BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Dodgy Deals ›
Dodgy Deal
Nigeria LNGNigeria

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2022-08-12 00:00:00
Nigeria LNG at night. Photo: Chike Roland ORAEKWUGHA via Flickr (CC BY 2.0)

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2022-08-12 00:00:00
Why this profile?

Why this profile?

For more than 20 years, this project has proven to be harmful to local communities. Its expansion would further threaten livelihoods and the local environment, increasing pollution and damaging important ecosystems.

What must happen

People who are still waiting for resettlement compensation must be paid. The project’s expansion should be cancelled to avoid further pollution, deforestation and local economic damage. SMBC Group and Guaranty Trust Bank of Nigeria should resign as Nigeria LNG’s finance advisors, while all involved banks should refuse to finance the expansion.

About
Sectors LNG Terminal
Location
Status
Planning
Design
Agreement
Construction
Operation
Closure
Decommission
Website https://www.nigerialng.com

Nigeria LNG Limited (NLNG) is a liquified natural gas (LNG) terminal, located on 2.27 square kilometres of largely reclaimed land in Finima, on the Niger Delta’s Bonny Island. In operation since 1999, the facility consists of six trains (processing units) that together are able to produce 22 million tonnes per annum (mtpa) of LNG, which is approximately 6% of global LNG trade. The project is a joint venture between Nigerian National Petroleum Corporation (NNPC), Shell Gas B.V., TotalEnergies and ENI International. The construction of Train 7 started in June 2021 and will increase the total production capacity to 30mtpa.

Impacts

Impact on human rights and communities

Displacement and the loss of livelihoods awaited the communities of Bonny Island when Nigeria LNG arrived. Starting in 1991, locals were relocated from ‘Old Finima Community’ to ‘New Finima Community’ to make way for construction. New Finima is a reclaimed mangrove area that was not suitable for the traditional occupations of those who moved there – such as fishing, hunting, farming, carving and weaving – and many lost their main income source. Many faced intimidation during the relocation process, for which a military task force was often used. Among this displaced population are Indigenous communities, dealing with the trauma of being forced from ancestral lands.

Unfulfilled promises of compensation and lease agreements have been made by Nigeria LNG, while the Nigerian government has also not delivered on due compensation: The 1978 Land Use Act allows the state to acquire land in matters of overriding public interest, but compensation must be paid. As recently as January 2022, communities are still claiming they have not received compensation.

Social inequality has increased on Bonny Island since Nigeria LNG arrived, according to reports by Africa-based civil society organisations. Except for some menial jobs, most Nigeria LNG plant workers came from other regions. In Nigeria LNG’s own Environmental, Social and Health Impact Assessment (ESHIA) for Train 7, the company acknowledges that local employment and skill acquisition opportunities will mostly be temporary: “after the construction works, thousands will depart and the area will be left with environmental and human impacts from increased urbanisation and rural land abandonment”.

Long-term social unrest includes protests as recently as June 2021, when Finima community members temporarily closed down the facility to reassert themselves as the rightful hosts of the land Nigeria LNG occupies. In 1999, the facility’s first shipment was delayed after protestors attacked the plant. Since then, wider unrest has been stoked by the increasingly uneven distribution of gas-generated wealth in the Niger Delta. The authorities’ increasingly militarised and violent responses to these sentiments and actions are not easing an already tense situation.

Pollution-related health problems in the local community that can be attributed to Nigeria LNG gas flaring include kidney problems, lung damage, cancer and neurological and reproductive problems among pregnant women and infants. The average life expectancy of the area has decreased with the arrival of the fossil fuel industry.

Women and girls have suffered disproportionately due to a number of factors, predominantly rooted in the local poverty caused by the project: decreasing household income can force young girls out of school, which increases rates of teen pregnancies, prostitution and STD transmission rates.


Impact on climate

Climate change is being felt more keenly in Africa than in other parts of the world. Prolonged droughts, floods and other harmful weather events are affecting the livelihood of millions of people across the continent. Support for and expansion of fossil fuel extraction poses the risk of significant debt and does not align with Paris Agreement goals. Train 7’s ESHIA claims the project will improve NLNG’s energy efficiency, but its overall greenhouse gas emissions will still increase. When NLNG’s removal of around 31 hectares of local carbon sinks such as forest and swamp is also taken into account, it is clear that Nigeria LNG is exacerbating climate change.


Impact on nature and environment

The loss of natural areas and their associated biodiversity has occurred during Nigeria LNG’s land reclamation. For example, marine species have lost breeding grounds. The Niger Delta is the world’s second-largest wetland, of which 2.27 square kilometres – mostly swamp and low-lying rainforest – have been given over to NLNG’s plant.

This already dire environmental situation will worsen with the construction of Train 7. More swamp and forest land must be cleared to build its workers’ village, in a region where the rate of deforestation is already high. The installation of canals and increased shipping activities will then cause an influx of seawater, further threatening the forest.

