Shell Energy Entrepreneurs banner Yudala banner
Let NLNG be; it’s the best thing to have happened to Nigeria’s oil industry — THE NATION Editorial

By News Express on 30/01/2017

Share on facebook Yahoo mail icon Gmail icon

Views: 1,535


The common saying is: if it ain’t broke, don’t fix it. Or, don’t change a winning formula. This simple principle ought to apply to the Nigeria Liquefied Natural Gas (NLNG). The 28-year-old firm can be described as the flagship company of the Nigerian oil industry, having remained a success story since inception.

Established by the NLNG Act and incorporated in 1989, the company has a clear-cut duty to harness the vast natural gas deposit in Nigeria. Four major shareholders own the company with equity participation as follows: Federal Government of Nigeria, represented by NNPC (49%); Shell (25.6%); Total LNG Nigeria Limited (15%) and Eni (10.4%).

Its major products are Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs). It also supplies about 40% of Nigeria’s liquefied petroleum gas (LPG or cooking gas). Based in Bonny Island in Rivers State, it is developed in trains; it has six trains operational while the seventh and eighth are in development.

The joint venture company which started with an initial investment of about $6 billion has generated over $90 billion in revenues and currently has an asset base of about $11 billion. It also has two subsidiaries – Bonny Gas Transport Limited (BGT) and NLNG Ship Management Limited (NSML).

Apart from employing thousands of Nigerians, NLNG’s activities have reportedly reduced gas flaring in Nigeria from about 65% in 1999 to about 20% today, with the figure liable to reduce further when trains seven and eight are completed.

According to a communique by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN ), NLNG has since inception paid to the Federal Government, over $15 billion as dividends; $5.5 billion in taxes and N51 billion in levies, among other benefits.

The foregoing is by way of back-grounding. The crux of the matter here is that a bill to amend the NLNG Act is currently before the National Assembly. Stakeholders, including PENGASSAN, insist that such an action would be tantamount to sabotage and hardly in the interest of Nigeria.

Proposed amendment include a deletion of government’s  undertaking to honour shareholders’ agreements and contracts; a deletion of assurances by government to retain agreed fiscal and security regimes of the investment; and the need to make NLNG contribute three per cent of its annual budget to the Niger Delta Development Commission (NDDC). Only upstream oil firms pay this levy currently.

We agree with other Nigerians who think the NLNG should be left well alone. The reason is simple: the NLNG is no doubt the best thing going for the Nigerian National Petroleum Corporation (NNPC) and indeed the Federal Government as far as the oil industry is concerned. It is a multi-national special utility investment vehicle which has performed quite well and made handsome returns since inception.

The benefits the firm has brought to the industry and the nation are numerous and to unilaterally tinker with some basic agreements that set it up is bound to injure Nigeria’s credibility in international financial circles. It is noteworthy that the firm was built largely from international financing based on certain agreements and assurances.

Of course change would be inevitable at a point but there is need to build consensus among shareholders. While we think the NLNG should contribute to the NDDC, negotiation would bring about mutual understanding on the imperative for this.

And if the National Assembly feels so strongly and justified in updating the agreements binding the NLNG, it must be done with utmost good faith, openly and transparently: this will include wide consultations and a series of public hearings. We feel uncomfortable at what seems like a recent untoward interest in the NLNG. Not long ago, another government agency tried imposing a levy on it; recently, there was a campaign to sell a bit of Federal Government shareholding, and now this.

We appeal for caution; we urge the National Assembly (NASS) to rather enact laws to allow many more firms like NLNG take root in Nigeria. For instance, the same principles can be applied to build refineries, petrochemical complexes and large, integrated, modern ranches, for instance.

The NASS should seek to expand our possibilities instead of seeming to limit us.

Source News Express

Posted 30/01/2017 8:33:59 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

 

You may also like...
Flavour, Phyno confirmed as lead artistes for Yudala...

Borno counts losses as Boko Haram kills 55...

A new dawn of QUALITY LEADERSHIP IN ENUGU-NORTH...

Airtel commended for role in uplifting underprivileged children...

65,000 Christians in Katsina pray for Buhari

PHCN pensioners in Kano petition FG over non-payment...

Dalung, Pinnick, Akinwunmi to cheer Eagles as Nigeria...

Buhari to participate in counter-terrorism summit in Jordan...

Impeachment: We have proved our case against Nyako...

Osinbajo’s Executive Order will boost indigenous businesses, local...

China’s sale of electric cars soars

Prime Minister fined for not wearing life jacket...

 

Latest News Communities raise alarm over cracks in dam The world has gone in reverse: Guterres Osinbajo speaks on Africa’s economic transformation Man seeks divorce to save his manhood News EFCC arraigns Abdullahi Adamu’s son over money laundering Breaking: PDP senators reverse colleague’s defection to APC U.S. sexual assault hotlines flooded with calls Dangote blames unemployment for violent killings in Nigeria Benue Leaders should stay at home and be visited by Presidency – Shehu Sani Breaking: EFCC Arraigns Justice Yinusa Over Corruption Allegations Senate Gives IGP 14 Days To Arrest Perpetrators Of Benue Attacks FCTA demolishes Patience Jonathan’s property

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (314,454 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (303,572 views) Shameless Genevieve Nnaji exposes breasts in public (243,771 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (200,900 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (189,640 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (178,893 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (155,179 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (139,075 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (135,821 views) Lagos plane crash: Journalist releases victims’ names (124,117 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (121,255 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (118,686 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (33) Business (2,849) Business Verdict (32) Columnists (790) Complaints & Requests (94) Enterprise & Opportunities (200) Entertainment (431) Features (541) Global Business Monitor (222) International (1,741) Interviews (139) Live Commentary (28) Love Matters (100) News (31,942) Opinion (864) Pidgin (10) Politics (4,351) Religion (666) Sports (1,405) Stock Watch (25) AMA & Al Jazeera Global Update

 

CBN Banner advert

CBN Words on marble

 

 

Thierry Henry in Lagos Nigeria

 

APO Group Partner

 

CLASSIFIED ADS

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement



 

 

CLASSIFIED ADS

Loss Off Your Belly Fats, Upper Arm Fat and Body Fats In 2weeks Time.. Click HERE To Start Now!

Let us build the most comprehensive online database of worthy and credible Nigerians from all walks of life. It is worth doing!