The stalled Brass Liquefied Natural Gas (BLNG) project is about to come on stream after 17 years, as the Federal Government is considering a deal with the Greenville LNG Company Limited, a pioneer Domestic LNG producer in Nigeria to revive it and spur domestic gas demand.
Horatius Egua, Senior Adviser (Media and Communications) to Timipre Sylva, Minister of State Petroleum Resources, disclosed this after the Minister inspected the project site in Twon Brass, Bayelsa State, on Saturday.
EnergyDay’s check revealed that the $20 billion Brass LNG project in Bayelsa State and the $9.8 billion Olokola LNG project, located on the border town between Ogun and Ondo States, both initiated by former President, Olusegun Obasanjo in 2003 and 2005, respectively, were stalled due to unnecessary bickering, lack of political will, delay in the assent to the Petroleum Industry Act(PIA), among other issues.
The Minister during the inspection of the project with the management of the Greenville LNG, an interested investor, in the BLNG, said that the Federal Government was desirous of completing the project which was stalled 17 years ago due to some Final Investment Decision (FID) reasons.
Sylva noted that the project would be completed because of the manifold economic benefits it would bring to the nation.
The BLNG, which has trains 1-4 concept, with an annual projected capacity of 8.4 million metric tonnes, according to the statement, was initiated in 2005 with the ground breaking ceremony performed by former President Olusegun Obasanjo on May 14, 2007.
Meanwhile the Minister of State Petroleum Resource, who was joined on the project assessment by the Chairman and Managing Director of Greenville LNG, Mr. Eddy Broeke and Ritu Sahajwalla, said the government would give the project top priority because of its present policy trust in gas exploration.
He said, “You know the direction of the government as far as gas is concerned. We want to use gas as transition fuel and also to use it to diversify our economy.
“You know that with gas you can get so many things and I have said that we can truly diversify our economy through gas,” he said.
Sylva noted that the government would do everything possible to encourage Greenville LNG investment from encountering initial challenges inhibiting the successful execution of the multi-billion dollar BNLG.
He said, “We want this project to pull through this time and we will do everything possible to ensure that the Final Investment Decision is taken as soon as possible.
“Greenville LNG is a major player in this sector and we know that they are committed to ensuring that the take-off of this project is achieved. We will continue to discuss.
The Minister further challenged the international community to shore up their investments in the oil and gas sector in the country.
He decried the speed at which investments were pulled out of Nigeria in the past hampered the growth of the sector.
“We are calling for more investments in the hydrocarbon sector of the economy, especially in gas. We are encouraging companies interested in gas to do so.”Sylva said.
The Minister urged gas investors to take advantage of the gas reserve in the country to invest in the sector.