Thursday 22nd June, 2017
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NLNGs Act amendment endangers $25bn FDI

NLNGs Act amendment endangers $25bn FDI

Immediate casualties of the planned amendment to the Nigeria Liquefied Natural Gas (NLNG) Act includes the development of Trains 7 and 8, which have a $25 billion For­eign Direct Investment (FDI) inflow, the Managing Direc­tor/Chief Executive Officer, Dr. Tony Attah, has said.
Tied to it is no fewer than 18,000 direct and indirect jobs, as $10 billion out of the expect­ed $25 billion foreign inflow is primarily for the construction of the facility, while the expect­ed cutback in funding following the country’s breach of assur­ance of guarantees will hamper its development, he noted.
Attah, who spoke in Lagos on Wednesday during the un­veiling of “Facts and Figures on NLNG 2017” to newsmen, said the foregoing would equal­ly scupper the country’s target of 30 million tonnes per an­num (mtpa) of Liquefied Nat­ural Gas (LNG), up from the present 22mtpa from the exist­ing six trains.
Insisting that the compa­ny was being unjustifiably tar­geted in the amendment, which seeks three per cent of its an­nual budget as levy to the Ni­ger Delta Development Com­mission (NDDC), the NLNG Deputy Managing Director, Mr. Sadeeq Mai-Bornu, ar­gued that the stakeholders and upstream players already pay the same levy in their explora­tion activities.
Mai-Bornu wondered why the company should be targeted in the amendment while it buys gas from the upstream compa­nies just like others that are ex­empt from the same levy.
Meanwhile, to deepen the company’s participation in cooking gas (Liquefied Petro­leum Gas (LPG), Attah dis­closed that the company has set a target of 350,000mt for 2017, up from the present 250mt per annum, and 150,000 in 2007.

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