Nigeria LNG Limited is the most significant arrow-head of the federal government’s quest to eliminate gas flaring and derive value from the country’s 187 trillion cubic feet of proven gas reserves.
Environmental Hazard Reduction
NLNG has converted about 119 Bcm (billion standard cubic metres) or 4.2 Tcf (trillion cubic feet) of Associated Gas (AG) to exports as LNG and Natural Gas Liquids (NGLs), thus helping to reduce gas ﬂaring by Upstream Companies from over 60% to less than 25%. Flares are only permitted in order to eliminate waste gas which cannot be converted to any further use. Flares also act as safety systems for non-waste gas and are released via pressure relief valves, when required, to ease the strain on equipment.
Monetisation of Gas
NLNG mops up gas that would otherwise be ﬂared, thus making signiﬁcant contributions to the nation's income, delivering in the last thirteen years over USD13 billion in dividends. The company has paid over USD18 billion on gas purchases from oil producing companies, of which the Federal Government of Nigeria owns 55%-60%. Nigeria's overall earnings from NLNG is now over 70%, comprising of the 49% dividend, 30% CIT, and other taxes.
Foreign Direct Investment (FDI)
With its plant construction, the company has generated considerable Foreign Direct Investment (FDI) for the country.
Gross Domestic Product (GDP)
NLNG contributed about 4% of Nigeria's Gross Domestic Product (GDP). As a good corporate citizen, the company also contributes immensely to national wealth and to the wellbeing of states in which it operates, by paying all applicable taxes and tariffs.
Company Income Tax
In 2014, NLNG remitted over N200 billion for its 2013 Company Income Tax (CIT) to the Federal Government, making it the highest Company Income Tax ever paid by a company in a financial year in the country.
Nigeria LNG (NLNG) Limited provided more than 2,000 jobs each construction year. Overall, the major sub-contractors employed about 18,000 Nigerians in technical jobs in the Base Project.
Through each Nigerian Content plan for its contracts, NLNG has promoted the development and employment of Nigerian manpower. For instance, six hundred (600) Nigerians will be trained in Nigeria and at the contractors’ (Hyundai and Samsung) shipyards in Korea as part of the Nigerian Content deliverables tied to the construction of six new LNG vessels by Bonny Gas Transport (BGT), a wholly owned subsidiary of NLNG.
Those six hundred Nigerians, with enhanced skills in welding, hull assembly, pipe fitting, electrical, mechanical, painting and ship design will join the country's workforce, providing a support base for technology transfer and industrialization.
Thirty-five of the Nigerian trainees are currently in Korea for participation in the ship construction and six Nigerians are already working as ship managers (two Production Managers, two QA/QC Managers and two HSE Managers) in the ship construction at the shipyards in Korea.
Local Content Development
NLNG supports the development of community and Nigerian contractors to enable them achieve standards of excellence.
In our host community, through the initiative to empower local contractors via the Finima Legacy Project, local contractors have made capital investments in their companies thereby expanding their operating capacity. The capabilities of local vendors have also been developed through mentoring and engineering of partnerships between the more established Nigerian vendors and the community vendors.
NLNG’s shipping subsidiary, Bonny Gas Transport (BGT) recently ordered for six new Dual Fuel Diesel Engine (DFDE) LNG carriers. The carriers are currently under construction in South Korea by Hyundai Heavy Industries (two ships) and Samsung Heavy Industries (four ships).
The Nigerian Content commitment in the project, which is defined in a Memorandum of Agreement between NLNG/BGT and the shipyards (Hyundai Heavy Industries and Samsung Heavy Industries) includes major initiatives such as the training and development of Nigerians (both in Nigeria and Korea) in various aspects of ship design and construction, the supply of materials such as paints, cables, anodes and furniture by Nigerian suppliers for the construction of the vessels, and feasibility study on the establishment of the first LNG ship dry-docking and ship repair yard in Nigeria.
