Nigeria LNG

Last updated

Nigeria LNG Limited (NLNG) is a liquefied natural gas (LNG)-producing company and a liquefied natural gas plant on Bonny Island, Nigeria. [1]

Contents

History

Nigeria LNG Limited was incorporated as a limited liability company on 17 May 1989, to produce LNG and natural gas liquids (NGL) for export. [1] The plant was built by TSKJ consortium, which was led by former Halliburton's subsidiary KBR. Other participants of the consortium were Snamprogetti, Technip and JGC Corporation. [2] The first train came into operation in 1999. [3]

In September 1999, the Bonny plant started production and was expected to send its first shipment in October. It started with sales contracts with Enel for 3.5 billion bcm/y, Enagás for 1.6 bcm/y, BOTAŞ for 1.2 bcm/y, and Gaz de France for 500 million cu m/year. The feed gas was provided by Shell, Elf Aquitaine and Agip. [4]

There are investigations[ when? ] concerning alleged bribes of $180 million paid by the TSKJ consortium of engineering companies to Nigerian government officials [5] (not Nigeria LNG staff) in the period 1994–2004 to obtain contracts worth more than $6 billion to win the contract to build Nigeria LNG facilities. [2] KBR pleaded guilty, in February 2009, to paying bribes to Nigerian government officials to secure four contracts to build and expand the Nigeria LNG terminal. [6] In Italy, Milan's prosecutors office has begun legal proceedings to bar Eni and Saipem, owners of Snamprogetti, from doing business with NNPC because of these alleged bribes paid by the TSKJ consortium to Nigerian government officials. [2] Snamprogetti will pay $240 million in fines to avoid prosecution by the United States Department of Justice for violation of the Foreign Corrupt Practices Act.[ citation needed ] In addition, Eni and Snamprogetti will pay $125 million to settle a U.S. Securities and Exchange Commission case. [7]

In 2013, NLNG signed an agreement with Samsung Heavy Industries and Hyundai Heavy Industries for the delivery of 4 LNG carrier ships that cost US$1.2 billion and that brought NLNG's total fleet to 23 ships. [8]

In 2015, NLNG reported a 36.6% drop in its revenue due to declining oil and gas prices (US$6.84 billion in 2015, US$10.8 billion in 2014). [9] 2015 was the year that NLNG reached the threshold of US$85 billion of LNG exports in 15 years of business. [10]

In July 2016, Tony Attah was named managing director and CEO of Nigeria LNG. He replaced Babs Omotowa who led the company for 5 years and returned to Shell International in the Hague, Netherlands, after his departure. [11] In August 2016, Shell declared Force majeure on most of its feed gas to the facility after a gas leak on Shell's Eastern Gas Gathering System (EGGS-1), but production kept going thanks to alternative sources of gas supplies. [12]

In July 2021, the board of directors appointed Philip Mshelbila as the new Managing Director and Chief Executive Officer of the company. He took over from Tony Attah who was appointed by the board in July 2016. [13] [14]

In February 2022, the board of directors appointed Olalekan Olufemi Ogunleye as the new deputy managing director of the company. He took over from Sadeeq Mai-Bornu who was appointed by the board in April 2016. [15] [16]

Operations

Nigeria LNG Limited is jointly owned in the following proportions: Nigerian National Petroleum Corporation (NNPC) owns 49%, Shell Gas B.V. owns 25.6%, Total LNG Nigeria Ltd owns 15% and Eni International owns 10.4%. [1]

Nigeria LNG Limited operates six liquefaction units (LNG trains) producing 22 million tonnes per year of LNG. [3] This amounts to roughly 10% of the world's LNG consumption. [17] Trains 1, 2 and 3 have production capacities of 3.2 million tonnes per year, whilst trains 4, 5 and 6 have capacities of 4.1 million tonnes per year each. [18]