An LNG-linked reduction in Bonny Island’s air quality is set to be aggravated by NLNG’s Train 7 project expansion.


Other impacts

Corruption scandals have been unearthed by journalists investigating Nigeria LNG. In February 2022, it was reported that LNG was being illegally exported to North and South American countries. This was made possible for more than 20 years through international cartels, led by several highly influential individuals with the support of NLNG. From 2009 to 2013, more than USD 1 billion worth of hydrocarbon products were exported to countries such as Argentina, Brazil, Mexico and the United States. Nigeria LNG denied the claims, demanding a retraction.

Financiers

Nigeria LNG’s Train 7 expansion project reached financial close in May 2020, for a total of USD 2.77 billion. This amount is supported by three export credit agencies: SACE (Italy), K-SURE and KEXIM (both South Korea). Each offered guarantees on the Train 7 loans that were provided by the commercial banks listed below.

Institution type
Finance type
Year
Companies

Nigeria LNG is an Incorporated Joint Venture owned by the Nigerian National Petroleum Corporation (NNPC; 49%), Shell Gas B.V. (25.6%), TotalEnergies Gaz & Electricité​ Holdings (15%) and ENI International N.A. N.V. S.àr.l (10.4%).

ENI

Italy
Profile
Website
Eni is a co-owner and also co-owns 10.4% of the shares in Nigeria LNG Limited.

Nigerian National Petroleum Corporation (NNPC)

Nigeria
Website
The NNPC owns 49% of Nigeria LNG. Formerly a government-run enterprise, the NNPC has operated as a state-owned, limited liability company with no government funding since July 2022.

Shell

United Kingdom
Profile
Website
Shell Gas B.V is a co-owner and holds the largest equity share of LNG capacity among international oil companies (25.6%).

TotalEnergies

France
Profile
Website
Total is a co-owner and one of the largest oil and gas producers in Nigeria through its involvement in more than 50 permits, including nine as operator. Total Gaz Electricite Holdings France owns 15% of the shares in Nigeria LNG Limited.
No companies
Governance
Bank policies
Norms & standards
Other regulations
The following bank investment policies apply to Nigeria LNG:
Sumitomo Mitsui Financial Group
2021-01-14 00:00:00

Management of environmental risks

Date listed represents date as accessed on website
Bank policy
2021-01-14 00:00:00 | Sumitomo Mitsui Financial Group
BNP Paribas
2017-10-17 00:00:00

Commitments to the environment

Bank policy
2017-10-17 00:00:00 | BNP Paribas
Société Générale
2014-09-01 00:00:00

Environmental and social general guidelines for business engagement

Bank policy
2014-09-01 00:00:00 | Société Générale
2020-10-28 00:00:00

Climate strategy

Bank policy
2020-10-28 00:00:00 | Société Générale
Deutsche Bank
2020-08-12 00:00:00

Climate statement

Bank policy
2020-08-12 00:00:00 | Deutsche Bank
Bank of China
2018-05-03 00:00:00

Corporate Social Responsibility Policy

Bank policy
2018-05-03 00:00:00 | Bank of China Hong Kong
2019-04-01 00:00:00

Environmental policy

Bank policy
2019-04-01 00:00:00 | Bank of China Hong Kong
Banco Santander
2020-07-20 00:00:00

Human rights policy

Bank policy
2020-07-20 00:00:00 | Banco Santander
Absa Group
2020-04-16 00:00:00

Sustainability policy

Bank policy
2020-04-16 00:00:00 | Absa Group
Access Bank
2020-09-16 00:00:00

Environmental and social risk management

(page 18 of Risk Management document)
Bank policy
2020-09-16 00:00:00 | Access Bank
DZ Bank
2021-03-15 00:00:00

Sustainable lending policy

Bank policy
2021-03-15 00:00:00 | DZ Bank
2022-01-24 00:00:00

Climate strategy

Date listed represents date as accessed on website
Bank policy
2022-01-24 00:00:00 | DZ Bank
2022-01-24 00:00:00

Human rights policy

Date listed represents date as accessed on website
Bank policy
2022-01-24 00:00:00 | DZ Bank
KfW
2012-10-02 00:00:00

Sustainability guidelines of KfW Bankengruppe

Bank policy
2012-10-02 00:00:00 | KwF Bankengruppe
2014-04-01 00:00:00

Sustainability Guideline

Evaluation of Environmental, Social, and Climate Aspects: Principles and Process
Bank policy
2014-04-01 00:00:00 | KfW Development Bank

Applicable norms and standards

Equator Principles
IFC Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts
IFC Performance Standard 3: Resource Efficiency and Pollution Prevention
IFC Performance Standard 4: Community Health, Safety, and Security
IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement
IFC Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

