NLNG Remits Over $110 Billion To Federal Government, Pay $18 Billion Dividend

Yemisi Izuora

The Nigeria Liquified Natural Gas, NLNG has disclosed the remittance of over $110 billion to the federation account since 1999.

Tony Attah, Managing Director of the company disclosed this in Abuja, yesterday during the Sales and Purchase Agreement for domestic supply of LNG.

Attah, said the company is well respected internationally because of its solid reputation as a Responsible, Trusted and Reliable supplier of LNG and also at the home front, having distinguished itself as a development partner with Nigeria’s Government.

He said its six-train plant has generated more than US$110 billion in revenue since it began operation in 1999.

Equally, the Nigeria LNG has paid about US$18 billion as dividends to the Federal Government of Nigeria, through the state-owned Nigerian National Petroleum Corporation (NNPC) 49 per cent shareholding and equivalent amount as dividend to the other three shareholders in the same time period.

“We have also paid about US$15 billion for feed gas purchases to the Federal Government of Nigeria through its shareholding in NNPC and about USD9 billion in taxes.” he said also.

Attah, said the company remains a major influencer in the domestic LPG sector and have dedicated 450,000 tons per annum ktpa of LPG to the market with the focus to support the use of cleaner energy to protect citizens and the environment from the hazards posed by other cooking fuels by encouraging the use of cooking gas in Nigeria.

He restated the company’s commitment, as a corporate entity, to unlocking gas utilization which is now backed by the execution of Sales and Purchase Agreements (SPAs) to supply 1.1 Million Tonnes Per Annum (MTPA) of LNG on DES basis to Asiko Power Limited, Bridport Energy Limited and Gas-Plus Synergy Limited.

The SPAs will facilitate the project execution and development of infrastructure led by off-takers to aid LNG delivery into the domestic market.

The execution of these SPAs, he explained follows a Domestic LNG (DLNG) Workshop which was held in November 2019 to stress test the delivery model with industry stakeholders and a series of engagements to identify suitable actors to co-create the initiative and stimulate market interest for potential off-takers.

“With Nigeria’s enormous gas reserves, I am not in doubt that with the right drive from the government and the support of corporate organizations, we as a nation can stand with our head held high to be counted among major players. The government has demonstrated its readiness to take the gas sector to the next level by declaring this decade our nation’s Decade of Gas.

“We believe this will be the decade for us to leverage on our gas reserves to accelerate our power generation solutions through Gas-to-Power projects. It will be the decade when as a nation we stop reporting deaths from pollution through the use of wood and solid fuels as domestic energy sources. And it will be the decade for empowering local SMEs to take advantage of the various investment opportunities that the Decade of Gas will attract.” he stated.

In addition to the Domestic LNG Scheme, the company is forging ahead with the Train 7 project with capacity to attract about $10bn in foreign direct investment.

It is also looking to expand the LPG value chain by increasing our supply to the domestic market, guaranteeing LPG supply and enhancing its affordability, and enabling the development of a value network for a sustainable ecosystem.

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