Professional Documents
Culture Documents
The Company 7
Management Prole 12
The Plant 23
Gas Supply 38
Commercial 40
Shipping 44
Financing 57
Nigerian Content 61
The Environment 68
The company has two whollyowned subsidiaries: Bonny Gas The company was set up in 2008 to realise NLNG's vision of
Transport (BGT) Limited and NLNG Ship Management Limited resourcing, developing and managing shipboard personnel for
(NSML). BGT vessels.
We will provide to our shareholders a good return on their The shareholders appoint representatives to the Board of
investment. Nigeria LNG Limited. To execute the decisions of the Board is
a Senior Management Team (SMT). Supporting the SMT are
We will provide an exciting and fullling place to work and the Extended Management Team (EMT) and over 1,000
the opportunity for staff to develop their potential. quality staff.
Finally, we will execute and operate our business in Nigeria Shared Values
with an international outlook and mindset. Integrity
Teamwork
Our Mission Excellence
To market, produce and deliver liqueed natural gas and Caring
natural gas liquids to buyers safely, reliably and protably,
GENERAL MANAGER, PRODUCTION Between 2008 and 2010, he was back in Shell Upstream
Chima Isilebo is the General Manager, Production (PD), International as Vice President (Gas & Power) with
responsible for the plant complex in Bonny, Rivers State, as responsibility for South-East Asia (based in Singapore) where
well as Gas Supply/Pipelines and Support Infrastructure. he served as a Director on the boards of a number of Shell
Joint Venture companies in Brunei and Malaysia, including
Chima is a seasoned professional with more than 30 years of Brunei Shell Petroleum, Brunei LNG, Brunei Shell Tankers,
oil and gas industry experience in both Upstream and Brunei Gas Carriers and Shell MDS in Malaysia.
Midstream businesses, covering diverse disciplines including
Engineering and Project Management, HSSE, Business He returned to NLNG again in 2011 as the rst Nigerian
Planning and Economics, Venture Governance, LNG General Manager, Production.
Patrick Olinma Patrick, who has a strong track record in closing complex
deals, in 2005 led the 2.5 mtpa LNG Sales and Purchase
GENERAL MANAGER, COMMERCIAL Agreement negotiations with Suez LNG for the Yemen LNG
Patrick Olinma holds a bachelor and a master of law degrees Project and was responsible for the 3.25 mtpa LNG Sales and
from the Universities of Benin and Lagos respectively, as well Purchase Agreements with BG Gas Marketing Limited and
as a Master of Business Administration (MBA) from the Grand Occidental Energy Marketing Inc. for NLNG's Train 7 Plus
Ecole ESCP, Paris, France. And has attended advanced project. In his time at Nigeria LNG, he has successfully led
management and strategy executive education programmes at several international LNG Sales Price Reviews including three
IMD, Switzerland; INSEAD, France; Oxford University and international arbitrations. Before he came to Nigeria LNG
Harvard Business School. Limited as General Manager, Commercial in 2007, Patrick was
Deputy General Manager (NLNG Commercial) in Total
He began his career as a legal counsel in Abudu, Akinyemi & Exploration & Production Nigeria. He speaks regularly at
Ogunde in 1990 and was managing counsel when he left the international conferences.
law rm to join French oil giant Total Nigeria in 1996 where,
amongst other roles, he had oversight function of technical
services contract and advised operations teams on host
communities, conict resolution, as well as relations with state
and local government agencies.
Since joining the oil and gas industry 16 years ago as pioneer
Community Relations and Development Manager for Nigeria
LNG Limited, Kudo has served in other managerial positions
including Public Affairs Manager, and Government Relations
Kudo Eresia-Eke Manager. He is a prolic writer with numerous publications
spanning poetry, short stories, inspirational and academic
GENERAL MANAGER, EXTERNAL RELATIONS essays.
Kudo Eresia-Eke, a seasoned and accomplished
communicator and administrator with rich experience in the He belongs to several professional organizations including the
media, academia, government and the oil and gas industry, International Association of Business Communicators. He is
holds a Ph.D in Political Theory from the University of Port also on the board of several academic and development
Harcourt, and a bachelor's degree in Mass Communication agencies including the Rivers State Sustainable Development
from the University of Lagos. He started his communication Agency, RSSDA.
career straight from secondary school, joining the Nigerian
Television Authority as a presenter and newscaster. He later
served at the Daily Times, the Guardian Newspaper, Rivers
State Television, Radio Nigeria, Radio Rivers, and Sunray
Group of Newspapers from where he resigned in defence of
professional principles and ethics. For years, he was also a
columnist for the Vanguard Newspaper.
