NLNG Rallies Investors for Badagry Dockyard

Nigeria LNG (NLNG) Limited has reached out to the investment community—representatives of banks and other financial institutions— promoting the potential for a new dockyard in the country.

The dockyard, for location in Badagry, follows the conclusion of feasibility studies by Royal Haskoning DHV, an independent, international engineering and project management consultancy headquartered in the Netherlands.

Spokesman for the company, Dr. Kudo Eresia-Eke, stated that feasibility studies for citing the dry-dock were carried out on seven places—Badagry, Lekki FTZ, Ladol Island, Ogogoro Island, Olokola FTZ, Onne, Bonny— before consultants identified Badagry as the best-in-class location for the dockyard.

The studies come as one of the benefits of NLNG’s $1.6 billion contract with shipbuilders, Samsung Heavy Industries and Hyundai Heavy Industries, for the building of six new vessels.

NLNG, leveraging on the agreement with the ship manufacturers, secured a number of lucrative opportunities beneficial to the Nigerian economy including the training of about 600 young Nigerians in various aspects of ship-building, procurement of goods from Nigerian companies and the feasibility studies for building a dockyard.

 “This dry-dock, when completed, holds huge potential for the investment community. Our LNG vessels and very large crude carriers (VLCC) of other companies in the oil and gas, and marine industries, which are currently maintained overseas, resulting in millions of dollars being spent overseas, will soon be maintained in-country with tangible value-adds for the Nigerian economy,” said Babs Omotowa, NLNG’s managing director and chief executive officer at the investment forum held at the proposed site for the dockyard in Badagry.

Observers of Nigeria’s maritime sector have long lamented the absence of an operational dockyard to cater for very large crude carriers (VLCCs) and liquefied natural gas (LNG) carriers as existing dockyards can only handle smaller vessels.

Lack of such a facility has meant that owners of large vessels in Nigeria and some add, the West African region, have had to pay large sums of money todocking facilitieslocated mainly in Asia, Europe and the Americas that can accommodate such large vessels.

The dry-dockis also planned to be operated and managed according to international standards, and when operational,willgenerate revenue and add jobs to the economy.

“I can confidently tell you that if we have a dockyard here, Nigeria LNG with its current 13 vessels in our fleet will be one of your patrons. When our company receives its six additional vessels from Samsung Heavy Industries and Hyundai Heavy Industries, those vessels will also be maintained here. I have no doubt the other players in Nigeria’s oil and gas industry will also be looking to service and maintain their vessels at this ship yard once it becomes operational,” said Capt. Temi Okesanjo, Nigeria LNG’s General Manager, Shipping Division speaking to investors at forum to discuss the potential of the proposed dockyard.

 

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%),  Shell Gas BV, SGBV, (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).