Partners in the Nigeria LNG Limited hope to take a final investment decision (FID) on building a seventh train (production line) in the Bonny LNG plant by the fourth quarter of 2018.
This will increase production at the $15 billion plant to 30 million metric tonnes per year.
The Bonny LNG plant currently produces 22 million MT/year from six trains.
However, plans to build the Train 7 have remained on the drawing board for over eight years as the project owners, Shell, Total, Eni and the Nigerian National Petroleum Corporation (NNPC) bicker over the cost and fears over the availability of enough gas feedstock.
While the delay persisted, the cost of the project had ballooned from initial sum of $9 billion to $15 billion.
Tony Attah, managing director of NLNG Ltd, said the partners were now making steady progress towards achieving the FID on Train 7 Plus which is set for the fourth quarter of 2018.
Attah said the NLNG board hoped it would be able to raise the $15 billion project cost from international creditors, as the vexed issues of finding gas for the Train 7 was not an issue.
“With Nigeria’s proven reserves of about 192 trillion cubic feet of natural gas, and another 600 trillion cubic feet in potential, this [Train 7] milestone development is coming at a crucial time,” Attah said.
“NLNG remains a success and we are determined to sustain our status as an inspiration to Nigeria. The company has generated $90 billion in revenues as well as paid $5.5 billion in taxes to the government. The company has also has helped monetise the country’s gas resources and significantly contributed to reducing gas flaring from 65% to less than 20%.”
NLNG had said the project will create 18,000 new jobs, especially for youths in Niger Delta.
NLNG said in 2013 it had already contracted the output from the new train to potential buyers in Asia — Japan, China, India and Malaysia — while the company in the same year awarded contracts to South Korean ship construction giants Samsung and Hyundai Heavy Industries to build six new ships at a cost of $1.6 billion for the additional output.
Currently, NLNG is serviced by a committed fleet of 23 LNG vessels which is the largest fleet in the sub-region.
This is inclusive of six new vessels, constructed in South Korea and delivered between 2015 and 2016 as replacements for six maturing vessels within its operations inventory.
In addition, NLNG has contributed significantly to the domestic LPG industry, supplying some 40% of cooking gas to Nigerian homes and businesses.
This intervention continues as part of strategies and initiatives.