The Federal Government’s failure to get the Brass Liquefied Natural Gas (LNG) project in Bayelsa State, (which it initiated) on stream, nearly 15 years after, has robbed the country of over $24b in estimated revenue, as well as, about 18, 000 jobs.
Indeed, going by the plan of the project sited over 8005-hectares, shareholders, including the Nigerian National Petroleum Corporation (NNPC), were expected to have taken the first Final Investment Decisions (FIDs) since 2007, and recoup their investment in the first five years (2012).
Had the project been up and running, it would have enabled the country produce additional 10 million metric tonnes of gas years, and also secure a brighter future in the international market.
Stakeholders are also insisting that the failure of present and past administrations to act proactively on the plan, has led to a loss of $3b yearly revenue for the past eight years, which is when the first output was expected from the project.
The first shipment of gas from the project, of which the Federal Government has 49 per cent share was planned for 2010, and was expected to stand at 10 million metric tonnes yearly for the past eight years.
Apart from the job loses and that of returns on investment, other projects planned along with the gas plant, including a seaport and airport, among others, which would have had multiplier effects, as well as, help in addressing agitations in the region have remained a mirage.
As the project is considered a strategic catalyst for the acceleration of socio-economic development, concerns are mounting over plans by the Federal Government to scrap it.
Initiated in December 2003, the Brass LNG, which currently has NNPC, ENI and Total as shareholders, was initially estimated to cost about $3.5b, but that has now been pushed to over $25b.
The Guardian gathered that so far, slightly over $1b had been expended on early works, even without the signing of a Final Investment Decision (FID).
The withdrawal of Conoco Phillips, which patented the cascade technology for it mothballed the project.
However, the management decided to adopt the APCI technology used in building the Nigeria Liquefied Natural Gas Company.
At the inception of the project was a major setback, the NNPC held a major equity of 49 per cent, while Conoco Phillips, ENI and Chevron each held 17 per cent.
But to due to unfavourable business climate and sundry conditions, Chevron and Conoco Phillips had to pull out.
Expectedly, their departure left a technical and gas availability setback in the face of low investments in the country’s gas fields.
An official of the Bayelsa State government who pleaded anonymity, told The Guardian that it was regrettable that the former Minister of Petroleum Resources, Diezani Allison Madueke, failed to ensure the actualisation of the project.
“It is regrettable that the investment in Brass LNG has remained in the doldrums.
Honestly, it is saddening that this multi-billion dollars worth of projects now face an uncertain future.
There is no doubt that this will further hamper Bayelsa’s dream of being reckoned with as an investment destination,” he said.
Two years after the Brass LNG project started, the Olokola LNG project was also initiated in 2005.
Sadly, it has remained at the planning stage since then, consequently leading to loss of a projected output of about 12.6 million tonnes of LNG per year, 30, 000 barrels of Liquefied Petroleum Gas (LPG) per day, and 15, 000 barrels of condensate per day.
Olokola and Brass LNG were planned by the Federal Government to increase Nigeria’s share of the global LNG market, but the FIDs on these projects have remained elusive, while the projects have gulped about $600m and $1.2b respectively.
Experts, including the President, Nigerian Gas Association (NGA), Dada Thomas; President of Nigerian Association for Energy Economics (NAEE), Prof. Wumi Iledare; former President, Nigerian Association of Petroleum Explorationists (NAPE), Abiodun Adesanya, and Chairman, International Energy Services (IES) Ltd., Dr. Diran Fawibe, have linked the fate of the projects to unnecessary political interests.
They maintained that these developments have also wasted opportunities the country would have latched onto to place itself in good stead in the global gas market, especially when the price of gas was good.
Thomas, who is also Chief Executive Officer, Frontier Oil Limited, said the country has continued to miss economic benefits from Olokola and Brass LNG projects because the projects, like most other government plans were over politicised, leaving viable economic decisions to suffer.
According to him, the nation missed the projects because Nigeria has continuously failed to make decisions swiftly and properly for the total benefit of the system.


https://m.guardian.ng/news/governments-inaction-robs-nation-of-24b-18000-jobs/

Short version pls

The story too long

I remember this project well. It's a shame we allowed this project to remain in doldrum this long. Gas/ LNG will be the future of energy. The closer we are to achieving this feat, the more expensive it becomes to build a LNG facilities of this magnitude. We allow politics, nepotism, tribalism and religion to override economic decisions. How do we change these warps, primitive and regressing mentalities?

If you think Buhari is slow because of old age now, just wait till he is re-elected and much older!

All these stories sound the same. The government cant the deal done because of one excuse or annother. These projects would brought lots of revenue but the government has a lackadaisical attitude.

But to due to unfavourable business climate and sundry conditions, Chevron and Conoco Phillips had to pull out.

Olokola and Brass LNG were planned by the Federal Government to increase Nigeria’s share of the global LNG market, but the FIDs on these projects have remained elusive, while the projects have gulped about $600m and $1.2b respectively.

Chai! Village people things.
And for six years a Niger Delta son and daughter held sway as president and minister of petroleum and did nothing about this huge project particularly Brass LNG.

One was busy drinking Kainkain, the other was dashing oil assets to her boyfriend's, buying choice properties, furniture and renting private jets. The wasted oil assets ended up as $50 million flat in USA, $250million yatch now lying idle.

Will it be out of place if these two between them lay down their lives if necessary to ensure 18,000 Nigerians mostly from Bayelsa get another start in life.

Buhari who's on his last lap of life has already attracted a $1.5 billion refinery to his rural state with no oil or gas deposit. If his people see him as a hero way the Bayelsa dudes are called heros, which people are more reasonable?

The shame of a Nation.

I don't understand Nigerian politicians. You want to steal money, why not finish this Brass LNG so you can have plenty to steal every year as they produce? You steal yours, the country earns some, the citizens get jobs in addition to amenities and jobs for the host communities?

Every body wins but these buffoons are too daft to see it

Shukuakukobambi:
The shame of a Nation.

I don't understand Nigerian politicians. You want to steal money, why not finish this Brass LNG so you can have plenty to steal every year as they produce? You steal yours, the country earns some, the citizens get jobs in addition to amenities and jobs for the host communities?

Every body wins but these buffoons are too daft to see it

We have leader who lack all-round vision both in governing and stealing.
Good thing is the north is always positioning theirs to take anything oil in Nigeria. Government can't build refineries but can give dangote huge forex to build his and same govt is trying to build pipelines and power plants under same NNPC that can't run a refinery.

Desyner:
We have leader who lack all-round vision both in governing and stealing.
Good thing is the north is always positioning theirs to take anything oil in Nigeria. Government can't build refineries but can give dangote huge forex to build his and same govt is trying to build pipelines and power plants under same NNPC that can't run a refinery.

It's not just a leader, it's all our leaders.

OBJ govt started the idea of the Brass LNG, why didn't he finish it? GEJ, an ijaw, had 5 years in the saddle with a Bayelsa minister of petroleum plus the advantage of high oil price, why didn't he finish it? Why couldn't OBJ or GEJ build these refineries? The PIB or PIGB has been languishing in tbe NASS since the OBJ govt, why hasn't it been passed?

Reducing it to buhari alone is playing the ostrich. All our so called leaders, past and present are at fault on this issue