The base project (Trains 1 and 2) which cost US$3.6 billion, was financed by NLNG's shareholders. [1] The third train (expansion project), including additional storage, cost US$1.8 billion and was funded by shareholders as well as reinvested revenue from the base project. [2] The NLNGPlus project (Trains 4 & 5) cost US$2.2 billion and was funded with a combination of internally generated revenue and third party loans amounting to US$1.06 billion. [19] Train 6 (NLNGSix project) cost US$1.748 billion, financing was handled by shareholders. [20] The total cost of building six LNG trains was US$9.348 billion. [21]

The company has a wholly–owned subsidiary set up in 1989, [1] Bonny Gas Transport (BGT) Limited, which provides shipping services for NLNG. [22] BGT was set up in Bermuda with an ordinary equity holding from Nigeria LNG Limited and preferential equity holding from the sponsors, NLNG's shareholders. [23]

Another wholly owned subsidiary of Nigeria LNG Limited is Nigeria LNG Ship Manning Limited (NSML), which was set up in 2008 to give dedicated attention to providing, developing and managing high calibre personnel for NLNG's maritime business. [24]

Sponsorship

Nigeria LNG Limited (in partnership with the Nigerian Academy of Science and the Nigerian Academy of Letters) sponsors Nigeria Prize for Science and the Nigeria Prize for Literature. [25]

Related Research Articles

<span class="mw-page-title-main">Eni</span> Italian multinational energy company

Eni S.p.A., acronym for and formerly legally known as Ente nazionale idrocarburi, is an Italian multinational energy company headquartered in Rome. It is considered one of the "supermajor" oil companies in the world, with a market capitalization of €50 billion, as of 31 December 2023. The Italian government owns a 30.5% golden share in the company, 1.99% held through the Ministry of Economy and Finance and 28.5% through the Cassa Depositi e Prestiti. The company is a component of the Euro Stoxx 50 stock market index.

Blue Stream is a major trans-Black Sea gas pipeline that carries natural gas to Turkey from Russia. The pipeline has been constructed by the Blue Stream Pipeline B.V., the Netherlands based joint venture of Russian Gazprom and Italian Eni. The Blue Stream Pipeline B.V. is an owner of the subsea section of pipeline, including Beregovaya compressor station, while Gazprom owns and operates the Russian land section of the pipeline and the Turkish land section is owned and operated by the Turkish energy company BOTAŞ. According to Gazprom the pipeline was built with the intent of diversifying Russian gas delivery routes to Turkey and avoiding third countries.

<span class="mw-page-title-main">Trans Austria Gas Pipeline</span>

The Trans Austria Gas (TAG) pipeline is a natural gas pipeline that leads from the Slovak-Austrian border at Baumgarten an der March to Arnoldstein in the south, near the border with Italy. Natural gas originating from Russia is transported to and used in Italy and Austria. In addition, it supplies Slovenia through the SOL Pipeline System, which branch-off at Weitendorf.

Novatek is Russia's second-largest natural gas producer, and the seventh-largest publicly traded company globally by natural gas production volume. The company was originally known as OAO FIK Novafininvest. Novatek is based in the Yamalo-Nenets Autonomous Region in West Siberia, and maintains a head office in Moscow. In the 2020 Forbes Global 2000, Novatek was ranked as the 316th-largest public company in the world.

<span class="mw-page-title-main">Medgaz</span> Natural gas pipeline from Algeria to Spain

Medgaz is a submarine natural gas pipeline between Algeria and Spain.

The Atlantic LNG Company of Trinidad and Tobago is a liquefied natural gas (LNG) producing company operating a liquefied natural gas plant in Point Fortin, Trinidad and Tobago. Atlantic LNG operates four liquefaction units (trains). Train 4, with a 5.2 million tonnes per year production capacity, is among the world's largest LNG trains in operation.

Angola LNG is a liquefied natural gas (LNG) liquefaction plant in Soyo, Angola. The first such facility in Angola, it has produced gas since 2013. It cost $12 billion to construct. It has a capacity of 5.2 million tonnes per year, and serves both the domestic and export markets. It is owned and operated by Angola LNG Limited, a partnership of energy companies including Chevron Corporation, Sonangol Group, and TotalEnergies.

