Force Majeure: NLNG Cautions Against Panic Buying, Hoarding Of Cooking Gas

 

The Nigeria Liquefied and Natural Gas (NLNG) Company has allayed fears of cooking gas scarcity and price hike following its declaration of force majeure due to the flooding ravaging the country which has disrupted supply.

The General Manager, External Relations and Sustainable Development at the NLNG, Andy Odeh, made this known on Channels Television’s Sunrise Daily programme on Monday.

“We don’t determine the price of gas as a company. However, I know the fears and concerns out there but I think it is important to reiterate that we are producing LPG (Liquefied Petroleum Gas) which is the cooking gas into the domestic market.

“Only last week, the only dedicated LPG vessel left the Bonny facility to deliver into Lagos. Will this affect the price of cooking gas? No it shouldn’t. I think to an extent the National Association of LPG Marketers has also gone out to assure the public that there is no need to panic buy, there is no need to stock or store cylinders in our homes because of fear or concern that there will be scarcity,” Odey said.

Force majeure, a common clause in contracts, essentially frees both parties from liability or obligation when a circumstance beyond the control of the parties like war, crime, epidemic or sudden legal changes prevents one or both parties from fulfilling their obligations under the contract.

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The notice by the NLNG last week had caused panic among the consumers of Liquefied Petroleum Gas also known as cooking gas who feared there could be scarcity of the vital commodity.

On when things are expected to return to normal, the NLNG boss acknowledged that weather is unpredictable but assured Nigerians that things will get better in the next few weeks.

“As you know this is all about flooding, I will say it is difficult to predict the weather.

“When water recedes and this we expect will happen by the upstream suppliers but again I think at this point safety of people who work on those sites and of course safety of assets in those facilities are paramount.

“In the coming weeks we will continue to monitor the situation. In terms of timeline, we are looking at next few weeks, confirmation is that as we speak the water is no more rising, so in the next two to three weeks we expect it to recede”, he assured.

NLNG Shuts Gas Operations Over Flooding

File photo of gas plant

 

The Nigeria Liquefied and Natural Gas (NLNG) Company has declared force majeure because the flooding ravaging the country which has disrupted supply, a spokesman for the company said on Monday.

“The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG,” spokesperson Andy Odeh said, according to Reuters.

Force majeure, a common clause in contracts, essentially frees both parties from liability or obligation when a circumstance beyond the control of the parties like war, crime, epidemic or sudden legal changes prevents one or both parties from fulfilling their obligations under the contract.

Odeh said NLNG was determining the extent of the disruption and would try to mitigate the impact of the force majeure.

Floods have hit parts of Nigeria in the last two months with the National Emergency Management Agency (NEMA) saying that about 2.5 million persons were affected and over 603 persons killed by the flooding caused by torrential rainfall of late.

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Houses, farmlands, bridges and critical infrastructure have been submerged in Lagos, Yobe, Borno, Taraba, Adamawa, Edo, Delta, Kogi, Niger, Plateau, Benue, Ebonyi, Anambra, Bauchi, Gombe, Kano, Jigawa, Zamfara, Kebbi, Sokoto, Imo, Abia States, and the Federal Capital Territory.

Romeo Oriogun Wins $100,000 Nigeria Prize For Literature

A file photo of Romeo Oriogun.
A file photo of Romeo Oriogun.

 

Romeo Oriogun has won the 2022 Nigeria Prize for Literature for his poetry collection, ‘Nomad’.

Oriogun beat two other finalists – Su’eddie Vershima Agema for Memory and the Call of Water and Saddiq Dzukogi for Your Crib, My Qibla – to the coveted prize.

The biennial prize is sponsored by the Nigeria Liquefied and Natural Gas (NLNG).

Since 2004, it has rotated among the genres of fiction, poetry, drama, and children’s literature.

This year was for poetry and it considered books published in the last four years.

Senate Orders NLNG To Pay Host Communities N18.4bn Compensation Within 60 Days

The Senate President, Ahmad Lawan, presides over the plenary in the upper chamber of the National Assembly on April 27, 2022.

