Passion for People, Places & Projects – The $10B NLNG Train 7 Project

This past Sunday, I was a guest to the television network of the Nigeria Television Authority (NTA) Live TV Broadcast - Sunday Panorama to discuss how Nigeria’s Gas Resources can be maximally harnessed.

I started by saying since resources are scarce, we needed practical ideas to achieve bold executive outcomes with the least amount of resources. We lost track of our global LNG competitive position when we stopped increasing the capacities of the existing trains due to paucity of funds but with the coming of the NLNG Train 7 project we expect a sudden turnaround going into the future.

One easy way to achieve such bold outcomes is to use our gas as the catalyst to transform the fortunes of the power sector. Globally, natural gas has continued to displace other forms of fossil fuel for power generation due to its low carbon content, efficient technology, abundance and in our own case, proven reserves is estimated at over 200 trillion tcf. With a current generation capacity hovering under 6,000mw, gas therefore presents the most viable option to bridge the existing gap between power generation capacity and demand in Nigeria as there would be no limit to the amount of power Nigeria can generate with her abundant gas resources and the same applies for the domestic gas utilization.

This position also aligns with the ministry of petroleum resources vision which declared this as the decade of gas. I acknowledged the efforts of the government and similar players who are already taking practical steps in this direction, citing the Presidential Power Initiative with Siemens, the AKK Gas Pipeline project, the Shell SNG expansion of its domestic gas distribution channels all of which are aimed at increasing availability and affordability of gas for industrial and domestic purposes.

On actualizing the NCDMB’s target on local content.

I posited that even though the act provides exclusive consideration for Nigerian indigenous companies which demonstrate ownership of equipment, qualified Nigerian personnel and capacity to execute jobs, most local companies are still lacking in this area. Based on the above, I recommended prioritizing the following by local companies:

·        Develop technical capacity starting with partnership with the international experts in the field to truly transfer knowledge;

·        Develop robust management system;

·        Have competent and accredited people

·        Adapt technology in delivering quality service & keep cost at competitive market prices;

·        Having a great vision for their companies but must learn to start small before aiming higher.

On ways to improve relationship between host communities and investors.

I have consistently advocated that host communities must craft a vivid picture of what they want their communities to be, do or have through quality leadership, vision and clarity of purpose while the investors should only act as growth drivers or enablers. The tendency of host communities to literary depend on investors for basic infrastructure, community quota in terms of employment & procurement contracts should only be dessert. Host communities rather than let things happen to them, must make things happen – they should communicate the benefits of this vision to the assets of the investors that they would be inspired to support such initiatives.

On minimizing or eliminating the huge losses in the area of flaring & impact on the citizens health & environment.

While recommending stiffer financial consequences for continuous flaring I called for a legislation or policy framework with definite timeline to put an end to flare by investors. In addition, I  recommended passing all health related bills from host communities to the investors.

It was an insightful, educative and interesting time with the crew and I loved it.

Thank you to the entire management and staff of NTA for the opportunity.