NLNG, others sign pact on new vessel to boost LPG supply

Image result for nigeria liquefied natural gas limitedNigeria Liquefied Natural Gas Limited (NLNG), and E. A. Temile and Sons Company Limited, have  sealed an agreement for the construction of a new liquefied petroleum gas (LPG) vessel to boost supply to domestic market. E. A. Temile and Sons Company is a wholly Nigerian company, under a contract with Hyundai Mipo Dockyard, South Korea.

According to NLNG, the new LPG vessel will boost volume and availability of cooking gas as well as consolidate the company’s contributions to deepen the domestic LPG industry and increase consumption of the clean gas. The new LPG vessel will be built  under a contract with Hyundai Mipo Dockyard, South Korea and chartered to NLNG.

At a contract signing ceremony between E.A Temile and Sons Limited and Hyundai Mipo Dockyard in London, NLNG Managing Director and Chief Executive Officer, Tony Attah, remarked that the signing ceremony was ground-breaking for NLNG because it supports the company’s aspiration, firstly, to further help develop the domestic LPG market and promote the growth of indigenous companies and Nigeria’s economy.

Attah said: “NLNG remains the single largest supplier of Liquefied Petroleum Gas (LPG) over 50 per cent in Nigeria and looks to enable its expansion in future. We produce the LPG in our plant in Bonny, Rivers State, and transport it by sea to Lagos from where it is distributed to every part of the country. This assures the product availability, accessibility, and affordability which are central to us as a company. NLNG’s domestic LPG intervention scheme aligns with its business focus of bringing energy to the world and helping to build a better Nigeria.

“A World Health Organisation (WHO) report on Household Air Pollution and Health published in May 2018, affirmed that about four million people die prematurely annually from illness attributable to air pollution from inefficient cooking practices, using solid fuels and kerosene. And local data suggest that about 100,000 women and children die in Nigeria annually from the same causative factors. We believe that the expansion and strengthening of the domestic LPG market can help to stem this tide in Nigeria.”

On NLNG’s contribution to Nigerian Content, he said: “We work closely with the Nigeria Content Development and Monitoring Board (NCDMB) to ensure compliance with the Nigeria Oil and Gas Industry Content Development (NOGICD) Act 2010, consequent upon which we signed a Business to Business Service Level Agreement (SLA) with in June 2017, the first of its kind in the relationship between the oil and gas industry operators and NCDMB in Nigeria.

“Examples of our Nigeria Content initiatives implementation include BGT Plus Project where over 80,000 metres of cable, manufactured in Nigeria by Nexans Kabelmetal, as well as 9,000 pieces of anodes, produced by Metec WA, were exported to South Korea for utilization  in the construction of 6 new Dual Fuel Diesel Engines (DFDE) LNG carriers.

“PCMN/Berger Paints Nigeria Limited exported over 400,000 litres of Paints and Coatings and IO Furniture/Vina produced and exported movable furniture to South Korea, all for the construction of the LNG carriers. In addition, Nigerians were involved in the project at the Hyundai Heavy Industries (HHI) and Samsung Heavy Industries (SHI) shipyards in South Korea.

“The benefitting indigenous companies, some of whom were exporting their products for the very first time, earned revenues in excess of $10 million and international reputation as exporting companies. All these are testaments that great things can truly happen once we set our minds to achieve them. Same way, we believe and are working assiduously towards achieving the final investment decision (FID) for NLNG Train 7, which in addition to raising our LNG production capacity by 36%, from 22,000 million tonnes per annum to 30,000 million tonnes per annum, also has capacity for 1.0 MTPA in the DLPG market,” he said.

Also at the ceremony, Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Kesiye Wabote, said the signing ceremony was a manifestation of the local content journey in the LPG sector, adding: “I commend NLNG for this bold endorsement of our local capacities and capabilities. It is certainly a confidence building move across board and I expect several operators and service providers to get inspirations from this milestone event and see the possibilities in our local content practice rather than the difficulties.”

The 23,000 cubic metres vessel will be delivered in 2020.