NIGERIA: Bonny Gas finalises deal for N254bn vessels’ acquisition

 Nigeria LNG Limited, NLNGBonny Gas Transport, BGT, a subsidiary of Nigeria LNG Limited, NLNG, yesterday, finalised the deal for the acquisition of six new vessels valued at N254.4 billion ($1.6 billion).

According to a statement by the company, signed by Kudo Eresia-Eke, Acting General Manager, External Relations, the deal which was finalised in London, will see the company acquiring four vessels from Samsung and two from Hyundai, two Korean companies.

Eresia-Eke said the six vessels will have a combined capacity of 1.053 million cubic meters and are expected to increase BGT’s overall shipping capacity by 17 per cent.

Eresia-Eke stated that the tankers will be delivered over a period of nine months from October 2015 to June 2016.

Continuing, Eresia-Eke disclosed that the new ships which will replace BGT’s six oldest vessels were ordered through retained earnings from BGT, additional borrowings from an existing facility and new vessels debt provided by a combination of Korean Export Credit Agencies, international, regional and local commercial banks.

Eresia-Eke added that, “This particular deal entails BGT supporting more development of Nigerian Content through utilization of Nigerian manpower, services and materials in all elements of the value chain in support of Nigeria LNG’s commitment to increased local productivity.

“This is in advancement of government’s aspiration to increase the country’s participation in the maintenance and repair of large ocean going vessels.

“BGT, a subsidiary of Nigeria LNG Limited (NLNG) was established in 1989, to provide shipping capacity for NLNG projects. It directly owns 13 of the 24 vessels which deliver liquefied natural gas for Nigeria LNG to customers across the world. The remaining 11 vessels are owned via long term leases.

“NLNG is a Nigerian Joint Venture company whose shareholders are the Nigerian National Petroleum Corporation (49 per cent), Shell Gas B.V. (25.6 per cent ), Total LNG Nigeria Limited (15 per cent) and Eni international n.a.n.v. (10.4 per cent).”

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