Speaking at a ceremony in London to commemorate the repayment of a $5.45 billion Shareholder loan for its existing trains, the Managing Director and Chief Executive Officer of NLNG, Mr. Tony Attah, said that the funds being sought would cover the company’s expansion programme (construction of Train 7) and investment in the upstream gas sector in Nigeria that would ensure the sustainability of feed gas supply to its existing trains (Trains 1 to 6) and the new Train 7.
Attah noted that the NLNG is a mid-stream company that has monetised over 5.96 Trillion cubic feet (Tcf) of Associated Gas (AG), which would have otherwise been flared, thus helping to build a better Nigeria.
He explained that the company is not just looking to fund the expansion of the plant, but also to ensure sustainability of feedgas supply to the plant, for the continued success of the NLNG.
“All of these align with our belief that gas is a catalyst for industrial and economic transformation which will position Nigeria to become a leading gas producing country.
“The success story of the NLNG project is due to some key critical success factors, which include the shareholding and governance structure of the company that has made the company an independent Incorporated Joint Venture, guaranteeing an independent Board of Directors, effective decision making as well as funding for its projects which is critical for the sustenance of this successful project.
“Over decades, the company has raised funds for its projects, from a combination of Shareholders loans, internally generated revenue and third party loans. In all of these financial ventures, NLNG demonstrated financial discipline and character by abiding by loan covenants, terms and conditions without a single breach or default, and we believe this positions the company as a Lenders delight,” local media reports quoted Attah as saying.
“Our financial credibility speaks for itself and we will be testing the financial market once again with our sustainability and expansion projects estimated at US$ 7 billion.
He acknowledged that raising $7 billion is no small feat anywhere in the world, and therefore, seek support from the local and international financial institutions, the company’s shareholders and the Nigerian government “in bringing to reality the dreams of our founding fathers and achieving our vision of helping to build a better Nigeria”.
NLNG is a private limited liability company owned by the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International (10.4%).