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Nigeria May Delay Seventh LNG Train on Taxes, This Day Says

Bloomberg

 

 

Nigeria May Delay Seventh LNG Train on Taxes, This Day Says 

By Dinakar Sethuraman

Aug. 11 (Bloomberg) — Nigeria may not approve a new liquefied natural gas processing line on Bonny Island because the project’s partners owe “a lot of money” in the form of taxes and royalties, This Day said, citing Senator Osita Izunaso.

The Senate Committee on Gas chaired by Izunaso may review the incentives given to Nigeria LNG Ltd. including a tax-free status under a 1990 Act, the newspaper said. Royal Dutch Shell Plc., Total SA, Eni SpA and Nigeria National Petroleum Corp. are partners in Nigeria LNG.

The government will agree to the seventh production line if the shareholders in Nigeria LNG submitted “proper accounts” of the earnings from the first six trains to the Nigeria National Petroleum Corp., the report said.

Separately, a new Chevron Corp.-led Olokola LNG project may be approved if its partners reduce costs by 30 percent, the report said. The government will not give any incentives to new LNG projects including Brass LNG, whose partners include Eni, Total and ConocoPhillips, the report said.

To contact the reporter on this story: Dinakar Sethuraman in Singapore at[email protected].

Last Updated: August 11, 2008 00:12 EDT

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