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Nigerian govt seeks to revive Brass LNG as rising pipeline vandalism threatens 2022 N187bn dividends

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The Federal Government has expressed commitment to complete the multi-billion-dollar Brass Liquefied Natural (LNG) Gas project that has been abandoned over 17 years ago.

The Minister of State for Petroleum Resources, Chief Timipre Sylva gave the assurance over the weekend during an inspection of the project site in Twon Brass, Bayelsa State.

He also unveiled Greenville LNG as an interested investor in the Brass project.

In a statement issued by his media aid, the minister was quoted as saying that the project would bring manifold economic benefits to Nigeria.

He added that the Federal Government would give the project top priority because of its present policy thrust in gas exploration across the country.

He said “You know the direction of the government as far as gas is concerned. We want to use gas as a 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 the gas.”

Sylva acknowledged the challenges faced in successfully executing the project in the past and noted that the government would do everything possible to encourage Greenville LNG to invest in the multi-billion dollar Brass LNG project.

“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,” he stated.

Read also: Nigerian govt pledges to increase security to halt pipeline vandalism, crude oil theft

The minister added, “Greenville LNG is a major player in this sector and we know that they are committed to ensuring that the takeoff of this project is achieved.

“We will continue to discuss and offer the necessary incentives to get this project off the ground.”

Meanwhile, Nigeria LNG Limited (NLNG) could be forced to announce a lower dividend this year amid rise in gas pipeline vandalism.

NLNG is expected to pay N187 billion dividend to the Federal Government in 2022.

In continuation of the N208.5 billion received by the Nigerian government in 2021.

However, in recent months NLNG’s gas supply has hit a record low on the back of rising pipeline vandalism and theft.

Last week, Italian oil major, Eni, announced an attack on its 24-inch gas line at Okaka in Yenagoa, which forced the company to declare a force majeure at NLNG in Bonny.

Similarly, TotalEnergies EP Nigeria Limited has currently suspended “gas supply to Alaoji Power Plant due to pipeline vandalism.”

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