Greenville Oil & Gas Company Limited has inaugurated its $500 million (N153 billion) Liquefied Natural Gas (LNG) plant located at Rumuji, Rivers State.
The plant has the capacity to produce 2,250 tons every day and 750 million tons annually, Eddy Van Den Broeke, the chairman of Greenville has said.
“Environment-wise, this is going to be a dull revolution, especially in the transport sector. We should reduce the cost of transport in Nigeria by 35 to 40 percent, “Broeke said at an interview at Rumuji.
“It will, especially, go to areas where you don’t have pipelines. Today in the south the pipeline gas goes straight into the power plants, but once you have liquefied gas, you have to find other markets because the gas you get by pipelines is always cheaper than when you have to liquefy. Also, we must transport it to people that have no access to it,” he explained.
Nigeria holds the ninth largest gas reserves in the world. It is estimated that the country has between 182 and 192 trillion cubic feet of proven natural gas reserves as of December. Gas is essential to powering industries and for use in various sectors including transportation.
The Greenville chairman said the company needs government support to revolutionise the transport sector and provide gas to the manufacturers.
“Government should be company friendly and to assist on all matters like rates of exchange, because all the products are imported at N305/$. We are always in limbo because we don’t know if there is devaluation tomorrow. Some companies have invested, and if you are in the middle of devaluation, you lose half of your assets, and you cannot pay your bankers back locally, “ he said, adding that the country must do more to improve the business environment.
“You commit your own money and you are on your own. Nobody helps you.This is a problem because everybody wants to have foreign investment, but once you are here, you are left completely on you own. That is why you need to have a long-term plan on what to to, otherwise you just lose your patience, which we do every day,” he added.
Ritu Sahajwalla, managing director, Greenville said the project was like a phone without a landline,
“This project is like a mobile phone. You don’t need any transmission lines and pipelines. You produce LNG and you take it directly to the end user. One truck can produce five megawatts of power and that is meant for other stranded power in the north and south, “Sahajwalla said, lamenting that there was already a gulf between Nigeria’s North and its south which many had not observed.
Musa Ibrahim, permanent secretary, Federal Ministry of Water Resources, said the current government would provide all the necessary support for the company to thrive.
“ We have been too dependent on oil. Now the present Government is taking us back to diversification. Public-Private partnership (PPP) is what we need now, and with such a massive investment today, all I will urge my friend is to look for other people that will come and invest so that they can take the project to the higher level.
Everything that this company needs, I assure you, will be provided, “Ibrahim said.
November 23, 2018.
By Odinaka Anudu.