By Toye Olori
LAGOS, Sep 24 1999 (IPS)

A multi-billion dollars liquefied natural gas project runs the risk of not meeting its export deadline, following violent demonstrations against the plant by the youth of the local community.

The youth of Bonny Community near the Nigerian Liquefied Natural Gas project plant in Port Harcourt, capital of the southeastern state of Rivers, destroyed vehicles, equipment and waterwells during demonstrations this week.

The Bonny plant started production last weekend and the management says it is shocked by the youth’s actions. “We are shocked about the situation right now,” says Abba Gana, the deputy managing director of the Nigeria Liquefied Natural Gas project.

On Thursday, protestors still blocked the main access road to the plant forcing officials to move food and other goods into the massive complex by helicopter.

An official of the plant told IPS in a telephone interview that technicians needed to gain access to the complex to repair the waterwells to continue production.

The Bonny youth are up in arms over what they allege is a violation of the November 1998 Memorandum of Understanding signed between the Bonny community leaders and by a conglomerate of companies which include Shell, the Liquefied Natural Gas project, among others.

According to the Memorandum, a copy of which was made available to IPS, the Bonny community promised to provide land for the ‘Right of Way’ for the building of roads, the laying of water pipelines and power distribution systems.

The community agreed also to obtain for the joint industry companies and their contractors, before the work started, indemnities from the families owning the land against all claims that might arise from the use of their land for the community.

The 3.8 billion U.S. Dollars gas plant in the Niger Delta, which is described as one of the biggest industrial projects in Africa, is due to begin exporting gas to Europe by Oct. 1.

The project is expected to produce 5.78 million tonnes of liquefied natural gas per annum, and has promised delivery of orders to Italy, Spain, Turkey, France and Portugal.

It is a joint venture between the Nigerian National Petroleum Corporation (NNPC), Shell Gas, Cleag Limited and Agip International.

Nigeria, one of the world’s leading oil producing nations, is estimated to have the 10th largest gas reserves.

Gana said that the plant is “proceeding to meet the deadline of October 1, even in the face of the present situation.”

“We are negotiating(with the community)…As soon as calm returns, we will move into the complex and repair the damaged water wells and we can continue production,” Gana added.

The protestors claim that members of their community have not been employed at the plant. According to figures from the plant, of the 360 Nigerians employed, 57 or 16 percent are from Rivers State, and of these, 12 are from Bonny. Sixty percent of the contract staff are from Bonny.

According to Gana, it is the Bonny community which has not lived up to its end of the bargain as stipulated in the Memorandum.

“We have asked them to form a Utility Board to collect electricity fees and to organise the management of facilities…But the community committee have not been able to do this. We have budgetted for the electricty project, but we cannot spend money until the things we agreed on are put in place,” Gana said.

“On the water project, we also agreed with them on Right of Way and parcels of land. We have even earmarked 1.5 million dollars for the project, but we don’t have the Right of Way to lay pipes,” he added.

Since last year, the oil-rich Niger Delta region has been on fire due to protests by youth. The communities in the region continue to demand greater control over local oil resources.

The growing insecurity raises concerns among foreign corporations about investing in energy projects in Nigeria’s Niger Delta.

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