Market News

NSML to establish dry docking facility THE NATION

MAY 15, 2021

By Oluwakemi Dauda


The NLNG Ship Management Limited (NSML), which manages vessels belonging to the Nigerian Liquefied Natural Gas (NLNG), is to establish dry-docking facility to end a capital flight.

NLNG, the Managing Director, NSML, Abdul-Kadir Ahmed, said, does not dry dock its ships in the country due to inadequate  upgraded facilities in the country.

He made this known to The Nation on the sidelines of his engagement with reporters in Lagos.

NSML, he said, is planning to bring in Samsung, Hyundai and some Nigerian investors to establish a dry-docking facility in Nigeria based on the fact that ships in the fleet of NLNG plied international waters.

Ahmed said  the company must carry out its dry-docking of its vessels in a facility that is accepted by the International Maritime Organisation (IMO).

“In line with the International Maritime Organisation (IMO) regulation, every vessel must undergo dry-docking once every three years to retain their safety classification and insurance cover. It costs between $300,000 and $500,000 to dry-dock a vessel, according to prevailing international rates.

“NMSL would have wanted 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 for lack of a dry-docking facility that can handle an LNG vessel in the country, the company is forced to dry dock her vessels outside it.”

He, however, said NSML plans to create dry-docking facilities in Nigeria to end the capital flight.

“As part of our Bonny Gas Transport (BGT) Plus Project, there was a scheme to bring in Samsung and Hyundai 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 at the right standard,” said Ahmed.

The economy is losing several billions of naira to capital flight due to the inability of available docking facilities in the country to dry dock vessels of the NLNG.

In line with IMO regulations, every vessel must dry-dock once every three years to retain its safety classification and insurance cover.

Dockyards in Nigeria include Niger Dock, Dormanlong, Kaztec Engineering, and Naval Dock. They were established to conserve foreign exchange (forex), build indigenous capacity as well as promote technological advancement in the nation.


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