Consequently, Berger Paints and Paints and Coatings MN have produced and exported over 350,000 litres of paints; Nexans Kabelmetal has shipped over 130,000 metres of low voltage (LV) cables and METEC West Africa has exported over 9000 pieces of Aluminium and Zinc sacrificial anodes – all to the ship yards in South Korea for use in the newbuild vessels.
METEC West Africa and Nexans Kabelmetal through NLNG’s Nigerian Content initiatives have also undergone international class certification and inspection for the manufacture and supply of sacrificial anodes and low voltage (LV) cables respectively to meet the requirements of marine applications.
Berger Paints PLC has increased its portfolio of paints and manufacture to international standards, having installed state of the art laboratory equipment and acquired additional production equipment. Paints and Coatings Manufacturers Nigeria PLC (PCMN) has acquired additional mixers and laboratory equipment and gone ahead to become the first company in Africa to receive the Inter Marine Organisation’s Intershield 300 Ballast Tank Coating certification. Holborn Nigeria Limited developed capacity to manufacture 12 inch (30mm) diameter HDPE pipe which had hitherto not been manufactured in the country.
Furthermore, deliberate technology transfer initiative has enabled Waste Pipe & Drainages (WPD) to safely and successfully complete the change out of all nominated compressed air dryer bed desiccants in U-4700 (14 vessels in total). This makes WPD the second Nigerian contractor with this level of proficiency that they can compete with the previously sole Contractor (CAKASA) in LNG Trains molesieve bed change out activity.
Domestic LPG supply
NLNG commenced the supply of Liquefied Petroleum Gas (LPG) otherwise known as cooking gas to the domestic market in 2007 when refineries became challenged and supply was grossly inadequate. Since then, the issue of inadequate supply has become a thing of the past.
The intervention, which is in line with company's vision of helping to build a better Nigeria, has significantly contributed to the stimulation and development of the domestic LPG market in Nigeria and has effectively brought down the price of cooking gas from over N7,000 in 2007 to less than N3,500 per 12.5kg cylinder today.
NLNG is committed to delivering 350,000 tonnes of LPG into the Nigerian market annually and has signed Sales and Purchase Agreements (SPAs) with fifteen off-takers (all Nigerian companies) for the lifting of LPG for the domestic market.
NLNG and its shareholders agreed on a Nigerianisation scheme on September 1, 1997. This was revisited and updated in 2004. The objective of the scheme which was to Nigeranise the company's workforce was achieved in 2012. It started by recruiting Higher National Diploma graduates and training them as technicians and operators. This is a deliberate policy to enable the relatively young minds imbibe the skills, work culture, discipline and professionalism that the business requires. NLNG also instituted a staff training and development drive for different cadres of technical staff to help them acquire the requisite skills and competence for management, supervisory and operational positions in the company. The company continues to recruit young engineers and other technical staff, as part of this initiative.
Increased Shipping/Marine Human Resources
With the incorporation of its first subsidiary, Bonny Gas Transport (BGT), in 1989, the LNG shipping industry in Nigeria was born. Currently, NLNG, through NLNG Ship Management Limited (NSML), another of its subsidiaries, is the biggest employer of Nigerian seafarers on board its 13 NLNG directly-owned carrier ships. NLNG has trained hundreds of sea-going officers, some to the level of Captains and Chief Engineers.
Corporate Social Responsibility
Nigeria LNG Limited currently provides uninterrupted power to over 200,000 inhabitants and businesses on Bonny Island, amongst other huge projects which include The Nigeria Prizes, NLNG University Scheme Programme, Micro-Credit etc.
Vendor Finance Scheme
NLNG currently runs a USD 1 billion NLNG Local Vendors Financing Scheme (NLVFS) which facilitates access to funds from participating banks by NLNG-registered vendors (suppliers of goods or contractors of services). This way, vendors get speedy access to ﬁnance for their contracts, or procurement orders, at competitive rates.