Nigerian Content
in Shipping
In a major push towards Nigerian Content in shipping, Bonny Gas Transport (BGT), a subsidiary of NLNG, awarded contracts to build six Dual Fuel Diesel Electric (DFDE) LNG carriers—four to Samsung Heavy Industries (SHI) and two to Hyundai Heavy Industries (HHI).
These vessels, built in South Korea under the BGT Plus Project, significantly enhanced Nigerian ownership in NLNG’s shipping operations through the government’s stake.
In addition to these contracts, NLNG made strategic investments to ensure the inclusion of Nigerian goods and services in the construction of the vessels. Key Nigerian Content deliverables included
Training Programs:
Over 700 Nigerians were trained in shipbuilding both in Nigeria and at shipyards in South Korea.
Local Workforce Participation:
Qualified Nigerians were employed in the contractors’ shipyards as part of the construction workforce.
Ship-Repair Yard Feasibility Study:
A study was commissioned to explore the establishment of a ship-repair yard in Nigeria to service large vessels like Very Large Crude Carriers (VLCCs) and LNG carriers. Potential sites included Onne, Bonny, and Lagos.
Maritime Centre of Excellence (MCOE):
NLNG established an MCOE on Bonny Island to offer marine and technical shipping services locally.
Training and Skills
Development
As part of the BGT Plus Project, NLNG facilitated several training programs to build local expertise in shipbuilding and management:
DFDE Shipbuilding Training
35 Nigerians were trained in South Korea, including 28 who completed initial training and seven who trained in Ship Design at International Energy Services Limited (IESL) in Lagos.
Welding Training
Over 420 Nigerians received basic welding training at the Bonny Vocational Centre (BVC) through partnerships with Hyundai Heavy Industries and Samsung Heavy Industries. These facilities were later handed over to BVC to continue advanced welding training for more Nigerians.
Ship Management Knowledge Transfer Project (SMKTP)
Launched in 2008 and completed in 2014, this project facilitated the transfer of ship management expertise from Shell International Trading and Shipping Company Limited (STASCo) to NLNG Ship Management Services (NLNGSS). NLNGSS was subsequently merged with NLNG Ship Manning Limited to form NLNG Ship Management Limited (NSML), a dedicated subsidiary providing ship management services to both NLNG and the international maritime industry.
Vendor Financing
and Procurement
To further support local businesses, NLNG launched the USD1.2 billion NLNG Local
Vendors Financing Scheme (NLVFS), providing Nigerian vendors with competitive financing options.
In its contracting and procurement processes, NLNG actively encourages Nigerian companies to participate while maintaining international standards for quality, cost, timelines, ethics, and safety. Recent awards to Nigerian service
providers include:
Marine Operations
Strategy Contract
Two Nigerian companies were awarded contracts to manage NLNG’s Marine Operations Strategy, which includes the local assembly of passenger boats, escort boats, and other craft using Nigerian materials and resources.
Strategic Partnerships
Collaborations between established vendors and community-based vendors, such as the partnership between SJ Abed and Vikal Nigeria Enterprise for catering services, have strengthened the local vendor base.
Increased Spend
in the Community
NLNG’s strategies to boost local spending have resulted in a significant year-on-year increase in contracts awarded to community vendors.
Training for
Community Vendors
54 community vendors have been trained in business development and project management at the Bonny Vocational Centre (BVC), equipping them to take on larger projects.