Shareholders of Nigeria LNG Limited and the Nigerian National Petroleum Corporation (NNPC) have announced the final investment decision (FID) on building a seventh train (production line) in the Bonny LNG plant.
The shareholders of the Nigeria LNG Limited include the NNPC, which holds 49% shares on behalf of the federal government; Shell Gas B.V (SGBV) holds 25.6%; Total Gaz Electricite Holdings France, 15% stake; and Eni International (N.A) N.V.S.a.r.l, with 10.4% stake.
The Train 7 project will complement the existing six-trains and raise Nigeria’s total production capacity from the current 22 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to 30 million tonnes per annum.
The project, which was first initiated in 2007, is estimated to generate 12,000 jobs as a result of local involvement in construction, production of cables, welding, valves, scaffolding, furniture, painting and medical.
NLNG currently has six trains capable of producing 22 million tonnes per annum (MTPA) of LNG, and five MTPA of natural gas liquids (NGLs), otherwise known as liquefied petroleum gas (LPG) or cooking gas, and condensate – from 3.5 billion standard cubic feet per day (Bcf/d) of natural gas intake.
In March, the federal government and the shareholders had signed the Nigerian Content Plan (NCP) worth $1 billion to facilitate the actualisation of the project.
Speaking at the event on Friday, Mele Kyari, NNPC’s group managing director said the FID ceremony signifies a further demonstration of the restored and growing confidence of international oil companies of global repute in Nigeria’s petroleum space.
“Clearly, this is the result of the strong and focused leadership of His Excellency President Buhari toward the deepening and expansion of oil and gas revenues needed for national development and growth.
“For us in NNPC, today’s FID is the modest result of our focus and consistent commitment toward ensuring that we deliver on our promise to Nigerians as articulated in our TAPE Agenda of enhanced transparency and Accountability, as well as performance excellence.”
He said Nigerians should continue to expect more of ‘value-adding decisions’ from the NNPC, adding that “just last week we signed the agreement with Chevron on long dispute on EGTL in order to pave ways for further investment which we lead to increase in-country gas monetization, and just a week earlier we signed the FEED contract with Seplat on condensate refineries aimed at making Nigeria self-sufficient in gasoline and other white petroleum products productions”.
Tony Attah, the managing director of NLNG Limited, said the project will help reduce restiveness in the Niger-Delta region by providing jobs, calling for more projects in Nigeria to change the socio-economic narrative in the country.