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Nigerian president instructs
Senate to fund gasoline
subsidy in H2-2022
NIGIERA NIGERIAN President Muhammadu Buhari has between July and December.
instructed the Senate, the upper chamber of the As such, Buhari has directed the Senate to
National Assembly, to allocate NGN2.557 tril- amend the budget and make additional funding
lion ($6.15bn) in funding for the gasoline sub- available. He issued those instructions in a letter
sidy in the second half of 2022. that was read to members of the upper chamber
The federal government had previously on February 15.
planned to eliminate the subsidy as of the end The sum specified by the president, in com-
of June but is now planning to keep the current bination with the money mentioned by Ahmed,
pricing policy in place indefinitely. will bring the total amount of budget funds
However, the 2022 budget does not reflect available for the subsidy up to NGN3 trillion
this about-face, and Finance Minister Zainab ($7.21bn) in the second half of 2022. This is
Ahmed has said that Abuja has only NGN443bn equivalent to the sum of NGN3 trillion that
($1.07bn) worth of budget funds available Nigerian National Petroleum Corp. (NNPC) has
to cover the cost of the subsidy programme requested for this purpose.
CHEC to act as subcontractor
for NLNG’s Train 7 project
NIGERIA CHINA Harbour Engineering Co. (CHEC) is NLNG’s main contractor for the Train 7 pro-
slated to act as a subcontractor for the Train 7 ject is Saipem-Chiyoda-Daewoo (SCD), an Ital-
expansion project at the Nigeria LNG (NLNG) ian-led joint venture that also includes Japanese
plant on Bonny Island. and Korean partners. The scheme is designed to
According to a recent company statement, raise NLNG’s production capacity from 22.5 mn
CHEC won an engineering, procurement and tonnes per year (tpy) to 30mn tpy. It envisions
construction (EPC) contract from the interna- the construction of a seventh production train
tional joint venture that is acting as the main that can turn out 4.2mn tpy, as well as the debot-
contractor for the Train 7 project. Under that tlenecking of existing trains, which will add
contract, the Chinese company will be respon- another 3.4mn tpy of capacity.
sible for designing and building the hydraulic Equity in the NLNG consortium is divided
structure of the wharf and approach bridge at between state-owned Nigerian National Petro-
NLNG’s seventh production train, including the leum Corp. (NNPC), with 49%; Royal Dutch
pile foundation and concrete, the statement said. Shell (UK/Netherlands), with 25.6%; TotalEn-
CHEC did not reveal the value of the contract ergies (France), with 15%, and Eni (Italy), with
or say when it expected to begin work. It did say, 10.4%. The partners began production in 1999
however, that it would also be responsible for and broke ground on the Train 7 project in June
designing and building a steel platform and aux- of last year.
iliary facilities for the hydraulic structure.
Week 07 17•February•2022 www. NEWSBASE .com P9
