NLNG rallies investors for dockyard to boost Nigerian economy

Babs Omotowa, Nigeria LNG (NLNG) Managing Director and Chief Executive Officer, says the company is rallying investors to build a dockyard because it has a huge potential to boost the economy.

 

 

Omotowa (left) presenting the report of the feasibility study to Maikanti Baru Group General Manager, LNG Investment, NNPC (middle); and Ernest Nwapa, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB).

“Our LNG vessels and very large crude carriers (VLCC) of other companies in the oil and gas and marine industries, which are currently maintained overseas, resulting in millions of dollars being spent overseas, will soon be maintained in-country with tangible value-adds for the Nigerian economy,” he explained.

 

Omotowa made the point at the investment forum held at the proposed site in Badagry, Lagos.

 

NLNG General Manager (Shipping Division), Temi Okesanjo, expressed confidence that the company’s 13 vessels will patronise the dockyard when built.

 

“When our company receives its six additional vessels from Samsung Heavy Industries and Hyundai Heavy Industries, those vessels will also be maintained here.

 

“I have no doubt the other players in Nigeria’s oil and gas industry will also be looking to service and maintain their vessels at this shipyard once it becomes operational,” he said.

 

NLNG has reached out to banks and other financial institutions to promote the potential of a new dockyard, the company’s General Manager (External Relations), Kudo Eresia-Eke, added in a statement.

 

The feasibility study on the project was done by Royal HaskoningDHV, an independent, international engineering and project management consultancy headquartered in The Netherlands.

 

The study is one of the benefits of NLNG’s $1.6 billion contract with shipbuilders, Samsung Heavy Industries and Hyundai Heavy Industries for the building of six new vessels.

 

NLNG, leveraging on the agreement with the ship manufacturers, secured a number of lucrative opportunities beneficial to the Nigerian economy, including the training of about 600 young Nigerians in various aspects of ship-building, procurement of goods from Nigerian companies and the feasibility studies for building a dockyard.

 

Feasibility study on the dry dock was carried out in seven locations – Badagry, Lekki FTZ, Ladol Island, Ogogoro Island, Olokola FTZ, Onne, Bonny – before Badagry was chosen.

 

Maritime sector observers have long lamented the absence of an operational dockyard to cater for very large crude carriers (VLCCs) and liquefied natural gas (LNG).

 

The lack of such a facility has meant that owners of large vessels in Nigeria and other West African countries pay large sums to docking facilities located mainly in Asia, Europe and the Americas.

 

The dry dock is also planned to be operated and managed according to international standards and generate jobs and revenue.

 

NLNG is owned by the federal government, represented by the Nigerian National Petroleum Corporation (49 per cent), Shell Gas BV (25.6 per cent), Total LNG Nigeria (15 per cent), and Eni International (10.4 per cent).

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