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NLNG Exports 4,000th LNG Cargo

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NLNG
  • NLNG Exports 4,000th LNG Cargo, Plans Expansion

The nation’s biggest gas exporter, Nigeria LNG Limited, has announced the exportation of the 4,000th cargo of Liquefied Natural Gas from its Bonny Island Terminal in Rivers State.

The NLNG, in a statement on Monday, said the cargo was exported to Mamara LNG Terminal in Turkey, which also received the company’s 3,000th cargo three years ago.

It said the cargo, which was shipped a board one of its chartered vessels, LNG Sokoto, was sold to Botas Petroleum Pipeline Corporation, and was estimated to arrive its destination by May 14.

A statement issued by the General Manager, External Relations, NLNG, Dr. Kudo Eresia-Eke, noted that the NLNG exported its first cargo on October 9, 1999 to Montoir LNG Terminal, France, and had since grown to Africa’s largest single private sector industrial investment, safely and reliably supplying about seven per cent of the total world LNG demand.

It said the company planned to expand its production capacity at its six-train plant complex from 22 million tonnes per annum to some 30 mtpa.

According to the statement, the plans are expected to stimulate upstream gas development of the country’s vast gas resources and attract about $15bn of foreign direct investments in the upstream alone, as well as another $10bn in the construction of the trains.

The Managing Director and Chief Executive Officer, NLNG, Mr. Tony Attah, was quoted as saying, “I am excited about this milestone, which would not have been possible without the shared vision within our company of helping to build a better Nigeria; our core values of integrity, teamwork, respect, excellence and caring; the commitment of our staff; and the cooperation from the government and shareholders as well as other stakeholders, including our loyal customers.

“This milestone is coming at a crucial time. It symbolises many things. It signifies that the NLNG remains a successful company. At 4,000th cargo, we have shown the world that the NLNG is a world-class company, safely and reliably delivering clean energy to its customers. Secondly, and most importantly for Nigeria, it shows that it is time for gas; it is time to encourage this success story.”

He said it was time to unleash the country’s gas potential through catalysts like trains 7 and 8 to spur industrial and economic transformation.

Attah described the NLNG as a success that “we need to sustain as an inspiration to the country,” adding that it had generated $90bn in revenues as well as paid $5.5bn in taxes.

He added, “The company has generated $13bn for the Federal Government through feed gas purchases and $15bn in dividends. While monetising the country’s gas resources, the company has contributed to the reduction in gas flaring from about 65 per cent before it commenced operations to less than 20 per cent today.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Once Again The National Grid Collapsed

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power project

Nigeria’s electricity transmission system, also known as the National grid, has suffered another system collapse, plunging Lagos, the country’s commercial capital, Kano and other major cities into a blackout.

The collapse, which occurred about 11.00 am on Tuesday, was confirmed by two of the country’s electricity distribution companies in separate messages to their customers.

“We regret to inform you that the power outage being experienced across our franchise – Kaduna, Sokoto, Kebbi and Zamfara states – is as a result of the collapse of the national grid,” Kaduna Electric said on Twitter.

Eko Electricity Distribution Company Plc, in a text message to its customers, said: “Dear customer, there is a partial system collapse on the national grid. Our TCN partners are working to restore supply immediately. Please bear with us.”

The grid, which is being managed by the government-owned Transmission Company of Nigeria, has continued to suffer system collapse over the years amid a lack of spinning reserve that is meant to forestall such occurrences.

Spinning reserve is the generation capacity that is online but unloaded and that can respond within 10 minutes to compensate for generation or transmission outages.

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Economy

FG Consider Diversification To Generate Revenue

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Naira

As revenue from oil nosedives following incessant global price fluctuations, the Federal Government is now channeling efforts to the development of minerals in the mines and steel industry to shore up foreign exchange earnings.

Officials of the Federal Ministry of Mines and Steel Development said on Wednesday that while there had been concerted efforts to develop various minerals in the sector, much emphasis had been placed recently on the development of bitumen, barite and gold.

