Despite oil fall, NLNG says gas remains key revenue source, forex to Nigeria

In spite of the negative impact of the falling price of crude oil on gas, gas will remain an important source of revenue, value chain, and foreign exchange earner for the country, the Nigeria LNG has said.

It also said as gas usage gains momentum in power generation, industrialisation and increasingly transportation, it is expected that the rising demand will be sustained with opportunities for NLNG producer to grow its portfolio and make more economic benefits for the country.

Babs Omotowa, managing director and chief executive of the Nigeria Liquefied Natural Gas (NLNG) Limited, expressed these views while presenting the company’s facts and figures for the fiscal year 2014.

He said gas would continue to play a major role in the energy mix of the world as there would continue to be increase in the demand for gas from the NLNG around the world.

Regardless of the challenges, gas will be an important part of the global energy mix for the foreseeable future and Nigeria’s overall outlook continues to be bright, he said.

He said Nigeria LNG as arrow head of the Federal Government’s efforts to reduce gas flares and combat its debilitating impact on environment, has succeeded in monetising the country’s gas resources.

According to him, gas export from the company generated $1.3 billion in corporate tax for the government, which was five percent of the country’s revenue for 2013, adding that this figure is expected to increase by the time the result for the fiscal year 2014 is released.

The Nigeria LNG has through its efficient operations and profitability shown the benefits the country stands to enjoy by investing in the development of Nigeria.

On growing the company to cope with the increasing world demand for gas, the NLNG boss said, “As part of the growth programme for the company, significant back end work is ongoing targeted at adding a seventh LNG train to our current six train structure which at a point in time was the fastest growing of such facility in the world. Beyond growing our production from 22 to 30 million tons per annum, train 7 will definitely increase our capacity to become a more global energy supplier as well as to deliver enhanced value to Nigeria and Nigerians”.

Commenting on the supply of liquefied petroleum gas (LPG) to the domestic market, he said the company has played an important role in ensuring that LPG produced at its plant is made available to the mass of Nigerians at affordable cost subsidised by the company.

“Our company is also working with other stakeholders in the gas value chain to build capacity to handle increased supply of the product so that more Nigerians can begin to use cooking gas”, he said.