President Muhammadu Buhari has directed International Oil Companies (IOCs) to carry out further gas projects in the country in order to tap the country’s over 600 trillion cubic feet of proven gas reserves.

 

The charge was delivered by the President yesterday at the virtual groundbreaking ceremony for the Nigeria Liquefied Natural Gas (NLNG) Train 7 project in Bonny Island, Rivers State.

According to him, the recently launched Gas Initiative will transform Nigeria into a major gas and industrialised nation, with gas playing a significant role as a revenue earner, fuel for industries, and critical feed for petrochemicals and fertiliser plants.

As a result, he asked the company to expedite the delivery of Train 7 in order to allow for the start of the Train 8 project.

“As we kick off the Train 7 project today, I look forward to the development and execution of more gas projects by International Oil Companies (IOCs) and indigenous operators, as well as more Trains from Nigeria LNG, to harness the over 600 trillion cubic feet of proven gas reserves we are endowed with”, said the President.

 

He reassured Nigerians and potential investors in the oil and gas sector that the Federal Government will continue to create an enabling environment for the sector to thrive and provide the full advantages of gas to the people.

”Let me use this opportunity to commend the shareholders of NLNG, the Federal Ministry of Petroleum, NNPC and the NCDMB and other stakeholders for very exemplary collaboration which has culminated in this great opportunity for Train 7.

 

President Buhari recalled the story of Nigeria LNG as one, which he had been ”passionately associated during the formative years of the project.”

He said: ”As Minister of Petroleum Resources, I kicked off our first foray in LNG Business in 1978. At the time it was already apparent that Nigeria was mainly a gas-rich country with little oil.

”It, therefore, gives me great joy to see the organization transform from just a project in the early 90s to a very successful company with over 20 years of responsible operations and a steady supply of Liquefied Natural Gas, Liquefied Petroleum Gas and Natural Gas Liquids into the global market.

”This is proof that Nigeria has a great capacity to deliver value to the world by harnessing our natural resources”.

 

The President was particularly pleased that NLNG, as Nigeria’s first LNG business, had diligently demonstrated the viability of the gas sector over the years, with the sector now contributing around 1% of Nigeria’s GDP.

“Over the years, NLNG has generated $114 billion in revenue, paid $9 billion in taxes, $18 billion in dividends to the federal government, and $15 billion in feed gas purchases.

Similarly, Timipre Sylva, Minister of State for Petroleum Resources, stated that the groundbreaking of Train 7 guarantees more dividends to all stakeholders in terms of reduced gas flaring, increased revenue to the nation and shareholders, increased job opportunities, particularly during the construction phase, and increased social investments.

Anthony Attah, NLNG’s Managing Director and Chief Executive Officer, stated that Train 7 will boost the company’s overall capacity to 30 million tonnes per annum (mtpa) from the existing 22 million mtpa, while also delivering enormous value to the nation and its people.

According to Attah, the project will bring in around $10 billion in foreign direct investment to Nigeria, as well as 12,000 direct jobs in Bonny Island and 40,000 indirect construction jobs.

He added that the initiative would help to strengthen local capabilities and enterprises by completing construction, fabrication, and major procurement entirely in the country.