Senate Laments Undue Delay In Brass LNG Project FID
…summons NNPC, Brass LNG management
The Nigerian Senate has summoned the management of the Nigerian National Petroleum Corporation (NNPC) and the Brass Liquefied Natural Gas (LNG) for a discussion on the extent of implementation of the LNG project in Brass Island in Bayelsa state.
The Senate called for the immediate revival of the even as it lauded the conceptualization, design and commencement of work since 2004. It also urged the executive arm of government to create enabling environment for reputable oil and gas companies to take over the 17% shares each previously owned by ConocoPhilips and Total.
The Senate expressed worry that the project, which is said to have gulped over $1.2 billion as at 2011, covering early site works and maintenance, has remained moribund.
Senator Degi-Eremienyo, who moved the motion on the floor of the chamber, recalled that the Brass LNG is a green field project established to operate Liquefied Natural Gas Plant located in Brass Island, following an agreement signed in 2003 by NNPC with 49% shares; and Conoco Philips, Total and ENI International, with 17% shares each.
The senator regretted that it was the setbacks and delayed recorded in signing of the project’s Final Investment Decision (FID) that led to the di-investment of two shareholders, Conoco Philips and Total.
He described the moribund state of the Brass LNG project a “consciously organised sabotage by several stakeholders including NNPC through diversion of funds budgeted and provided for the execution of the project.”
The Nigerian government, he explained, conceptualized and eventually brought to stream the LNG project to convert the huge gas resources being wasted through gas flaring. He explained further that the idea behind the project was to eliminate negate environmental impact and generate revenue for faster economic growth.
Former President Olusegun Obasanjo performed the ground-breaking ceremony for the takeoff of the project in May 2007 after awarding the contract for the Front-End Engineering Design (FEED) to Bechtel Corporation late 2004 for two LNG trains with a total capacity of 10 million metric tonnes per year.