The
management of the Nigerian Liquefied Natural Gas Limited (NLNG) has concluded
plans to deliver liquefied natural gas to major export terminals in Spain,
Italy, France and Turkey this week.
This
followed the out-ofcourt settlement concluded with the Nigerian Maritime
Administration and Safety Agency (NIMASA) over the payment of about $140
million outstanding taxes and levies last week.
Investigations
showed that NIMASA, which detained NLNG vessels, has already released them to
start operations.
The
planned export is expected to boost global supply as the Bonny-basedplant
remains the secondlargest liquefaction site after Ras Laffan in Qatar.
NLNG
General Manager, External Relations, Mr. Kudo Eresia-Eke, who confirmed the
development, stated that NLNG would pay outstanding sums to NIMASA in return
for the immediate release of its vessels.
He
said: “The payment has already been made and the NIMASA blockade consequently
lifted as at about 10am today (Saturday). Furthermore, NLNG agreed to
discontinue all its contempt proceedings against all the parties.
“The
Federal High Court (FHC) upheld its jurisdiction that was challenged by the
Attorney-General of the Federation (AGF) as well as Global West (GW) and NIMASA
in the suit filed by NLNG seeking an interpretation of the NLNG Act and the
legality of taxes being demanded by NIMASA.”
The
commencement of export is expected to generate foreign exchange to major
shareholders, including the Federal Government, which has 49 per cent equity
through the Nigerian National Petroleum Corporation, NNPC.
Others
such as Shell Gas BV, Total LNG Nigeria Limited, Eni International and
N.V.S.arl that have 25.6per cent, 15 per cent and 10.4per cent will also
benefit from the export.
The
dispute started on May 31, this year when NIMASA blocked access to the nation’s
major loading terminals at Bonny Island, following alleged refusal of NLNG
Limited to pay appropriate taxes and levies.
Reacting,
the NLNG argued that its action was guided by the provisions of the Nigeria LNG
(Fiscal Incentives, Guarantees and Assurances) Act, which exempts it from such
levies and charges.
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