NLNG to raise $15bn for train 7 project

The Nigeria LNG Limited has said it was about to raise 15 billion dollars for Train 7 investment which is capable of generating 18,000 jobs.

The Managing Director of the company, Tony Attah said this while receiving the Senate Committee on Gas, in the headquarters of the company. According to him 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 also pointed out that Nigeria LNG has helped to reduce gas flaring from 65% at the commencement of its operations to about 20% today.

Attah said Nigeria LNG is faced with severe challenges, including operations of multiple regulatory agencies, pipe line security issues, citing 19 recorded pipeline disruptions this year alone as example. He also alluded 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.

While responding the Chairman Senate Committee on Gas, Senator Bassey Albert Akpan has promised that his committee will do all in its power to sustain the NLNG legacy and encourage the entrenchment of the NLNG business model in other parts of the Nigerian economy.