Nigeria LNG Limited (NLNG) is a major player in the global LNG business. NLNG was incorporated as a Limited Liability company on May 17, 1989, to harness Nigeria's vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for export.
The establishment of NLNG as a company is backed by the Nigeria LNG (Fiscal Incentives, Guarantees and Assurances) Act. Cap N87, Laws of Federation of Nigeria 2004 which amongst other things, provides for the guarantees and assurances by the Federal Government of Nigeria to the Company and its Shareholders.
Our History
Interest in LNG started in the 1960s when the idea of monetising flared gas was mooted. The Nigerian government set up a panel to look at the proposal and make recommendations on the feasibility of a LNG project in Nigeria. The panel recommended two LNG projects of three trains respectively— the first LNG project in the east of the Niger Delta and the second LNG project in the west of the Niger Delta. The Federal Executive Council approved the recommendations in April, 1975. However, attempts to progress the project were scuttled by a change of government.
By 1976, the Bonny LNG Limited (BLNG) was incorporated. The project was planned to build and operate a natural gas liquefaction plant capable of supplying up to 650 trillion Btu of LNG yearly. Had the project been realised at that time, it would have been the largest LNG project in the world. The plant capacity of 650 trillion Btu yearly was to be delivered by a fleet of 18 ships dedicated to a 20-year contract period. The United States was the planned prime destination, although the plan was later expanded to include Europe.
The progress on BLNG was again impacted by another change in leadership in the Nigerian government. By 1977, the investors downgraded their participation in the LNG project. In 1979, there was a transition to civil rule. However, this did not do much in advancing the BLNG project as inability to get the required funding hindered investment in gas.
The project again had to be delayed in 1982 due to a drop in oil price that impacted greatly on the country’s revenue. The investors in the project pulled out which marked the end of Bonny LNG.
Between 1983 and 1985, the Federal Government set up another LNG working committee. This committee was inaugurated in March 1985 under the chairmanship of Mr. Gamaliel Onosode.
The committee had the responsibility of realising the LNG project in Nigeria. The first task the committee performed was to review the terms of reference that related to the establishment of a LNG business in Nigeria, with the intention of resolving all contractual, commercial, technical and financial issues. After all the knotty issues concerning shareholders and investors were resolved, NLNG was incorporated in 1989. Production from its first operational train, Train 2, started in 1999 and Company’s first cargo left the shores of Bonny Island Rivers State, on the 9th of October, 1999 to Montoir, France.
NLNG – The Present
Today, NLNG has a total production capacity of 22 Million Tons Per Annum (mtpa) of LNG and 5mtpa of Natural Gas Liquids (NGLs) from its six-train plant complex.
The company has 20 long-term Sale and Purchase Agreements (SPAs) with 9 buyers.
NLNG began its intervention in the supply of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, to the domestic market in 2007 under the NLNG DLPG Scheme. The supply has stimulated growth in the industry, guaranteeing LPG supply, availability and affordability. This has also inspired the development of different parts of the DLPG value chain.
In 2019, NLNG shareholders took the Final Investment Decision (FID) on its 7th train and awarded the Engineering, Procurement and Construction (EPC) contracts for the plant expansion in 2020. The long-awaited expansion will increase production capacity by 35 per cent from 22mtpa to 30mtpa and enhance NLNG’s competitiveness in the global market.
The company has a proven track record of resilient performance (Operational Excellence, HSE, etc.) and unswerving profitability.
