The Nigerian Maritime Administration and Safety Agency has given its official reason for preventing Nigeria’s liquefied gas from being exported by the county’s gas company.
In a statement sent to the media, the maritime agency confirmed PREMIUM TIMES earlier report that it has prevented the Nigerian Liquefied Natural Gas from carrying out import and export of gas through one of the Bonny terminals, due to debt owed it by the gas company.
In the statement signed by Waredi Enisuoh, its Acting Director, Shipping Development, NIMASA said it, at about 11:30am, blocked “off access to the Bonny Channel from the fairway buoy, at the beginning of the Channel, to buoys 17 and 18.”
“By this blockade,” the agency said, “all Nigeria Liquefied Natural Gas Company (NLNG) vessels, operating in the area are neither permitted to leave nor enter the area until all statutory obligations are met.”
It said it used specialist platforms by GlobalWest Vessel, a controversial company it contracted for maritime security, to block the access.
NIMASA said it was forced to take the action because of the “NLNG’s disregard and demonstrated unwillingness to abide by the country’s Maritime laws especially sections of the NIMASA Act that mandates payment of levies based on gross freight on exports and imports and the Cabotage Law.”
It accused the NLNG of cherry-picking its laws that would be obeyed, saying the gas agency’s management has refused to meet its obligations despite all efforts made by NIMASA for it to do so.
Although the maritime agency did not disclose the specific details of NLNGs debt, sources at the agency had told PREMIUM TIMES that NIMASA’s actions is based on the refusal by the gas company to pay the statutory three per cent levy of every freight entering or leaving Nigeria through the nation’s territorial waters.
The maritime agency concluded that its actions is carefully planned to avoid loss of lives and damage to property; saying the “blockade is limited to the NLNG vessels and other vessels lifting gas on its behalf.”
To compel NIMASA to vacate its decision, PREMIUM TIMES learnt that top officials of both NLNG management and Shell Petroleum Development Company have been making frantic contacts with the Presidency to secure the intervention of President Goodluck Jonathan in view of the dire economic implications of the decision on the country’s export revenue earnings.
The NLNG operates a tight export schedule on its long-term gas contracts to its customers in Europe. Failure to deliver on schedule on the contract might attract huge costs, sources told PREMIUM TIMES.
NLNG reacts
The NLNG confirmed the actions of the maritime agency but described it as unfortunate.
The General Manager, External Relations of the Nigerian gas company, Kudo Eresia-ekeh, said the company did not make any payments to NIMASA because it did not want to be involved in anything that is “illegal.”
Mr. Eresia-ekeh said activities of the gas company are regulated by the NLNG Act and the levy being demanded by the maritime agency is not covered by the act.
He said officials of the gas company explained its position to NIMASA officials at a meeting.
He said the maritime company had initially taken the matter to court, which was fine by the NLNG, but later withdrew it on its own volition.
He condemned the recent action of NIMASA, saying it is wrong for them to take an action that puts “Nigeria’s image in disrepute” because the NLNG is dealing with international customers on long term contracts.
He said NIMASA’s current actions would affect the NLNG’s contracts with its customers.
Premium Times.