illegal exportation is still ongoing with the backing of some top officials of government.”

He explained that the LNG trade undertaken by the company was bound by strict protocols and controls, hence not amenable to the kind of illegitimate schemes alleged in the report.

Odeh said contrary to the allegation of export of LNG without paperwork, records exist for every single cargo of product loaded by the company since it commenced operations.

He added that there were fully accurate accounts of destinations, quantities loaded and unloaded and related earnings on each cargo which were demonstrable.

Odeh said for each of the past financial years which were periodically audited, including the periods alluded to in the report, the shareholders of the NLNG never reported that any cargo or product of the company was lost or unaccounted for.

He said the shareholders included the Nigerian National Petroleum Company Ltd. and three International Oil Companies (IOCs).

Odeh said: “Indeed, the possibility of such happening is beyond comprehension.

“For the avoidance of doubt, NLNG restates that the report paints a very incorrect picture of the company’s business and its LNG trade.

“It is at complete variance with the company’s vision as a globally competitive LNG company helping to build a better Nigeria.”

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