 

The Senate on Tuesday directed the Nigeria Liqufied Natural Gas (NLNG) Limited to pay N18.4 billion compensation to 73 communities of Obiafu, Soku to Bonny in Rivers state for acquiring their land and loss of use of the affected land to pipeline Rights of Way through the communities.

According to the Senate’s directive, this payment is to be made within 60 days.

Following the consideration of a report by its Committee on Ethics, Priveleges And Public Petitions, the Senate resolved that the restitutions needed to be made.

Presenting the report, the Committee chairman, Senator Patrick Akinyelure (PDP Ondo Central), said following its incorporation, the NLNG acquired landed properties in Rivers state spanning over 210 kilometres for use as its pipelines Right of Way which ended at the export terminal of the NLNG in Finima, Bonny Local Government of the state.


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According to him, “that there were over 73 communities and over 200 families whose hitherto agrarian source of livelihood were negatively impacted upon by the said acquisition.

“That after the the recent intervention of the Senate and after being given one month instead of 7 days allowed by the Senate to provide evidence of payment to the Committee, the NLNG could only show evidence of payment to some individuals, families and communities.

“The total amount it paid for part of the 210 kilometres of land acquired for pipelines Rights of Way was N74,642,773.00 which is not significant when compared to the sum of N18.4 billion approximately demanded by the 73 communities and over 200 families, which has never been objected to by the NLNG up till now.

“That the payment made covered only 39 communities and 73 individuals and families; and that there was no Memorandum Of Understanding (MOU) signed between the communities and NLNG on future obligations in the name of Corporate Social Responsibility with the impacted communities.

“There was evidence that other oil companies such as Shell Petroleum Development Company, Totalfina, Elf Petroleum, Agip Oil Company paid compensation for the loss of use of land to their host communities.

“NLNG confessed that, the payments were made long ago and could not reasonably trace most of the payments documents but promised look for further evidence to show that it paid stakeholders concerned if given another one month to enable do so.”

In considering the NLNG’s request, the committee said the demand was unnecessary and unreasonable, having granted NLNG one month earlier instead of 7 days allowed by the Senate at plenary to conclude its report.

Nigeria’s Gas Resources Would Mean Nothing If Not Developed – Attah

MD NLNG, Tony Attah

 

The Managing Director of Nigeria LNG Limited (NLNG), Tony Attah has said the large deposit of gas resources in Nigeria would amount to nothing if the gas is not developed and utilised urgently to meet the nation’s energy needs.

Attah said this at the pre-summit conference of the 2021 Nigeria International Petroleum Summit (NIPS) organised by the Federal Ministry of Petroleum Resources and sponsored by NLNG and covered live by Channels Television on Monday.

He stated that it was necessary to act now on gas through deliberate policies such as the Decade of Gas, adding that the country must not continue to be gas-rich and energy-poor where our gas processing and LNG capacity do not match the volume of our gas reserves.

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Attah, however, emphasised that the time for Nigeria to become a top gas nation is now when gas is playing a pivotal role in bridging traditional energy sources and renewables.

“Our world is changing. We are set to add two billion more people by 2040 to become 9 billion people on earth. On the back of this and anticipated growth in human prosperity, energy demand is expected to grow by more than 30%. Essentially the world needs more energy; but needs it cleaner and cheaper to manage climate change and the 20C challenge through decarbonisation.

“Energy transition has begun, resulting in a massive change in the global energy mix while renewable sources are gaining prominence to replace coal and other forms of fossil fuels,” he said.

Gas is set to be the fastest-growing transition fuel of the future. This is a great opportunity for Nigeria. Nigeria is blessed with plenty gas reserves – 200TCF of proved reserve and an additional 600TCF scope to be proven by SEC rules.

“Proving the 600TCF will move us to number four in the world from the current 9th position which I believe should be a key objective for this decade of gas agenda. Essentially, Nigeria is a gas nation as we have more gas than oil on a BoE basis.

