$5BN TRAIN-7 NLNG PROJECT REACHES 52% COMPLETION LEVEL

$7.6 billion was required to ramp up the country's oil production to its former 2.1 million barrels per day (mbpd) in the next two years.

A statement from NCDMB noted that the high-level engagement was part of a three-day Nigerian content stakeholders’ retreat, which provided a platform for the two industry leaders to sign an agreement on the oil and gas e-market place.

The agreement would see the rollout of tender opportunities from NLNG on the e-market electronic platform, thereby implementing a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

The oil and gas e-market place is a virtual platform for buyers and sellers of goods and services in the oil and gas industry. It is expected to allow for speedy and transparent transactions.

Mshelbila stressed that the relationship between his organisation and NCDMB had been conscientiously nurtured over the years, with both parties striving ceaselessly to fulfil statutory obligations. He acknowledged the crucial role played by the board in the take-off of the Train-7 project and assured of the company’s resolve to stretch its local content practice beyond mere compliance with the provisions of the NOGICD Act.

“We cannot have a better Nigeria unless we develop the capacities of Nigerians,” Mshelbila stated. He restated the vision of his company to be, “a globally competitive LNG company, helping to build a better Nigeria.”

Mshelbila bemoaned the difficulties the company currently faced in getting adequate gas supply and the resultant under-production by its six plants to below 50 per cent of their total installed capacity.

He said feed gas to the NLNG plants came mainly from some of its joint venture (JV) partners, including Shell Petroleum Development Company (SPDC) Limited, Total Energies, and Nigerian Agip Oil Company (NAOC).

Mshelbila also lamented that their supply pipelines suffered recurrent vandalism, coupled with facility failure and low production from aging wells, resulting in serious disruption of supplies. He explained that NLNG was exploring several options to mitigate the challenge, including partnering with critical security agencies to curtail vandalism on the pipelines and working with their JV partners to increase their gas production.

He added that the NLNG board of directors had also given approval for the company to procure gas from other international and indigenous gas producers in the country, with the goal of enhancing the performance of Trains 1-6.

Mshelbila expressed deep concern that deep-water gas projects that would provide feed gas for the upcoming Train-7 and other future expansions had not been commenced by the international oil and gas companies (IOCs), despite the significant progress made in the construction of the Train-7 plant. He said the situation could lead to the completion of the plant without gas being available for it to liquefy.

He solicited the board’s support for the development of the deepwater gas projects, which were critical to keep Trains 1-6 full and provide gas for Train 7 and future expansion plans.

Responding, the executive secretary of NCDMB affirmed that the e-marketplace would be a game-changer that would enhance the Service Level Agreement (SLA) guiding the relationship between NCDMB and NLNG. He noted that the board decided to start with NLNG because of the company’s record of excellence.

Wabote said the intention of the e-marketplace was to increase transparency in the tender process, remove human interference in business processes, move things electronically, and achieve better results. He described the Final Investment Decision (FID) and other critical steps that were taken for the Train-7 project at the height of COVID-19 as proof of stakeholders’ enthusiasm for the project.

However, Wabote expressed concern over the challenge of inadequacy of gas supply and promised to support the company by approving third party gas injectors and sanctioning new deep-water gas projects. He added that most of the marginal operators had also found gas but part of their challenge was where to send the gas.

Wabote recalled that at the initial phase of the company’s take-off, “The management level had 90 per cent expatriates and 10 per cent Nigerians.” But he expressed joy that the reverse was now the case.

On milestones achieved by the gas company since inception, its General Manager, Production, Nnamdi Anowi, said NLNG had as its core areas of operation liquefaction, transmission, transportation, marketing and sales. Anowi disclosed that over 5,770 LNG cargoes had been delivered as of September 2023, while over 500,000 tons of Liquefied Petroleum Gas (LPG) had been produced and sold to markets overseas and in Nigeria.

Avuru: Nigeria Needs about $7.6bn Investment to Return Oil Production to 2.1mbpd in Two Years

For the umpteenth time, Mr. Austin Avuru called for measures to retool the ailing Nigerian petroleum