CONTRIBUTIONS TO THE NLNG has also over the years paid dividends of almost
USD30 billion, out of which 49 per cent went to the Federal
NIGERIAN ECONOMY Government of Nigeria courtesy of its shareholding in the
company, again via Nigerian National Petroleum Corporation,
With the incorporation of Nigeria LNG Limited (NLNG) on NNPC.
17th May 1989, the LNG industry in Nigeria was born. It is
As a good corporate citizen, NLNG also contributes to
successfully harnessing associated gas volumes which would
national wealth and economic wellbeing of states in which it
otherwise have been ared. It is now also considered one of
operates, by paying all applicable taxes and tariffs. In 2014,
the most important economic projects in Nigeria. NLNG has
the company's corporate income tax amounted to about N220
already generated signicant revenues for the nation.
billion, thus making NLNG by far the highest tax payer in
Environmental Hazard Reduction Nigeria and Sub-Sahara Africa.
NLNG has converted about 133 Bcm (billion standard cubic
metres) or 4.68 Tcf (trillion cubic feet) of Associated Gas (AG) Foreign Direct Investment (FDI)
With its plant construction, the company generated
to exports as LNG and Natural Gas Liquids (NGLs), thus
considerable Foreign Direct Investment (FDI) for the country.
helping to reduce gas aring by upstream companies. Flares
The project today has assets (i.e. property, plant and
are only permitted in order to eliminate waste gas which
equipment) worth over USD14 billion nanced mainly by
cannot be converted to any further use. Flares also act as
NLNGs shareholders, with 51 per cent stake by International
safety systems for non-waste gas and are released via pressure
Oil Companies and 49 per cent belonging to the country
relief valves, when required, to ease the strain on equipment.
through the Nigerian National Petroleum Corporation, NNPC.
Monetization of Gas
NLNG utilizes gas that would otherwise be ared, thus making Gross Domestic Product (GDP)
The company, since 2008, contributed about four per cent of
signicant contributions to the nation's income while helping to
Nigeria's annual Gross Domestic Product (GDP) and with
protect the environment. Payment to Joint Venture (JV) feedgas
current rebasing of the GDP, NLNG's contribution to the GDP
suppliers from inception till date is almost USD21 billion; 55-
is put at about one per cent.
60 per cent of this amount goes to the Federal Government of
Those 600 Nigerians, with enhanced skills in welding, hull The Nigerian Content commitment in the project, which is
assembly, pipe tting, electrical, mechanical, painting and ship dened in a Memorandum of Agreement between NLNG/BGT
design will join the country's workforce, providing a support base and the shipyards (Hyundai Heavy Industries and Samsung
for technology transfer and industrialization. Heavy Industries) includes major initiatives such as the training
and development of Nigerians (both in Nigeria and Korea) in
Thirty-ve of the Nigerian trainees are currently in Korea for various aspects of ship design and construction, the supply of
participation in the ship construction and six Nigerians are materials such as paints, cables, anodes and furniture by
already working as ship managers (two Production Managers, Nigerian suppliers for the construction of the vessels, and
two QA/QC Managers and two HSE Managers) in the ship feasibility study on the establishment of the rst LNG ship dry-
construction at the shipyards in Korea. docking and ship repair yard in Nigeria.
Local Content Development Consequently, Berger Paints and Paints and Coatings MN have
NLNG supports the development of community and Nigerian produced and exported over 350,000 litres of paints; Nexans
contractors to enable them achieve standards of excellence. Kabelmetal has shipped over 130,000 metres of low voltage
(LV) cables and METEC West Africa has exported over 9000
Nigeria LNG Limited currently provides uninterrupted power to The intervention, which is in line with company's vision of
the inhabitants and businesses on Bonny Island through a rural helping to build a better Nigeria, has signicantly contributed
electrication project managed by the Bonny Utility Company to the stimulation and development of the domestic LPG market
(BUC). BUC is an initiative of NLNG-led Joint Industry in Nigeria and has effectively brought down the price of
Companies (JIC) which also includes water supply to the cooking gas from over N7,000 in 2007 to less than N3,500
Island. per 12.5kg cylinder today.
BUC has provided Bonny communities over 98 percent NLNG is committed to delivering 250,000 tonnes of LPG into
uninterrupted power supply since its inception, with per capita the Nigerian market annually and has signed Sales and
electricity consumption increasing from under 250 kWh per Purchase Agreements (SPAs) with fteen off-takers (all Nigerian
year in 2002 to over 960 kWh per year in 2014. Currently, companies) for the lifting of LPG for the domestic market.
