NLNG finds bigger market in Japan

The Nigeria Liquefied Natural Gas (NLNG) Limited has found a bigger market in Japan, after the United States (US) stopped patronising it. The US stopped buying gas from Nigeria following its discovery and production of shale gas.
NLNG Managing Director Babs Omotowa said in Lagos during the company’s presentation of its 2014 facts and figures that the US accounted for 35 per cent of its market. But that doesn’t exist because of shale oil, he said, adding that NLNG has found even a bigger market in the Far East. “Japan is our largest market now,” he said.

He explained that the loss of the US market would not affect NLNG’s operations and sales because the supply contracts are long term, which will last for over 20 years. NLNG, he said, is also exploring other markets depending on availability of gas.

The NLNG chief said the  Train 7 project is on course, explaining that the delay in the construction of the train is caused by gas supply. According to him, the non-passage of the Petroleum Industry Bill (PIB) and funding are some of the challenges affecting the gas suppliers of the project. He however noted that the pre-final investment decision (FID) processes are being concluded.

He noted that the NLNG accounts for seven per cent of global LNG supplies and expects to increase to 10 per cent when Train seven comes on stream.

The company is rated the fastest growing LNG project in the world and operates six trains which produce 22 million metric tons of LNG yearly, adding that this will grow to 30 million metric tons with Train 7 in operation.

Omotowa said NLNG contributes four per cent of Nigeria’s Gross Domestic Product (GDP), adding that this may change if the rebased-GDP is considered.

On other contributions to the economy, he said: “Since inception, we have shipped 3000 LNG cargoes to customers globally, which is over four trillion cubic feet of associated gas that ordinarily would have been flared. With this, we have reduced gas flaring by upstream companies from over 60 per cent to 11 per cent.

“The company pays corporate income tax of over N200 billion per annum, Rivers State Government earns over N6 billion per annum from personal income taxes, and Bonny Local Government earns over N88 million yearly as tenement rate, among others.

Omotowa said Nigeria LNG has paid over $27billion dividend to the shareholders of the company since inception, adding that Nigerians have earned $50 billion from the company since inception.