They told our correspondent in Abuja that the government through the mines and steel ministry was striving to diversify the Nigerian economy away from oil as the major foreign exchange earner for Nigeria.

They also confirmed that large quantities of gold had been discovered in various locations in Zamfara and Osun states.

Asked if the government had initiated programmes to explore the minerals and boost revenues now that the country’s income had plunged, the Special Assistant on Media to the Minister of Mines and Steel Development, Ayodeji Adeyemi, replied in the affirmative.

He said, “Indeed, the ministry has the mandate to generate revenue and diversify the economy through the mines sector.

“And bitumen is one of the key resources which the nation is abundantly endowed with, that has been identified for strategic development.”

To buttress his position, Adeyemi shared some recent presentations of the Minister of Mines and Steel Development, Olamilekan Adegbite, where the minister said his ministry was gathering data on some bitumen fields across the country to attract investors.

“A lot of people are interested in bitumen, which is coming from both local and foreign investors. However, we are still acquiring data in some of the fields,” the minister stated.

On barite, the minister said the mines and steel ministry was working on raising the quality of barite produced in Nigeria to an internationally acceptable standard, as certified by the American Petroleum Institute.

Adegbite said his ministry had contracted a consultant to help raise the standard in the local production of barite to ensure that oil industry players make use of barite produced in Nigeria as against importing the commodity from other countries.

He said, “Barite is a critical weighting material in drilling fluids used in the oil industry. We have a lot of barites but the issue is that it is not produced to API standards. However, we are putting a system in place which would be ready to launch in about July.

“We have got the millers who can produce barite to API standard. Hence we will be able to compete with foreigners and it would save Nigeria a lot of foreign exchange in import substitution.”

On the development of gold, officials at the ministry further stated that the commodity had been aggregated for the production of bullion bars and that this was the first time that such aggregation was happening in Nigeria.

They stated that the gold was sourced from artisanal miners, while the final refining to bullion was done in Turkey.

The sources stated that the ministry had registered two refineries that would now refine to LBMA standard when they come on stream. LBMA is the de facto standard, trusted around the world.

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Economy

Nigeria Sovereign Investment Authority Generates N160.06 Billion in 2020

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Naira Exchange Rates - Investors King

The Nigeria Sovereign Investment Authority (NSIA) generated revenue of N160.06 billion in 2020, according to the latest audited financial reports announced by the Managing Director of NSIA Mr. Uche Orji.

The NSIA income came from devaluation gain of N51 billion, and core income of N109 billion compared to N33.07 billion in 2019.

But Orji lamented: “Covid-19 adversely affected logistics around infrastructure projects, especially the toll road projects and the presidential fertiliser initiative.

Despite the pandemic, the Authority achieved 33 percent growth in Net Assets to N772.75 billion compared to the previous year’s performance of N579.54 billion.

Orji said the NSIA “received additional contribution of $250 million; and provided first stabilisation support to the Federal Government of $150 million withdrawn from Stabilisation Fund last year.”

The same year, the NSIA received $311 million from funds recovered from the late General Abacha from the United States Department of Justice and Island of Jersey for deployment towards the Presidential Infrastructure Development Fund (PIDF) projects of Abuja-Kaduna-Kano Highway, Lagos Ibadan Expressway and Second Niger Bridge.

In response to COVID-19, Orji said: “NSIA partnered the global Citizen, a not-for profit group, to form the Nigeria Solidarity Support Fund. Separately NSIA acquired and distributed oxygen concentrators to the 21-teaching hospital as part of corporate social responsibility; in addition to staffing support to the Presidential taskforce on COVID-19.”

In 2020, the NSIA “invested additional capital into NG Clearing, the first derivative clearing house in Nigeria to maintain NSIA’s shareholding at 16.5 per cent following the company’s rights issue of 2020″ Orji said.

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