Brass LNG management tasks Buhari on facilitation of FID

Brass LNG management tasks Buhari on facilitation of FID
August 11, 2015 Advocaat Law Practice

The management of Brass Liquefied Natural Gas (LNG), has charged President Mohammadu Buhari to do all it takes to facilitate the shareholders in taking the final investment decision (FID) of the project, Vanguard reports.

A top management of the gas company, who spoke with Vanguard in confidence also urged Buhari to make the process one of his priorities for the oil and gas industry. The source while responding to speculations that the entire project, located in Bayelsa State may be cancelled outright by the new government, said it would be foolhardy to do so considering that the economics of the project remain very positive.

The Brass LNG project has been in the offing since 2006, and about $2billion has gone down the drain without the shareholders taking the FID, complicated further by the pullout of Americas ConocoPhillips.

However, the source while insisting on the viability of the project noted that the management had decided to reduce the length of the gas pipelines that will move from the shore to the sea, to about 4.5 kilometers, which are all part of the cost optimization process for the project.

He also noted that, The Shareholders are still very much interested; and are holding on to their equities to avoid distractions. To demonstrate their levels of commitment, they are still paying their financial commitments totaling $150million per annum used for the payment of salaries and running of the offices. Right now, they are in the process of re-evaluating the front end engineering design (FEED) which takes an average of six to eight months he added.