“Nigeria currently plays a significant role in the global energy sector, holding the position of the largest oil and gas producer in Africa and the sixth supplier of global LNG through the operations of NLNG. Our Train 7 project alone will attract about $10billion into the country with significant revenue generation for the government and our shareholders but also over 12,000 jobs opportunities for Nigerians.

“This is a decade of gas, another decade of sustained operations in NLNG, a decade of Train 7 and perhaps Trains 8,9 and 10; a decade of elimination of gas flaring, a decade of more Domestic LPG in households in Nigeria; and overall, a decade of fully gas-powered economy,” he said.

He added that “Gas is everything for Nigeria. We must use what we have to get what we want. Saudi Arabia and Dubai used oil to move their economies to become one of the best in the world, Qatar has used gas to transform from a fishing economy to becoming a global gas giant. Nigeria has both oil and gas. However, Nigeria has thus far ridden on the back of oil for over 50 years, but the time has come for Nigeria to fly on the wings of gas. At NLNG, we believe It is time for GAS.”

Attah urged the Federal Government and stakeholders in the energy industry to maximise the Decade of Gas by focussing on developing and legislating the right regulations, policies, and laws that will engender the right environment for the much-needed investment in all the streams of the sector.

He added that NLNG was ready to partner with the government in making the Decade of Gas a reality as the Company continues to actualise its vision as a global LNG company, helping to build a better Nigeria.

NLNG is owned by four Shareholders; namely, the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49%), Shell Gas B.V.  (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N. V. S.àr. l (10.4%).

NLNG Says It Averted Pirate Threat Incident

Nigeria LNG Limited is a liquefied natural gas-producing company and a liquefied natural gas plant on Bonny Island, Nigeria.
Nigeria LNG Limited is a liquefied natural gas-producing company and a liquefied natural gas plant on Bonny Island, Nigeria.

 

The Nigeria LNG Limited (NLNG) says one of its chartered vessels, LNG Lagos II, averted a pirate threat on Friday.

This was contained in a statement signed by its General Manager, External Relations and Sustainable Development, Eyono Fatayi-Williams.

“A Nigeria LNG Limited (NLNG) Chartered Vessel, LNG Lagos II, in the early hours of Friday, 18th December 2020, reported a pirate threat to vessel and crew en route the Company’s Bonny Terminal,” the statement said.

“All personnel are safe and there is no report of physical attack or damage to vessel. The threat was averted after evasive manoeuvre by the vessel’s Master.

“Company is currently monitoring the situation and relevant authorities have been duly notified.”

NLNG Donates Renal Centre To Rivers University Teaching Hospital

The Nigeria LNG Limited (NLNG) has donated a renal centre to the Rivers State University Teaching Hospital (RSUTH).

The donation of the centre, worth N381 million, is to support the hospital’s response to the COVID-19 pandemic and boost healthcare delivery in the state.

At the signing ceremony for the Memorandum of Agreement (MoA) with the management of the hospital on Wednesday, NLNG’s Managing Director/Chief Executive Officer, Engineer Tony Attah, said the company was committed to supporting healthcare delivery in Rivers, in line with its vision of “helping to build a better Nigeria”.

Attah, who was represented by General Manager, External Relations and Sustainable Development, Mrs Eyono Fatayi-Williams, added that the NLNG was investing in the Bonny Community Health Insurance Programme (BCHIP), to help improve access to quality healthcare services, and the Bonny Malaria Eradication Programme.

According to him, this aims to cut down malaria-related mortality among women and children under five and to make Bonny Island Nigeria’s first malaria-free zone.

The NLNG CEO stated that these interventions signified the company’s resolve to stand with the people of Rivers and to reciprocate their goodwill and support to the company over the years.

The donation comes on the heels of the NLNG’s COVID-19 donations in medical equipment and supplies worth over N476 million to five states – Lagos, Bayelsa, Akwa Ibom, Edo and Adamawa.

This forms part of the company’s contribution to the N11.4 billion Oil and Gas Industry Collaborative initiative, spearheaded by the Nigerian National Petroleum Corporation (NNPC) to fight the COVID-19 pandemic.

