Remarks on NLNG’s Contribution to the Nigerian Economy at the Nigeria International Summit, NIPS 2020 in Abuja on 10th February, 2020
Protocols
Distinguished ladies and gentlemen, standing on this podium today, I am fully assured that the annual Nigeria International Petroleum Summit is attracting the highest level of attention from industry players and relevant stakeholders on the continent to fully participate in the global
conversations about the dynamic energy mix.
Nigeria’s growing response to the demand for cleaner energy sources to power the world has accentuated the critical role that our premium crude oil and natural gas resources play in that space. The focus of this year’s conference on ”Widening the Integration Circle: Technology, Knowledge, Sustainability and Partnership”, is a pointer to the fact that our country, and ultimately our continent is conscious of the need to strategically harness all these elements. They will certainly
give us an edge to maximally benefit from the volatile and highly competitive global energy sector.
ln the past 20 years, Nigeria LNG has resiliently maintained top rating as a significant player and the 5th major supplier of global LNG with the export of over 4500 LNG cargoes delivered safely
worldwide and still counting.
The addition of Train 7 to our current six-train plant will add another eight million metric tonnes of LNG to the current sustained 22mil|ion metric tonnes production capacity of our plant. That will keep Nigeria prominently on the list of the top 7 suppliers of global LNG. This is an enviable position for an African country to achieve in the face of our evolving technological advancement
which is managed by highly skilled Nigerian professionals of varying competencies.
The very quick wins from Train 7 project for Nigeria is the creation of jobs for our teaming youths, netting up to 12,000 direct iobs at the construction phase as well as the associated skills
acquisition through a deliberate effort at technology transfer.
Riding on the back of a robust Nigerian Content plan endorsed by the Nigerian Content Development Monitoring Board (NCDMB), 55% of the Engineering activities for Train 7 will be carried out in-country and 55% of all procurement for execution of the proiect will be undertaken by Nigerian vendors.
100% of the installations and construction will happen in Nigeria and the entire proiect will attract huge Foreign Direct Investment to the Nigerian economy. Other benefits include the emergence of
upstream and other associated projects that will bolster our economy.
\Mth conversations like the ones we are having here at NIPS, there is no doubt that we can all build synergies that should propel Nigeria LNG to sustain its winning streak and support the
emergence of new LNG suppliers in the country and the continent at large.
Our motivation to build and operate Train 7 is heightened by the proven success recorded by Nigeria LNG in the past 20 years of operation. In its current state, the company has significantly
reduced the environmental hazards arising from gas flaring.
To date, the company has converted about 191.5bcm (billion standard cubic metres) or 6.8ch (trillion cubic feet) of Associated Gas (AG) to Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs), thus reducing gas flaring by Upstream Companies from over 60% when it
commenced operations to less than 20% currently.
For a Nigerian company managed by 100% Nigerian Management team and 95% indigenous workforce, it is a daunting teat to be reputed as the first worldwide in plant reliability and the
single most expansive LNG plant on the continent. We can sustain this and do much more. Thank you for your attention.
Engr. Adeleye Falade, GM, Production, Rep. Tony Attah, MD/CEO
END
