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.
Quick Facts about the Liquefied Natural Gas Plant in Bonny Island
- The company was incorporated on the 17th May 1989 to tap into the vast natural gas resources in Rivers state.
- It was built in Finima, Bonny Island, Rivers State.
- The company currently has 6 operational trains.
- It has a production capacity of 22 million metric tonnes per annum of Liquefied Natural Gas and 5 metric tonnes per annum of Gas Natural Liquids.
- The company is currently building its seventh train which will increase the production to 30 million tonnes of Liquid Natural Gas per annum.
- The shareholders of the company include the Nigerian National Petroleum Corporation (49%), Shell (25.6), Total LNG Nigeria Ltd (15%) and Eni (10.4%).
- The company has two subsidiaries: Bonny Gas Transport (BGT) Limited and NLNG Ship Management Limited (NSML).
- NLNG is responsible for supplying over 80% of the domestic cooking gas consumed in the country.
Features of the Plant
- The NLNG was built on a reclaimed land measuring 2.27 Sq km.
- There are 6 main dedicated transmission gaslines; four of which are located onshore.
- It has 4 LNG storage tanks with a capacity of 84,200 cubic metre.
- It has a fractionation plant for processing liquefied petroleum gas.
- The plant has common condensate stabilization.
- It has three condensate storage tanks with a capacity of 36, 000 cubic meter.
- It has 4 LPG storage tanks with a total capacity of 65,000 cubic meter.
- It has 10 installed turbine generator with a total capacity of 325 MW.
- It has two export lines for liquefied natural gas.
- There are 24 ships present in the plant for transporting the LPG.
- There is a material offloading jetty and a passenger jetty.
- A residential area measuring 2 Sq Km was built for its staff.
Financing of the Project
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.
History of the NLNG Plant
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.
Contributions of NLNG Ltd to Bonny Island Community
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.
- Liquefied Natural Gas (LNG)
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.
- Gas Natural Liquid
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.
- Domestic LPG
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.
Shipping of The Products
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;
- 13 ships made up of 4 membrane carriers and 9 moss, owned by the Bonny Gas Transport.
- 8 all membrane carriers owned by BW Gas.
- 2 all membrane carriers owned by the Nippon Yusen Kaisha.
Subsidiaries of NLNG Ltd
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.
Environmental Policies of Nigeria LNG Ltd
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;
- In accordance to regulation, it has constructed an effluent treatment plant to treat the discharges from the treatment before been released into water bodies.
- The company has built a nitrification biotreater for treating domestic waste water.
- NLNG has developed a strong management for the treatment of solid waste in the facility.
- NLNG assures at all times to meet the noise design specification for the project.
- NLNG constantly monitors its emissions to air by ensuring that the ground level concentration in the plant does to surpass regulatory tolerance limits.
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