Nigeria LNG
Encyclopedia
Nigeria LNG Limited is a liquefied natural gas
(LNG)-producing company and a liquefied natural gas plant
on Bonny Island
, Nigeria
.
's subsidiary KBR. Other participants of the consortium were Snamprogetti, Technip
and JGC Corporation
. The first train came into operation in 1999.
(NNPC) owns 49%, Shell Gas B.V.
owns 25.6%, Total LNG Nigeria Ltd
owns 15% and Eni International
owns 10.4%.
s) producing 22 million metric tonnes of LNG per year (mmtpa). This amounts to roughly 10% of the world's LNG consumption. Trains 1, 2 and 3 have production capacities of 3.2 mmtpa, whilst trains 4, 5 and 6 have capacities of 4.1 mmtpa each. The final investment decision on the train 7 has not yet been made.
with an ordinary equity holding from Nigeria LNG Limited and preferential equity holding from the sponsors, NLNG's shareholders. Another wholly owned subsidiary of Nigeria LNG Limited is Nigeria LNG Ship Manning Limited (NSML), which was set up in 2008 to give dedicated attention to providing, developing and managing high calibre personnel for NLNG’s maritime business.
.
for violation of the Foreign Corrupt Practices Act
. In addition, Eni and Snamprogetti will pay $125 million to settle a U.S. Securities and Exchange Commission case.
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....
(LNG)-producing company and a liquefied natural gas plant
LNG train
An LNG train is the term used to describe the liquefaction and purification facilities in a liquefied natural gas plant.In order to make it practical and commercially viable to transport natural gas from one country to another, its volume has to be greatly reduced...
on Bonny Island
Bonny Island
Bonny Island is situated at the southern edge of Rivers State in the Niger Delta of Nigeria near Port Harcourt. In the early 1990s the Federal Government of Nigeria, in collaboration with 3 international partners, Shell Gas BV., CLEAG Limited [ELF] and AGIP International BV. started the...
, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
.
History
Nigeria LNG Limited was incorporated as a limited liability company on 17 May 1989, to produce LNG and natural gas liquids (NGL) for export. The plant was built by TSKJ consortium, which was led by former HalliburtonHalliburton
Halliburton is the world's second largest oilfield services corporation with operations in more than 70 countries. It has hundreds of subsidiaries, affiliates, branches, brands and divisions worldwide and employs over 50,000 people....
's subsidiary KBR. Other participants of the consortium were Snamprogetti, Technip
Technip
Technip is a provider of project management, engineering, and construction services for the oil and gas industry, headquartered in Paris, France....
and JGC Corporation
JGC Corporation
JGC Corporation is a global engineering company headquartered in Yokohama, Japan. It is listed at the Tokyo Stock Exchange. The company was founded on 25 October 1928. In 1976, it changed its original name from Japan Gasoline Co. to JGC Corporation...
. The first train came into operation in 1999.
Shareholders
Nigeria LNG Limited is jointly owned in the following proportions: Nigerian National Petroleum CorporationNigerian National Petroleum Corporation
The Nigerian National Petroleum Corporation is the state oil corporation through which the federal government of Nigeria regulates and participates in the country's petroleum industry.-History:...
(NNPC) owns 49%, Shell Gas B.V.
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
owns 25.6%, Total LNG Nigeria Ltd
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...
owns 15% and Eni International
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
owns 10.4%.
Operations
Nigeria LNG Limited operates six liquefaction units (LNG trainLNG train
An LNG train is the term used to describe the liquefaction and purification facilities in a liquefied natural gas plant.In order to make it practical and commercially viable to transport natural gas from one country to another, its volume has to be greatly reduced...
s) producing 22 million metric tonnes of LNG per year (mmtpa). This amounts to roughly 10% of the world's LNG consumption. Trains 1, 2 and 3 have production capacities of 3.2 mmtpa, whilst trains 4, 5 and 6 have capacities of 4.1 mmtpa each. The final investment decision on the train 7 has not yet been made.
Subsidiaries
The company has a wholly–owned subsidiary set up in 1989, Bonny Gas Transport (BGT) Limited, which provides shipping services for NLNG. BGT was set up in BermudaBermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
with an ordinary equity holding from Nigeria LNG Limited and preferential equity holding from the sponsors, NLNG's shareholders. Another wholly owned subsidiary of Nigeria LNG Limited is Nigeria LNG Ship Manning Limited (NSML), which was set up in 2008 to give dedicated attention to providing, developing and managing high calibre personnel for NLNG’s maritime business.
Financing
The base project (Trains 1 and 2) which cost US$3.6 billion, was financed by NLNG's shareholders. The third train (expansion project), including additional storage, cost US$1.8 billion and was funded by shareholders as well as reinvested revenue from the base project. The NLNGPlus project (Trains 4 & 5) cost US$2.2 billion and was funded with a combination of internally generated revenue and third party loans amounting to US$1.06 billion. Train 6 (NLNGSix project) cost US$1.748 billion, financing was handled by shareholders. The total cost of building six LNG trains was US$9.348 billion.Sponsorship
Nigeria LNG Limited (in partnership with the Nigerian Academy of Science and the Nigerian Academy of Letters) sponsors The Nigeria Prize for Science and The Nigeria Prize for LiteratureNigeria Prizes for Science and Literature
The Nigeria Prize for Science and The Nigeria Prize for Literature are Nigerian science and literary awards presented annually since 2004. The award is sponsored by Nigeria LNG in partnership with the Nigerian Academy of Science and the Nigerian Academy of Letters...
.
Controversy
There are investigations concerning alleged bribes of $180 million paid by the TSKJ consortium of engineering companies to Nigerian government officials (not Nigeria LNG staff) in the period 1994–2004 to obtain contracts worth more than $6 billion to win the contract to build Nigeria LNG facilities. KBR pleaded guilty, in February 2009, to paying bribes to Nigerian government officials to secure four contracts to build and expand the Nigeria LNG terminal. In Italy, Milan's prosecutors office has begun legal proceedings to bar Eni and Saipem, owners of Snamprogetti, from doing business with NNPC because of these alleged bribes paid by the TSKJ consortium to Nigerian government officials. Snamprogetti will pay $240 million in fines to avoid prosecution by the United States Department of JusticeUnited States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
for violation of the Foreign Corrupt Practices Act
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.- Provisions and scope...
. In addition, Eni and Snamprogetti will pay $125 million to settle a U.S. Securities and Exchange Commission case.