NLNG shareholders set 2025 production target for Train 7
• Approve engineering contracts
With Train 7 completion date expected in five years, shareholders of the Nigerian LNG Limited, yesterday, approved the award of engineering, procurement and construction (EPC) contracts for it’s the project.
Notwithstanding the concerns about the coronavirus pandemic, the Federal Government hopes to conclude the project by 2025, noting that the project will survive the pandemic.
The NLNG announced in September 2019 that it had issued a Letter of Intent for the EPC contract to SCD JV Consortium, which is made up of Saipem of Italy, Japan’s Chiyoda, and Daewoo of South Korea.
The company’s shareholders took the final investment decision (FID) on the liquefied natural gas (LNG) project in December 2019, after being delayed for more than 10 years.
The Train 7 project aims to increase NLNG’s production capacity from 22 metric tonnes per annum to about 30 MTPA, and will form part of the investment of over $10billion, including the upstream scope of the LNG value chain, according to the company.
NLNG is an incorporated Joint-Venture owned by four Shareholders, namely, the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N.V. S.àr.l (10.4%).
According to Managing Director/Chief Executive, NLNG, Tony Attah, Train 7 is the crux of a growth agenda, which will ensure the company’s position as one of the major suppliers of global LNG is maintained.
It will also increase value to its Shareholders and other stakeholders, as well as further reducing the gas that would otherwise have been flared, in fulfilment of its vision of “being a global company, helping to build a better Nigeria.”
Ahead of the FID, he noted that the firm had awarded the front-end engineering (FEED) to some firms, adding that Nigerian vendors would enjoy huge benefits from the project, as LNG is becoming the energy of choice globally, and will position Nigeria properly.
NLNG further remarked that upon completion, the project will support the Federal Government’s drive to diversify its revenue portfolio and generate more revenue from Nigeria’s proven gas reserves of about 200 Trillion Cubic Feet (Tcf).
“Our focus is to start the project and we have absolute support for the project. With the pedigree of consortium that we have chosen, I believe that the project will come to fruition in five years’ time.
“We do not just develop gas but market and produce. Gas is the future and the NLNG is here to enable Nigerians to use gas. NLNG will be the pipeline for gas maximisation,” Attah added at a virtual conference.
The Minister of State for Petroleum Resources, Timipre Sylva, noted that the construction of Train 7 will commence and it will help NLNG to deepen its LPG project in the country.
“No country is immune to the global pandemic, but projects must continue. Without projects like this, the economy will not improve.
“The award of an EPC contract in the LNG industry is welcomed anywhere in the world, because it offers cleaner energy and sustainability. In moments of adversity, the world needs every piece of positivity and assurance of the resilience of the human spit. The government will continue to support the project,” he added.
The Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Mele Kyari, said the project will survive the coranavirus disease, as efforts are being made to address the pandemic, adding that the project will take off in five years, when the virus, hopefully would have ended.
“We are engaging very serious partners to expand current domestic LNG delivery capabilities. This will be connected to the CNG initiatives in addition to the delivery to industry/power,” he added.
On his part, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, said the Train 7 project will generate more revenue to the federal government while also creating about 10,000 direct and almost 40,000 indirect jobs in the country.
“The formal contract signing of the Train 7 signals take-off of the project. This affirms the fact that 2020 is a year of gas. NCDMB is happy about development of local capacities, as the project will brighten the outlook of the industry.
“In addition to attracting huge FDI, it will accelerate local economy as 100% of installation will be done in Nigeria, while 55% of engineering and procurement will be done in-country. We hope this project will trigger other big projects in the country,” he added.
Related
Get the latest news delivered straight to your inbox every day of the week. Stay informed with the Guardian’s leading coverage of Nigerian and world news, business, technology and sports.
0 Comments
We will review and take appropriate action.