RasGas Company Limited was a liquefied natural gas (LNG) producing company in Qatar. It was the second-biggest LNG producer in Qatar after QatarEnergy LNG. RasGas operated seven LNG trains located in Ras Laffan Industrial City. It was merged with Qatargas on 1 January 2018.

Liquid Niugini LNG is a natural gas liquefaction project in Papua New Guinea. It is developed by Liquid Niugini Gas Ltd, and owned by PNG LNG Inc., a Bahamas-based parent holding company.

<span class="mw-page-title-main">Yemen LNG</span>

Yemen LNG is the first natural gas liquefaction (LNG) project in Yemen. The LNG plant is located in Balhaf.

Saipem S.p.A. is an Italian multinational oilfield services company and one of the largest in the world. Until 2016 it was a subsidiary of Italian oil and gas supermajor Eni, which retains approximately 30% of Saipem's shares.

Baltic LNG is a liquefied natural gas plant under construction on the Gulf of Finland of the Baltic Sea in Ust-Luga, Leningrad Oblast, Russia. The plant's capacity would be 13 million tons of LNG per year. The planned launch date has changed many times, and according to the latest plans, the first line will start operating in 2024 and the second line in 2025. The cost of the project is estimated at 2.4 trillion rubles. On October 7, 2021, it was announced that the LNG plant might be expanded to three lines. The third line could be introduced by 2026, which would increase the plant's capacity to 20 million tons per year, reaching the capacity of Arctic LNG-2.

This page summarizes projects that propose to bring more than 20,000 barrels per day (3,200 m3/d) of new liquid fuel capacity to market, with the first production of fuel beginning in 2013. This is part of the Wikipedia summary of oil megaprojects.

SEGAS LNG is a liquefied natural gas (LNG) complex in Damietta, Egypt. It is located 60 kilometres (37 mi) west of Port Said. The name SEGAS comes from the Spanish Egyptian Gas Company. The complex consists of a single LNG train capable of liquifying up to 5 million tons of natural gas per year and is one of two LNG export plants in Egypt.

The Pearl GTL is a gas to liquids (GTL) plant based in Ras Laffan, Qatar. It converts natural gas into liquid petroleum products. It is the largest GTL plant in the world. The first commercial shipment from the Pearl GTL was made on 13 June 2011. Pearl GTL received the 2021 "Asset of the Year" award by Shell.

Iran LNG, also known as NIOC LNG, is a LNG plant under development at Tombak Port, approximately 50 kilometres (31 mi) north of Assaluyeh Port and 15 kilometres (9.3 mi) southeast of Kangan, Iran.

Escravos GTL is a gas to liquids (GTL) project based in Escravos region, Nigeria. It is located in the Niger Delta about 100 kilometres (62 mi) southeast of Lagos. The plant converts natural gas into liquid petroleum products.

<span class="mw-page-title-main">Muhammadu Dikko Yusufu</span>

Alhaji Muhammadu Dikko Yusufu, also known as MD Yusufu or MD Yusuf was a Nigerian policeman, Inspector General of the Nigerian Police Force, public servant and politician. Yusufu attended Higher Education at the Institute of Administration, Zaria in 1954 and University of Oxford where he was trained as administrative officer. Yusufu was the great grandson of Sarkin Katsina Muhammadu Dikko.

<span class="mw-page-title-main">Bonny Gas Transport</span>

Bonny Gas Transport is a subsidiary of Nigeria LNG or NLNG which itself is an incorporated joint-venture of Nigerian National Petroleum Corporation (NNPC), Shell Gas B.V., TotalEnergies Gaz & Electricite Holdings and Eni International N.A. N. V. S.àr.l. It owns and operates a number of LNG tankers.

Nigeria LNG Train 7 is an expansion under construction at the Nigeria LNG Terminal in Bonny Island, Nigeria. It is one of the most ambitious construction projects in Nigeria, second only to the nearly completed Dangote refinery.