BUC serves 11,700 households, essentially covering the entire
island via its distribution network. Nigerianisation
NLNG and its shareholders agreed on a Nigerianisation
The benets have been tremendous. Public services perform scheme on September 1, 1997. This was revisited and updated
better, businesses ourish because machinery and computers in 2004. The objective of the scheme which was to Nigeranise
can be utilised during the entire day, and residential users the company's workforce was achieved in 2012. It started by
experience higher comfort levels. The ourishing businesses, in recruiting Higher National Diploma graduates and training
turn, generate jobs for the indigenes. them as technicians and operators. This is a deliberate policy
For more information, see Community Relations and Development beginning to enable the relatively young minds imbibe the skills, work
from page 77. culture, discipline and professionalism that the business
requires. NLNG also instituted a staff training and
Domestic LPG Supply development drive for different cadres of technical staff to help
NLNG commenced the supply of Liqueed Petroleum Gas them acquire the requisite skills and competence for
(LPG) otherwise known as cooking gas to the domestic market management, supervisory and operational positions in the
LNG Contracts
NLNG currently manages 16 long term LNG Sales Purchase
Agreements (SPAs) executed with 11 buyers on a Delivered Ex-
Ship (DES) basis. These buyers include Enel, Gas Natural,
Botas, GDF Suez, GALP Gas Natural, BG LNG, Endesa, ENI,
Iberdrola, Shell International Trading Middle East Ltd and Total
Gas and Power Ltd.
The third party loans comprised of four Export Credit Agency Trains 1 & 2 (Base Project)
(ECA) guaranteed international commercial bank loans In 1990, the company raised a third party loan of USD132
totalling USD620 million, an uncovered international bank million through Citibank to buy four ships for the Base Project.
NLNG has a sound Health, Safety and Environment (HSE) An important element of the EIA process is to identify and
policy anchored on the need to take proper care of its assets, mitigate potential adverse impacts of NLNG's operations. For
the health and safety of its employees and stakeholders, and to NLNG's existing projects, a number of potential impacts
give proper regard to the sustainable management of the (positive and negative) were identied and mitigation
environment. measures taken for the adverse impacts.
In line with this, NLNG plans its work to: As a key stakeholder on issues that concern the environment,
Prevent injuries and ill-health to workers and surrounding FME regularly carries out quarterly impact mitigation
communities; monitoring and annual compliance monitoring exercises of
Prevent damage to assets and minimise any negative NLNG Projects.
impact on the environment;
Avoid or eliminate future liabilities; In addition, NLNG conducts regular monitoring of its own HSE
Meet requirements for demonstrable due diligence. performance, in pursuance of continuous improvement and to
foster a positive HSE culture within the organisation, NLNG
Nigeria LNG Limited ensures continuous compliance with conducts regular monitoring of its own HSE performance.
applicable legislations as stipulated by the various regulatory
bodies (Federal Ministry of Environment (FME), Department of A summary of NLNG HSE statistics from 2007 to
Petroleum Resources (DPR), Rivers State Ministry of Environment 2014 is as shown in the chart below:
(RSME), etc) that have issued permits for her various operations
by carrying out regular reviews and evaluation of all existing
and proposed environmental laws and regulations that impact
or have potential impact on NLNG Business.
Environment Premises.
Non-Hazardous Waste
Solid Waste Management The incineration of combustible waste is carried out within
Nigeria LNG's waste management strategy complies with the NLNG's facility as the fragile nature of Bonny Island does not
concepts of 'waste management hierarchy' and 'duty of care' allow for the creation of a landll site. Consequently, non-
for both on-site and off-site waste treatment and disposal hazardous solid wastes are temporarily stored on the plant site
activities. The principle adopted for solid waste is the 'Cradle before being transported to treatment and/or disposal facilities
Hazardous Waste
NLNG is committed to its policy of no harm to people and the
environment and the promotion of sustainable development.
The company therefore ensures the proper management of its
hazardous waste using the best practical environmental options
after approvals from the federal and state ministries of
environment.
In 2005, there was no winner for the science prize whilst joint
The prizes are administered, on behalf of Nigeria LNG Limited,
winners emerged for the literature prize which focused on
by the Nigerian Academy of Science and the Advisory Board
Poetry. Ezenwa Ohaeto and Gabriel Okara were rewarded for
for Literature made up of members of Nigerian Academy of
their books Chants of a Minstrel and The Dreamer: His Vision
Letters (NAL) and the Association of Nigerian Authors (ANA).
respectively. The third book on the nal shortlist of three,
Winners are announced in October, commemorating the rst