The Nigeria Liquefied Natural Gas Limited (NLNG) is to raise $15 billion from the International Capital Market to fund its Train 7 project.
Briefing members of the Senate Committee on Gas led by Senator Bassey Albert Akpan, Managing Director of NLNG, Tony Attah, explained that the proposed project is capable of generating 18,000 jobs.
Explaining further, Attah informed members of the committee who visited NLNG facility in Bonny, Rivers State, as part of their oversight function, that: “NLNG needs all the necessary support to be able to go to the market to raise $15 billion for Train 7 investment which is capable of generating 18,000 jobs. This will enable Nigeria resolve most of the youth restiveness in the country; help the company to remain a global player in the natural gas market, and to help build a better Nigeria. We believe we can achieve all these with your help.”
He assured that Nigeria had sufficient proven and non -proven gas resources to the extent that the country was referred to in a global conference, as “that gas country that has some oil”, whereas the country actually classifies its economic strength in terms of oil and not gas, adding that proven and estimated gas reserves at 187 and 600 trillion cubic feet (TCF), are more than sufficient to serve domestic and commercial needs of the country.
He also pointed out that Nigeria LNG had helped to reduce gas flaring from 65 per cent at the commencement of its operations to about 20 per cent today, removing the country from the top of the list of erring nations.
Attah said Nigeria LNG is faced with severe challenges, including the operations of multiple regulatory agencies, pipe line security issues, with 19 recorded pipeline disruptions this year alone as example.
He also made reference to the problem of double taxation, which is capable of impacting the company’s competitiveness and compromising its ability to maintain its position as the world’s 4th global largest gas supplier.
According to him, the situation if not checked, is capable of leading to a number of unfavourable consequences such as loss of revenue for the Federal Government, potential loss of jobs and loss of status as inspirational business model and number one indigenous company in the country.
On LPG supply to the domestic market, the NLNG MD said the structure is threatened, as the system encourages tax-free importation of LPG while NLNG supply is subjected to Value Added Tax (VAT), thereby frustrating the company’s effort to support and grow the local LPG market for which it already sets aside 250,000 metric tonnes annually.
Akpan promised that his committee would assist to sustain the NLNG legacy and encourage the entrenchment of the NLNG business model in other parts of the Nigerian economy.
He explained that the visit provided a clear picture and understanding of the trends and issues involved in the business.