[Nigeria] NCDMB, NLNG to deepen partnership on projects, LPG penetration
The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria Liquified Natural Gas Limited will set up a tactical team comprising nominees from both organizations to drive closer collaboration on projects, ensure compliance with Nigerian Content obligations and promote other strategic alliances for the good of the nation’s economy.
This decision was reached when the Managing Director of Nigeria LNG Ltd, Dr. Philip Mshelbila led his management team to pay a courtesy visit to the Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote at the Nigerian Content Tower, Yenagoa, Bayelsa State.
The Managing Director explained that the visit was conceived to introduce the company’s new management team to the NCDMB. He stated that “NLNG and NCDMB have a special partnership that is beyond operator and regulator relationship. We started this relationship when we signed a Service Level Agreement (SLA) a few years ago and it put in place standards by which we would work together and ensure compliance and guard against surprises.”
He said the current plan is to take the relationship further and beyond complying with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. He said the reason is because “NLNG has a vision not just to be a globally competitive NLNG business, but to help build a better Nigeria. To do that we have to work closely with the NCDMB and raise our partnership to a new level, and that includes human development, research, and other areas.”
Speaking on the ongoing Train 7 LNG project, Mshelbila recalled how NCDMB supported the Nigeria LNG in various ways to enable the takeoff of the project. He said: “the Final Investment Decision (FID) was taken successfully with the help of NCDMB and the project is now under construction, making good and safe progress. We are looking at potentially 5000 to 10,000 persons being employed on different phases of the project. We already have thousands working on the ground. It is employing various contractors across different areas. This is a true example of how local content should be.”
The Executive Secretary in his remarks commended Nigeria LNG for its impressive compliance with the provisions of the Nigerian Content Act, adding that the Board has continually fulfilled its obligations on the Service Level Agreement. He expressed delight with the progress being made with the execution of the LNG Train 7 project, noting that it had reached about 30 percent completion.
He also stated that the worth of the Train 7 project is about $5bn, which represents huge foreign direct investment (FDI) into the Nigerian economy. Other economic benefits include the creation of 10,000 direct jobs and about 40,000 indirect employment opportunities. He added: “There are also upstream projects that are currently being approved that will supply gas to Train 7. Those upstream projects will lead to additional $6m foreign direct investment into the country. This will create employment opportunities, touch the lives of families, raise the profile of the country as a major LNG LNG producer and increase our domestic LPG (cooking gas) production. Train 7 is already providing a lot of jobs for Nigerian contractors, fabricators, logistics companies and more. The benefits are enormous.”
He assured that the Board will continue to collaborate closely with the Nigeria LNG, especially to ensure deeper LPG (cooking gas) penetration into the Nigerian market, hinting that NCDMB had partnered with several investors towards improving the accessibility of LPG.
Wabote also encouraged Nigeria LNG to consider further investments, highlighting that Qatar already had 14 LNG trains. He said Nigeria needed to grow its LNG capacities, especially with the world’s clamour for energy transition and Federal Government’s declaration that gas is Nigeria’s transition fuel.