NLNG had also made donations of medical supplies and materials worth about N1billion to the Rivers State Government, Bonny Local Government, and residents of Bonny Island.

Other interventions by the company in Rivers include training of medical personnel on Bonny Island – the base of its operations, donation of food items as palliatives to its host communities, and the provision of a 24-bed treatment centre at the Bonny Zonal Hospital for residents of Bonny community.

NLNG Denies Withdrawal Of $1.05bn From Dividend Account

 

The Nigeria Liquefied Natural Gas Limited (NLNG) has condemned the reports that it illegally withdrew the sum of $1.05 billion from its dividend account with the Nigerian National Petroleum Corporation (NNPC).

NLNG’s General Manager of External Relations and Sustainable Development, Eyono Fatayi-Williams, denied the claims in a statement on Thursday in Port Harcourt, the Rivers State capital.

She also faulted the allegations that the NLNG Managing Director/CEO, Tony Attah, and the NNPC Group Managing Director (GMD), Mele Kyari, were signatories to an account and have been misappropriating monies belonging to the company without approval.

Fatayi-Williams, however, clarified that as a private limited liability company, the NLNG duly pays dividends to its shareholders.

She added that the company has continued to operate in full compliance with regulations and the laws of the country.

The NLNG general manager dismissed the allegations and urged Nigerians to ignore them, stressing that they were baseless and untrue.

Read the full statement below:

16 July 2020

Port-Harcourt

The attention of Nigeria LNG Limited (NLNG) has been drawn to news reports on the investigation by the House of Representatives into alleged illegal withdrawal of US$1.05billion from NNPC’s (NLNG) dividend account and allegations that our Managing Director/CEO Tony Attah and the GMD, NNPC, Mele Kyari are signatories to an account and have been moving and “squandering” monies belonging to the company without approval.

For the purpose of clarity, NLNG wishes to state that the company, as a private limited liability company, duly pays dividends to its shareholders and continues to conduct its business in full compliance with regulations and the laws of the Federal Republic of Nigeria.

NLNG strictly follows extant protocols in the payment of dividends as value generated from the business and ensures that the process concerning payment of dividends to its shareholders is transparent and in full compliance with the laws of the Federal Republic of Nigeria.

Expectedly, NLNG’s involvement in the process ends with the payment of such dividend.

The governance and controls around the Company’s finances also make the allegations against the Managing Director and the GMD an impossible scenario and therefore members of the public are advised to disregard the allegations as it is totally baseless and simply untrue.

NLNG also wishes to emphasize that it continues to bring value to both its shareholders and the country, utilising best practices in the industry to monetise gas resources and contribute to the socio-economic wellbeing of the country in line with its vision of helping to build a better Nigeria.

Eyono Fatayi-Williams

General Manager, External Relations and Sustainable Development

Reps To Investigate $1bn Illegal NLNG Withdrawal

A file photo of lawmakers during plenary at the House of Representatives chamber in Abuja .

 

The House of Representatives has mandated its committee on public account to investigate alleged illegal withdrawals from the dividends accounts of the Nigerian Liquefied Natural Gas (NLNG).

The matter was raised as a matter of urgent national importance by the minority leader of the House, who alleged that the withdrawals were made by the Nigerian National Petroleum Corporation (NNPC).

Details later.

NLNG Signs EPC Contracts With SCD JV Consortium

 

The Nigeria LNG, on Wednesday, signed the engineering, procurement, and construction (EPC) contract for Train 7 with the SCD Joint Venture Consortium with Saipem, Chiyoda, and Daewoo, as it plans a major expansion in the country’s gas industry.

The long-awaited Train 7 project is expected to boost Nigeria’s liquefied natural gas (LNG) output by 35% from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

According to the Group Managing Director of the Nigerian National Petroleum Corporation and a Director on the NLNG Board, Mr. Mele Kyari, achieving the Train 7 vision is crucial to securing the much-needed public confidence of all critical stakeholders.

“Nigeria LNG’s successes since it started operation in 1999 continue to prove that the Company operates a unique business model that is profitable to all its stakeholders. NNPC and the other Shareholders — Shell, Total, and Eni — are proud to be a part of this exceptional Nigerian brand that stands out in the global market.”

