A partnership of NNPC, Shell Gas BV, Cleag limited (ELF) and Agip International BV. Began operations in 1999. Built on a 2.72 sq.km on Finima, Bonny Island, it has a base project consisting of two storage tanks with a capacity of 84,200 cubic metres each, four generators with a total capacity of 160MW, NLNG export jetty, seven NLNG ships and a residential area covering 2.08sq.km.

LANDMARK ACHIEVEMENTS
May 1989: Incorporated of Nigeria LNG Limited November 1995: Final Investment Decision (FID) by shareholders for Trains one and two Shell Gas Bv, Cleag Ltd and Agip International BV. January 1996: Commencement of Plant construction September 1998: Commencement of Gas Transmission System. February 1999: FID for Third train August 1999: Start up of Train 2 (plant completed on schedule within budget) September 1999: Commencement of production. October 1999: Export of first cargo February 2000: Start up of Train One April 2000: Export of first Condensate Cargo September 2000: Plant commissioning February 2001: Export of 100th Cargo

• At least 211 cargoes (approximately 630 million British thermal Units) of NLNG delivered to Europe and other parts of the globe, making the company one of the most reliable suppliers of NLNG in the Atlantic Basin
• Over 20 million man hours recorded in construction without loss time injury
• Currently operates seven NLNG vessels
• Two base trains producing at full capacity and beyond
• Currently accounts for seven percent of the world NLNG market in less than three years of operation
• Third train comes on stream in last quarter 2002
• Will eliminate 25% of gas flares in the country when train three comes on stream
• Has a total of 10 vessels in their fleet
• And now that FID for 4th and 5th trains have been signed
• Fourth and fifth trains will make Nigeria one of the three highest producers of NLNG in the world along side Indonesia and Malaysia
• Increase Nigeria's share of the world market from 7% to 13%
• Eight more vessels will be acquired for trains 4&5 making Bonny Gas Transport (BGT) a shipping subsidiary of NLNG that world's largest NLNG ship owner with 18 vessels.

But, the company's greatest accomplishment is its fast tracked expansion programme which will deliver its third train in November this year and the 4th and 5th trains in the year 2005. Already, it has signed long term Sales and Purchase Agreements, SPAs (22 years) for most of the 17 million BCM of NLNG the company hopes to produce yearly from 2005 when the 4th and 5th trains come on stream.

Agreements have also been signed with gas suppliers for stepping up supplies to meet the requirements of the new train. Shell Petroleum Development Company (SPDC JV) will supply an additional 143.23 BSCM of natural gas, bringing its total supplies for the five trains to 321.45 BSCM per year. Agip (NAOC JV) will raise its supply from 77.97 BSCM yearly to 140.64 BSCM per annum. While ELF JV moves from 45.98 BSCM per year to 108.65 BSCM per year.

It is figured that NLNG's three trains will contribute an equivalent of 7% of Nigeria's GDP to the economy. This figure will increase to 20 percent when its five trains come on stream. This is in addition to gains to be made putting out gas flares in the Niger Delta and the trickle down effect of this gigantic investment. Today, the optimists describe NLNG as a six train plant, with two trains in place and four in the pipeline. These two trains have a capacity for producing 5.78 million tonnes of NLNG per annum, an equivalent of 140,000 barrels of oil per day. On completion of five trains in 2005, the company's total NLNG production capacity will increase to 17 BCM yearly. The NLNG is indeed a success story.

Cost & Financing
The base project, which costs about $3.6 billion, was fully financed NLNG's shareholders. NLNG's 3rd Train Expansion is a major capital project and overall project cost, including the cost of the two new NLNG tankers, will be about $1.8 billion.

Financing of the Third Train Expansion was carried out in a similar manner the base project, but in addition to a new equity injection by shareholders, revenues and surpluses from the base project were reinvested in the expansion. Prior to the Final Investment Decision, a new escrow scheme was put in place to hold the funds provided by NLNG's shareholders, who had already invested US$600 million. Most of the cost of the new NLNG tankers were funded by third party finance.

The fourth and fifth trains also known, as NLNG Plus, will be financed by third party funds. About US$160 million has been raised locally from banks. The best of the funds will come from lenders Abroad.

Environment
NLNG offered itself as a solution and an environmental cleaner seeking to minimise the scar of oil and gas exploration in the Niger Delta. NLNG's safety standards have been acknowledged by many as 'world class'. This is for good reasons. On two separate occasions, the project has achieved 10 million man hours without suffering a lost time injury.

Finima Nature Park
Nigeria LNG limited recognises that continued increase of industry activity on Bonny Island is likely to increase pressure on most aspects of community life. This is bound to add pressure on the fragile ecosystem through increased natural resources exploitation. Quite some expanse of land have been cleared and transformed into industrial area, but with good enough left over to remember nature. To this end, NLNG has decided to establish a Nature Reserve to ensure that some areas of the Island are conserved to as near as possible in their natural condition. This is in acknowledgment of the importance of the fauna and flora, the sacrifices of the Bonny people and their aspiration and commitment to develop a permanent record of their natural heritage and culture. It is also part of NLNG's firm recognition and contribution to the national and global conservation objectives consistent with Rio Agenda 21, the Ramsar Convention and Bio diversity Convention.

The nature reserve about 700 hectares, which is named Finima Nature Park, will be managed by a Board of Trustees to be appointed from among the host community. This is a deliberate effort to ensure that the community has a sense of ownership of the park and that it is in their long and short term interest.

The reserve area covers the rain forests and man grove swamps, as well as an area of sandy soil with fresh water ponds and tail timber between the swamps and beach. This diversity is a good representation of the Niger ecology, which will afford a unique opportunity for research and educational activities. Already, the reserve is harbouring some wildlife species of high conservation value, including reptiles, prominent among, which are crocodiles, variety of mammals including monkeys, and some different bird species mostly water fowls.

Partners in Progress
NLNG is aware of the many grievances felt by the people of the oil producing areas. Nevertheless, partnership, rather than sympathy, is the underlining principle of our Community Relations policy. The company does not give handouts. Neither is it patronizing in matters of mutual interest with the communities. Its unique policy is pegged on Stake holding and sustainability which summed up states that all projects are community driven and people oriented and must be enduring.

These principles have found expression in joint efforts to build, mail sometimes even renovate classroom blocks, bore holes, town halls, roads, etc.

Another area of cooperation is human capital development. NLNG awards yearly scholarships to students from its host communities in tertiary institutions whilst also instituting a N500 million naira micro credit scheme for host communities.