Nigeria LNG CEO claims amendment to 1989 law could affect investment

NLNG is a public private partnership between Eni, Total, Royal Dutch Shell and state-owned Nigerian National Petroleum Corp. (NNPC), producing LNG for export. The CEO of the company, Tony Attah, has stated that this move has the potential to negatively impact investment.

The company is currently in the final stage of deciding whether or not it should invest in Train 7. This would cost approximately US$12 billion and increase the facility’s LNG exports from 22 million t to 30 million t.

However, Attah claims that lawmakers in Nigeria’s lower house are looking to cancel guarantees made by the government that helped pave the way for private investment in the company, as well as introduce levies paid by exploration firms equivalent to approximately 3% of the overall budget. Attah claims that LNG produced by the company for Asian and European markets was exempt from the levy under the 1989 act, and that the parliamentary amendement had gone for a public hearing.

Attah reportedly said: “Train 7 will not happen if we don't have the NLNG act as it is today. The amendments as proposed will not deliver value, they will erode value, they will not make NLNG grow.”

Read the article online at: https://www.lngindustry.com/liquefaction/14102016/nigeria-lng-ceo-claims-amendment-to-1989-law-could-affect-investment/