The NLNG Ship Management Limited (NSML), the shipping arm of the Nigeria Liquefied Natural Gas (NLNG) company has revealed that the reason the company still dry-dock her vessels outside Nigeria is down to the fact that the country lacks the capacity to dry-dock any of its LNG vessels. This is even as the firm revealed that international financing regulation is a major reason why all 11 LNG vessels are not registered under Nigerian flags.
Addressing maritime journalists in Lagos at the weekend, Managing Director/Ceo of NSML, Abdul-Kadir Ahmed, lamented that the company would have loved to dry-dock its 11 LNG vessels and one LPG vessel in Nigeria due to the huge revenue such would generate for the country, but due to lack of any dry-docking facility that can handle an LNG vessel in the country, the company is forced to dry-dock her vessels outside the country.
According to the NSML Boss, “Yes, capital flight is an issue when it comes to dry docking of our LNG vessels. However, underpinning that issue of capital flight is the capacity and ability to do it here in Nigeria.
“As a Nigerian ship management company, it’s so much easier for me to dry-dock our vessels here in Nigeria, that is if there is anywhere I can do it. At the moment, there is no facility in Nigeria that can dry-dock vessels of the sizes that we manage. I don’t want to sound critical but realistic, there is currently no facility in Nigeria that can handle any of our LNG vessels.
“I am not saying there are no dry-docking facilities in Nigeria. There are dry-docking facilities in Nigeria. However, if you understand the nature and size of an LNG vessel, then you will know that there is nowhere in Nigeria that such vessels can be dry-docked as of today.
“I am an optimistic person, and I pray that one day, we would be able to do such services for LNG vessels in Nigeria.
“But most importantly, underpinning ability is capacity development, and we have already embarked on that path. As part of our Bonny Gas Transport (BGT) Plus Project, there was a scheme to bring in Samsung and Hyundai together with some Nigerian investors to establish a dry-docking facility in Nigeria. Unfortunately, the scheme has not fully taken off, but we are still optimistic. We hope that when it fully takes off, it will commence effectively at the right standard.
“We are optimistic that this happens because as a Nigerian company, it is cheaper and more affordable for us to patronize dry-docking facilities in-country. Unfortunately, at the moment, there is no such facility in the country that can handle our vessels, and this has left us with no other choice than to patronise dry-docking facilities outside the country.”
On whether any of its 11 LNG vessels are flying Nigerian flags, the NSML Boss explained that “None of the BGT vessels that we manage for NLNG are flying Nigerian flags. We currently manage 11 BGT vessels, and all are registered under the Bermuda flag.
“A major reason for this is because of international financing. These vessels are internationally financed and these International financiers always want the vessel to be flagged under-recognised White Listed Flag State. The second reason, which we are working with NIMASA on, is to ensure that we build the capacity of our regulatory agency so that our flag can be accepted internationally.
“Most important to a shipping company is that its vessels must be accepted everywhere it goes. The flagging of vessels under the Nigerian flag is a desire and a national objective, and we at NSML are happy to key into that. However, it requires a lot of work and all hands must be on deck to ensure this.”
Recall that in line with the International Maritime Organization (IMO) regulation; every vessel must undergo dry-docking once every three years in order to retain its safety classification and insurance cover. It costs between $300,000 and $500,000 to dry-dock a vessel, according to prevailing international rates.
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