The Nigeria Liquefied Natural Gas (NLNG) plant is one of the government’s biggest investment in Rivers state. The company’s main business interest is in the production Of Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGL) which it exports to various countries across the globe. In this post we are going to learn more about this massive plant in Rivers state and its major contribution to the people of Bonny Island.
The NLNG plant was built with a total cost of $9.348 billion. The breakdown of the cost is highlighted below:
|Train 1||$3.6 billion|
|Train 2||$3.6 billion|
|Train 3||$1.8 billion|
|Train 4||$2.2 billion|
|Train 5||$2.2 billion|
|Train 6||$1.78 billion|
The financing was done by the shareholders described above. Some part of the capital was also gotten from internally generated revenue from the company as well as the revenue reinvested from the base project.
The company was incorporated on the 17th may 1989 but the first train did not come until 1991. The plant was built by a consortium of companies called TSKJ headed by KBR; a subsidiary of Haliburton. Other companies that participated in the construction of the plant include: Snamproghetti, Technip and JGC Corporation.
There were allegations of corruption between the TSKJ Consortium and some Nigerian Government officials.
$180 million was said to have changed hands between the consortium and some government officials to secure contracts for the construction of the plant.
NLNG Ltd has a commitment to contribute meaningfully to the development of the community on Bonny Island. It has embarked on several development programs in and around the bonny community.
Some of its projects in the state include the construction of road network, provision of electricity, rehabilitation of schools and repair of broken water supply pipes.
It has also built several primary health centers in the community. NLNG ltd has sponsored the immunization of people in the community. It has sunk several boreholes in strategic areas within the community.
Its contribution to education in the community is noteworthy. It has denoted writing materials as well as desk to several schools in the community.
This is natural gas that has been super-cooled and chilled to 160 degree Celsius. It then condenses and its volume drops. This makes it easier and cost effective to transport on long distance.
Natural gas liquids are the by-products of the liquefaction process of natural gas. Both liquefied petroleum gas and natural gasoline are obtained from this process.
NLNG Ltd supplies LPG to consumers in Nigeria. It commenced sales in 2007 and has since signed sales and purchase agreement with 15 off-takers. It currently supplies over 250, 000 metric tonnes of LPG per annum to the Nigeria market.
There are currently 23 ships transporting the company’s products around the world.
The destinations of the ships are United States, United Kingdom, Europe, Gulf of America, Middle East and Asia. Some of its major customers include Enel, Gas Natural, Botas, GDF Suez, Galp Gas Natural, BG LNG, Endesa, Eni, Iberdrola, Shell Western LNG BV and Total Gas and Power Ltd.
The ships comprises of;
Bonny Gas Transport Ltd
Bonny Gas Transport Ltd was established in 1989 to provide shipping services to the company projects. The company was formed by ordinary equity holding from Nigeria LNG Ltd and from shareholders of the company.
NLNG Ship Management Ltd
NLNG Ship Management Ltd was established to address the shortage of shipping personnel in the maritime industry. Its main responsibility is to train ship board personnel and supply qualified ones to man their ships.
The policies of the company is geared towards providing adequate care to all her assets, ensuring that all persons employed by the company is guaranteed safety at all times and ensuring that its activities does not cause long term environmental challenges that is injurious to both man and the environment.
Below are some of the measures the company is making as regards health, safety and the environment in the facility;