Land Use Act of 1978, Nigeria

News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Banks and investors’ unrestricted finance for LNG is fueling a future climate bomb

2024-12-05 | Reclaim Finance
Blog
BankTrack news BankTrack blog Partner news Partner blog

New report: Canadian bank RBC the #1 financier of fossil fuels, world’s biggest banks continued to pour billions into fossil fuel expansion

Annual Banking on Climate Chaos report follows the money and details massive bank support for the world’s worst climate-destroying corporations
2023-04-13 | San Francisco | BankTrack, urgewald, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
Blog
BankTrack news BankTrack blog Partner news Partner blog

Standard Chartered & COP27 in Egypt: Locking Africa out of a Just Transition

2022-11-09 | Natasha Ion – BankTrack
BankTrack news BankTrack blog Partner news Partner blog

Nigeria LNG still producing, exporting despite force majeure

2022-10-20 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Nigeria LNG declares force majeure

2022-10-17 | Argus Media
BankTrack news BankTrack blog Partner news Partner blog

Nigeria, EU to consider 'all options' for increased LNG deliveries

2022-02-15
BankTrack news BankTrack blog Partner news Partner blog

EXCLUSIVE: How Top Officials In Nigerian Corporations, NLNG, NNPC Operate International Cartels, Illegally Ship Over $1billion Oil To US, South American Countries

2022-02-14
BankTrack news BankTrack blog Partner news Partner blog

FG threatens to sanction expatriates over Train 7 gas project

2021-04-16 | Premiun Times
BankTrack news BankTrack blog Partner news Partner blog

Nigeria Loses Billions of Naira Over Lack of Facilities to Drydock NLNG Vessels

2021-04-13 | Leadership
Resources
Documents
Videos
Links
2023-04-13 00:00:00

Banking on Climate Chaos 2023

Annual Banking on Climate Chaos report follows the money and details massive bank support for the world’s worst climate-destroying corporations
BankTrack publication
2023-04-13 00:00:00 | Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club, Urgewald
2022-03-03 00:00:00

Locked out of a Just Transition: fossil fuel financing in Africa

BankTrack publication
2022-03-03 00:00:00 | BankTrack, Milieudefensie & partners
2020-08-01 00:00:00

Environmental, Social And Health Impact Assessment (Eshia) For The Train 7 Project

Company document
2020-08-01 00:00:00
2020-11-11 00:00:00

A Just Energy Transition for Africa? Mapping the impacts of ECAs active in the energy sector in Ghana, Nigeria, Togo and Uganda

NGO document
2020-11-11 00:00:00 | Both ENDS

Protesters picket Nigeria LNG on Bonny Island

2022-08-12 12:07:09

Nigerian blogger Linda Ikeji: NLNG has failed the people of Finima

Global Energy Monitor Wiki: Nigeria LNG Terminal

Rainforest Action Network: Nigeria LNG case study 2021

Updates

2022

2022-07-23 00:00:00 | EU explores additional Nigerian gas imports to replace Russian supplies

In anticipation of Russian supply cuts, the European Union is looking to increase Nigerian LNG imports, which currently account for 14% of the bloc’s supply. NLNG is operating at 60% capacity due to pipe vandalism and must reach 80% capacity to satisfy the extra demand.

2020

2020-05-13 00:00:00 | Contracts awarded for Nigerian Train 7 LNG project

Nigeria LNG has announced that the Engineering, Procurement and Construction contracts for its Train 7 expansion project have been awarded to the SCD JV consortium, comprising affiliates of Saipem, Chiyoda and Daewoo.

2019

2019-12-27 00:00:00 | Nigeria LNG signs Train 7 FID

NNPC, Shell Gas B.V., TotalEnergies and ENI International have agreed upon the Final Investment Decision for Nigeria LNG’s Train 7 expansion. It is projected to increase the facility's LNG annual output by 35%, to 30 million tonnes. Guaranty Trust Bank of Nigeria and Sumitomo Mitsui Banking Corp (SMBC) were appointed Train 7’s financial advisers earlier this year.

2019-08-05 00:00:00 | NLNG releases ESHIA for Train 7 expansion

Nigeria LNG has published the Environmental, Social and Health Impact Assessment (ESHIA) report for its Train 7 expansion project. NLNG’s CEO Tony Attah: “At several instances, we consulted our most important stakeholders – our direct neighbours on Bonny Island – about the intricacies of the plans, the impacts and mitigations, and about their concerns and expectations.”

2007

2007-12-03 00:00:00 | Operations commence from Nigeria LNG’s Train 6 expansion

The Nigeria LNG plant’s latest expansion, Train 6, has joined production. Construction of the plant began in February 1996 and a steady expansion campaign has followed, with Trains 1-5 coming online between 12th August 1999 and February 2006.

Send feedback on this profile
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted