The Nigeria LNG Limited (NLNG) says it is seeking $7 billion from the global financial market for the sustainabili¬ty of its operations and expansion project which will increase its produc¬tion capacity from 22 million tons per annum (mtpa) to 30mtpa.
Speaking at a ceremony in London on Wednesday to mark the repayment of a $5.45 billion shareholder loan for its existing trains, the Managing Director and Chief Executive Offi¬cer of NLNG, Tony Attah, said that the funds being requested will cover the company's expansion pro¬gramme (construction of Train 7) and investment in the upstream gas sector in Nigeria that will ensure supply to its existing trains (Trains 1 to 6) and the new Train 7.
He added: "Let's get this very clear NLNG is a mid-stream company that has monetized over 5.96 trillion cubic feet (tcf) of associated gas (AG) which would have otherwise been flared thus helping to build a better Nigeria. However, what we are do-ing is not just looking to fund the expansion of the plant but also to ensure sustainability of feed-gas supply to the plant, for the continued success of NLNG. All of these align with our belief that gas is a catalyst for industrial and to become a leading gas producing country".
According to him, the success story of the NLNG project was due to some key critical success factors which include the shareholding and gover¬nance structure of the company that has made the company an indepen¬dent incorporated joint venture, guaranteeing an independent board of di¬rectors, effective decision making as well as funding for its projects which is critical for the sustenance of this successful project.
"Over decades, the com¬pany has raised funds for 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", he said.
In his remarks, the Deputy Managing Director of NLNG, Sadeeq Mai-Bornu, stated that NLNG has contributed immensely to Nigeria's economy since its inception when the first LNG cargo was loaded in October 1999.