By Sebastine Obasi

The Nigeria LNG Limited, NLNG, said it has spent over $9.3 billion to develop its six trains, which put it in good stead to deliver about seven percent of the global LNG supply.

In a publication made available to Vanguard, NLNG stated that the amount was spent between 1990, when train one, the base project was started to 2007, when train six came into operation.

A breakdown of the figure shows that trains one and two cost $3.6 billion and was financed by NLNG’s shareholders. Train 3, including additional tankage, cost $1.8 billion. The financing was carried out in a manner similar to that of the base project, while much of the cost of the new LNG tankers was borne by third party financiers.

Excluding ship acquisition, the cost of trains four and five (NLNGPlus Project) was said to have cost $2.2 billion. These were funded with a combination of internally generated revenue and third party loans amounting to $1.06 billion.

The final investment decision, FID for train six was taken in July 2004 for the sum $1.74 billion. It was principally financed from internally generated funds.

With six trains currently operational, the entire complex is said to be producing 22 million tonnes per annum, MTPA, of LNG and five MTPA of liquefied petroleum gas, LPG, and condensate from 3.5 billion standard cubic feet, SCF, per day of natural gas intake.

But final decision is yet to be taken on train seven, seven years after train six became operational. No reason was given for the delay. Vanguard however gathered from reliable sources that the project has been delayed due to lack of political will.

As regards local content, NLNG stated that it has partnered with Hyundai Heavy Industries, HHI, and Samsung Heavy Industries, SHI, to promote the development of a ship repair yard in Badagry, Lagos. According to NLNG, the aim is to bridge the gap created by the absence of an operational dockyard to cater for the repair and maintenance of Very Large Crude Carriers, VLCC, LNG carriers, large and medium size carriers, drilling rigs and support vessels.

In reaction to the shortage of gas for domestic use, NLNG said it has committed to delivering 250,000 metric 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.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49 percent), Shell (25 percent), Total LNG Nigeria Limited (15 percent) and Eni (10 percent).