“It is for this reason that our President, Muhammadu Buhari instructed through the Honourable Minister of State for Petroleum Resources that NNPC as a Shareholder must do everything possible to support all the other Shareholders and NLNG’s Management to secure the much-needed public confidence from all critical stakeholders, especially the critical agencies of the Federal Government of Nigeria and international investors, to pursue the Company’s ambition of adding a 7th train to its existing production capacity. I encourage every stakeholder involved in the execution of the Train 7 Project, especially the SCD JV Consortium, NLNG Train 7 Project Team, and the Company’s Management to leave no stone unturned in making this project a reality,” he added.

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Meanwhile, the Managing Director and Chief Executive Officer of NLNG said in a statement that the project, upon completion, will support the Federal Government’s drive to generate more revenue from Nigeria’s gas reserves of about 200 Trillion Cubic Feet (Tcf).

“With the award of the EPC Contracts to our preferred bidders (SCD JV), we are guaranteeing that our country remains significantly on the global list of LNG suppliers. This singular act clearly demonstrates our Shareholders’ determination and resolve to sustain the economic dividends that NLNG’s monetization of our vast natural gas reserves offers our great country Nigeria.”

He expressed confidence in SCD JV Consortium’s proven competence, adding that the demonstration of an understanding of NLNG’s business philosophy by the Consortium will positively influence the execution of the Project and ensure zero harm to people, environment and host communities.

The construction period is expected to last approximately five years with the first LNG rundown expected in 2025.

FG Nominates NLNG To Make Finima Nature Park A Ramsar Site

The Director of Forestry at the Federal Ministry of Environment, Mr Tiamiyu Sikiru, presents the Letter of Nomination to NLNG’s General Manager for External Relations and Sustainability, Mrs Eyono Fatayi-Williams, at the company’s plant site on Bonny Island in Rivers State.

 

 

The Federal Government has nominated the Nigeria LNG Limited (NLNG) to make Finima Nature Park, a conservation park managed by the company, a Ramsar Site of International Importance.

NLNG’s Manager of Corporate Communications and Public Affairs, Sophia Horsfall, disclosed this in a statement.

The company, according to the statement, received the Letter of Nomination from the Federal Ministry of Environment on Monday in Rivers State.

The letter was presented to the company by the Minister of State for Environment, Sharon Ikeazor, who was represented by the Director of Forestry, Mr Tiamiyu Sikiru.

Mr Sikiru had visited NLNG’s Plant site and Finima Nature Park on Bonny Island in the company of some officials of the ministry to celebrate the 2020 World Wetlands Day.

While receiving the minister at the NLNG Plant, the NLNG General Manager (External Relations and Sustainability), Mrs Eyono Fatayi-Williams, said the company remains committed to ensuring a sustainable environment that would cater for the younger population and those unborn.

According to her, NLNG fully understands the importance of wetlands as a means to reduce the carbon footprint of the oil and gas industry’s activities in Bonny.

“The philosophy underpinning the Nature Park, which acts as a carbon sink through the CO2 sequestration abilities of the vegetation, also aligns with our contribution to the reduction of gas flaring in the country through our commercialisation of natural gas which would otherwise have been flared,” Fatayi-Williams said.

She, therefore, gave the assurance of NLNG’s commitment to protecting the park and boosting activities to encourage eco-tourism which would impact positively on socio-economic life in Bonny.

The general manager also stated that NLNG places significance on the preservation of plant and animal species found in the wetlands of the park.

During the presentation of the Letter of Nomination, the minister said, “I have endorsed the instrument for designation of Finima Nature Park as a Ramsar Site of International Importance. I want to thank NLNG for establishing Finima Nature Park.

“The park shall be known globally as ‘Finima Nature Park’ and will increase the number of Nigeria’s Ramsar Sites of International Importance to 12.”