References

  1. 1 2 3 4 5 "The Company - Nigeria LNG". Nigeria LNG Limited. 2009. Retrieved 2016-12-21.
  2. 1 2 3 4 Begum, Aleya (2009-10-21). "Judge delays Eni Nigeria ruling" . Upstream Online . NHST Media Group. Retrieved 2009-11-08.
  3. 1 2 Orji, Udenna (2009-09-28). "Nigeria Set to Become World's Second-largest LNG Supplier - Official". Leadership. Downstream Today. Retrieved 2009-11-08.
  4. ↑ "Nigeria LNG starts up Bonny LNG plant" . Oil & Gas Journal . PennWell Corporation. 27 September 1999. Retrieved 21 December 2016.
  5. ↑ "Haliburton and Nigeria: A chronology of key events". 234 Next. 2009. Archived from the original on 2011-10-08. Retrieved 2009-11-09.
  6. ↑ Davis, Jonathan (2009-02-09). "KBR booked in Nigeria graft case" . Upstream Online . NHST Media Group. Retrieved 2009-11-08.
  7. ↑ Perez Rivas, Claudia (2010-07-07). "Duo to pay $365m in bribe case" . Upstream Online . NHST Media Group. Retrieved 2009-11-08.
  8. ↑ Ohuocha, Chijioke (29 July 2015). "Nigeria LNG to take delivery of four carrier ships this year -CEO". Reuters. Retrieved 21 December 2016.
  9. ↑ "Nigeria LNG's revenue drops 37 pct in 2015". LNG World News. 14 April 2016. Retrieved 21 December 2016.
  10. ↑ "Nigeria LNG exports reach $85 bn in 15 years". Agence France-Presse. 20 June 2015. Retrieved 21 December 2016.
  11. ↑ "At NLNG, Babs Omotowa hands over to Tony Attah" (Press release). Nigeria LNG. 14 July 2016. Retrieved 21 December 2016.
  12. ↑ Okonkwo, Omono (18 August 2016). "Nigeria LNG still exporting". Natural Gas World. Retrieved 21 December 2016.
  13. ↑ Pekic, Sanja (2021-07-12). "New CEO of Nigeria LNG appointed". Offshore Energy. Retrieved 2023-05-24.
  14. ↑ "Management Team". www.nigerialng.com. Retrieved 2023-05-24.
  15. ↑ Cyril (2022-02-23). "NLNG gets new DMD, as Mai-Bornu bows out". The Sun Nigeria. Retrieved 2023-05-24.
  16. ↑ Report, Agency (2022-02-24). "NLNG deputy MD bows out as tenure ends". Punch Newspapers. Retrieved 2023-05-24.
  17. ↑ Pitt, Anthea (2008-11-28). "NLNG declares force majeure" . Upstream Online . NHST Media Group. Retrieved 2009-11-08.
  18. ↑ Lansdell, Ronald (2006). Coping with security challenges of natural gas markets (PDF). IEA Gas Security Workshop. Paris: International Energy Agency. Archived from the original (PDF) on 2011-06-11. Retrieved 2009-11-02.
  19. ↑ "NIGERIA LNG LIMITED (NLNG) - ENERGY COMPANY". School Software Pro. 2023-03-06. Retrieved 2023-05-02.
  20. ↑ "Facts and Figures - Nigeria LNG". Nigeria LNG. 2009. Retrieved 2009-11-02.
  21. ↑ "Nigeria LNG - OilfieldWiki". www.oilfieldwiki.com. Retrieved 2023-05-02.
  22. ↑ "BGT Milestones". Bonny Gas Transport Limited. 2009. Archived from the original on 2006-01-08. Retrieved 2009-11-02.
  23. ↑ "Nigeria LNG (NLNG) Scholarships and internships". WeMakeScholars. Retrieved 2023-05-02.
  24. ↑ "Nigeria LNG Ltd Company Profile". Global Business Coalition. 2010. Archived from the original on 2011-07-26. Retrieved 2010-09-15.
  25. ↑ "Nigeria Prize for Literature (History and Guidelines)". Nigeria LNG. 2009. Retrieved 2009-11-23.

4°25′33″N7°09′11″E / 4.4258°N 7.1531°E / 4.4258; 7.1531

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.