President Muhammadu Buhari, has charged the International Oil Companies to execute more gas projects in the nation to harness the over 600 trillion cubic feet of proven gas reserves in the country.
The President gave the charge yesterday, at the virtual groundbreaking ceremony of the Nigeria Liquefied Natural Gas (NLNG) Train 7 project in Bonny Island, Rivers State which is expected to attract about $10 billion investments.
The president during the virtual and physical ground-breaking ceremony at NLNG in Bonny Island of Rivers state, said, “NLNG has generated $114 billion in revenues over the years, paid $9bn in taxes; $18bn in dividends to the federal government and $15bn in feed gas purchase.
“These are commendable accomplishments by the company’s 100 percent Nigerian Management Team. With this level of performance, I can only hope that the company continues to grow, starting with this Train 7 project but also positioning Nigeria to thrive through the energy transition.”
The president explained that the Gas Initiative, which was recently launched, will transform Nigeria into a major player in the gas industry with gas playing a key role as revenue earner and feed for petrochemicals and fertiliser plants.
He therefore urged the firm to ensure that the Train 7 is delivered speedily to pave the way for the commencement of the Train 8 project.
The President stated, ”As we flag off the Train 7 project today, I look forward to the development and execution of more gas projects by the International Oil Companies (IOCs) and indigenous operators, and more Trains from Nigeria LNG to harness the over 600 trillion cubic feet of proven gas reserves we are endowed with.
He assured Nigerians and potential investors in the oil and gas sector that the Federal Government will continue to create the enabling environment in order to develop the sector and bring the full benefits of gas closer 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.
Minister of State for Petroleum Resources, Chief Timipre Sylva, who was on ground to perform the ground-breaking ceremony on behalf of President Buhari said the coming on stream of the NLNG has helped to cut down gas flaring from 65% to a mere 12 % in the last decade.
“One of the remarkable benefits is that the nation’s operational flare status has reduced drastically from 65% when Nigeria LNG came into operation to about 12% today”, he said.
Managing Director of NLNG, Tony Attah, said the project would stimulate inflow of more than $10 billion Foreign Direct Investment to Nigeria, create 12,000 direct and over 40,000 indirect jobs, stressing that the decision to begin the Train 7 project was to improve on domestic gas utilisation and investments in the sector in the country.
He said the project will expand the capacity by 35% from 22MTPA to 30MTPA.
“With 206TCF of proven gas reserves and a potential additional 600TCF, I believe that Train 7 will be an inspiration and a catalyst for Trains 8, 9, 10 and even to 15 in line with the recent declaration of “Decade of Gas” by Mr President.”