Other guests at the presentation include the Chairman of NCF Council, Chief Ede Dafinone; NCF Director-General, Dr Muhtari Aminu-Kano; a member of NCF Council and a director in the NLNG Board, Chief (Mrs) Cordelia Agboti, among other NCF officials.

The Letter of Nomination is NLNG’s last requirement for the attainment of Ramsar Site status, having met all the other conditions, including being a haven for migratory birds and a Wetland Education Centre.

A Ramsar Site is a wetland designated to be of international importance under the Ramsar Convention which is an intergovernmental environmental treaty established by UNESCO in 1971.

The Finima Nature Park is managed on behalf of the company by the Nigerian Conservation Foundation (NCF) and was established in 1999 as part of NLNG’s response to global environmental concerns and the need for a more sustainable environment.

On completion of the process, the park would be listed as one of the 2,300 sites in the world.

The park is a 1,000-hectare land of freshwater swamp forest lying along the nation’s southern coastal area on Bonny Island.

It was designated an internationally acclaimed centre for Wetland Education and became a member of Wetlands Link International in 2019.

This made it one of the 350 Wetland Centres globally and the second in Nigeria.

NLNG is owned by four shareholders – the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (NNPC) – 49 per cent, Shell Gas B.V. – 25.6 per cent, Total Gaz Electricite Holdings France – 15 per cent, and Eni International N.A. N. V. S.àr. l – 10.4 per cent.

[UPDATE] Statutory Levies: Appeal Court Dismisses NLNG Suit Challenging NIMASA’s Powers

 

The Court of Appeal sitting in Lagos, today has dismissed a judgment of the Federal High Court, which declared as illegal, levies imposed on Nigeria Liquefied Natural Gas (NLNG) by Nigerian Maritime Administration and Safety Agency (NIMASA).

The NLNG in 2013, had approached the Federal High Court, seeking a judicial determination of (among other things), the legality or otherwise of the levies sought to be imposed on it by NIMASA, on behalf of the Federal Government and the consequent blockade of the Bonny Channel by NIMASA and its agents as a result of the dispute.

In Oct 2013, the Federal High Court, Lagos, presided over by Justice Muhammed Idris, (who has now been elevated to Court of Appeal) held that NLNG, was not liable to pay three percent gross freight on its international inbound and outbound cargo, Sea Protection Levy, two per cent cabotage surcharge on all activities carried out for and on its behalf, as well as other sundry claims, as insisted by NIMASA.

Justice Idris also held that NLNG was not liable to make the said payments to NIMASA and that all payments already made by NLNG to NIMASA should be refunded to NLNG forthwith.

The judge further held that NIMASA was wrong in blockading the Bonny Channel for the purpose of enforcing the payments against NLNG.

Dissatisfied with Justice Idris’ decisions, NIMASA filed an appeal before the Appeal Court in Oct 2017, challenging the judgment on the ground of fair hearing among other grounds.

In a unanimous judgment delivered today, Friday the three-man panel of the Court of Appeal led by Justice Garuba Lawal held that the Federal High Court was wrong.

They, therefore, dismissed the judgment of the lower court for lack of fair hearing

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The Appeal Court also ordered that the matter be taken back to the Federal High Court and be reassigned to another judge for retrial.

The judgment which was read by Justice Joseph Ikyegh, on behalf of the panel members held: “The appeal is allowed, and the judgment delivered by the lower court in October 2017 is hereby set aside”.

“The case is hereby ordered to be sent back to the administrative judge of the Lagos Division of the lower court to be assigned to a judge for expeditious determination on its merit.

‘Parties are to bear the administrative cost of the appeal.”

In its suit before the court of appeal, NIMASA claimed that NLNG is liable to pay three per cent gross freight on its international in-bound and out-bound cargo as sea protection levy.

It also claims NLNG is to pay two per cent cabotage surcharge on all activities carried out for and on its behalf as well as other sundry claims.

All of these claims were, however, disputed by the NLNG which claimed it lost about 475 million dollars while NIMASA blocked Bonny Channel.

NIMASA says that with today’s judgment, the status quo is to remain and NIMASA will continue to collect statutory levies from NLNG on behalf of FG.