NLNG remits $21bn to JV feed gas suppliers

The Nigeria LNG Limited (NLNG) said it had spent over $21 billion as payment to Joint Ventures feed gas suppliers from inception till date, adding that 55 to 60 percent of this amount went to the Federation Account via its shareholding in the Nigerian National Petroleum Corporation (NNPC).

According to its publication titled, Nigeria LNG Limited: Facts and figures on NLNG 2015, the Company stated that it has utilised gas that would otherwise be flared, thus resulting to a significant contribution to the nation’s income while helping to protect the environment.

It further stated that over the years, the company paid dividends of almost $30 billion, out of which 49 percent went into the Federation Account through the NNPC.

The company also said it contributed to the wealth and economic wellbeing of the states in which it operates; by ensuring it paid all applicable taxes and tariffs. “However, in 2014, the company’s corporate income tax amounted to about N220 billion, thus making it the highest tax payer in the Nigeria and Sub-Sahara Africa.”

It added that it converted about 133 bcm (billion standard cubic metres) or 4.68 tcf (trillion cubic feet) of Associated Gas to exports as LNG and Natural Gas Liquids, NGLs, thus helping to reduce gas flaring by upstream companies.

On Foreign Direct Investment, FDI, the NLNG said through its plant construction, the company attracted a considerable amount of FDI into the country. The project today has assets ranging from property, plant and equipment, worth over $14billion which is financed mainly by the NLNG’s shareholders; with 51 percent stake by International oil Companies, IOCs, and 49 percent to the country through the NNPC.

NLG further noted that since 20018, it has contributed about four percent of the country’s annual GDP. Also, with the current rebasing of the GDP, it now contributes about one percent to the GDP.

On Domestic LPG supply, the company said it optimised the price of cooking gas from over N7000 in 2007, to less than N3,500 per 12.5kg cylinder.

In addition, it reiterated its commitment to delivering over 250,000 tonnes of LPG into the Nigerian market annually and has signed Sales and Purchase Agreements, SPAs, with 15 off-takers (all Nigerian companies) for the lifting of LPG for the domestic market. Furthermore, on its corporate social responsibility scheme, the company had in May 2014, signed an MoU with six Nigerian universities for the development of engineering education with $12 million, to boost education in the country.

Under the initiative, the company has committed to spend $2 million on each of the participating universities for the construction of modern engineering laboratories and procurement of cutting edge engineering equipment to aid teaching and research. Among the beneficiary universities are: University of Ibadan, University of Ilorin, University of Port Harcourt, University of Maiduguri, Ahmadu Bello University, and University of Nigeria, Nsukka.

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