The Nigeria Liquified Natural Gas Limited (NLNG) has signed the engineering, procurement, and construction (EPC) contracts for its Train 7 Project with the SCD JV consortium.
According to Eyono Fatayi-Williams, NLNG general manager for external relations, the execution of the contracts signals the beginning of the detail design and construction of the project.
NAN reports that the consortium comprised affiliates of Saipem, Chiyoda, and Daewoo.
Fatayi-Williams said the project is expected to increase the capacity of NLNG’s current six-train plant by 35%, from 22 million tonnes per annum (MTPA) to 30 MTPA.
She quoted Tony Attah, NLNG chief executive officer as saying that the EPC contracts represent another milestone in the company’s journey.
“With the award of the EPC contracts to our preferred bidders (SCD JV), we are guaranteeing that our country remains significantly on the global list of LNG suppliers,” a statement signed by Fatayi-Williams quoted Attah to have said.
“This singular act clearly demonstrates our shareholders’ determination and resolve to sustain the economic dividends that NLNG’s monetisation of our vast natural gas reserves offers our great country Nigeria.”
Attah also expressed confidence in the SCD JV consortium’s competence.
Mele Kyari, group managing director of the Nigerian National Petroleum Corporation (NNPC), commended the NLNG for its successes and business model.
“Nigeria LNG’s successes since it started operation in 1999 continue to prove that the company operates a unique business model that is profitable to all its stakeholders,” he said.
“NNPC and the other shareholders — Shell, Total, and Eni — are proud to be a part of this exceptional Nigerian brand that stands out in the global market.
“I encourage every stakeholder involved in the execution of the Train 7 Project, especially the SCD JV consortium, NLNG Train 7 project team, and the company’s management to leave no stone unturned in making this project a reality.”
First initiated in 2007, the Train 7 project 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.
Upon completion, the project would support the federal government’s drive to generate more revenue from Nigeria’s proven gas reserves of about 200 trillion cubic feet (Tcf) and further reduce gas flaring in the upstream oil and gas industry.
The construction period was expected to last approximately five years, with the first LNG rundown expected in 2025.
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.