Chineme Okafor in Abuja
The Nigeria Liquefied Natural Gas (NLNG) Limited, yesterday disclosed that it would take a final investment decision (FID) on its new 8 million metric tonnes per annum (mtpa) Train-7 gas plant by the fourth quarter (Q4) of 2019.
The FID on the much publicised $12 billion Train 7 project was earlier scheduled for December last year, but shareholders of the company shelved it without giving a new timeline within which the project would be actualised.
However, the company said yesterday that the approval of its local content plan for the project by the Nigerian Content Development Management Board (NCDMB) has paved the way for the FID to happen.
It also stated that its sourcing of funds for the project which is expected to grow its production capacity from 22mtpa to 30mtpa, and further raise Nigeria’s global LNG market share, has remained healthy.
Speaking at the sign-off of the Train-7 Nigerian content plan between the NLNG and NCDMB, the Managing Director of NLNG, Mr. Tony Attah, explained that plans for the FID to happen were in top gear.
Attah, explained that NLNG’s shareholders which include the Nigerian government represented by the Nigerian National Petroleum Corporation (NNPC); Shell; Total and Nigerian Agip Oil Company (NAOC) were supportive of the Q4-2019 FID.
When asked how far the NLNG had gone with its plans to raise funds for the project, Attah said: “We are not far off as a matter of fact, when you start a project of this nature, you will have estimates in mind. In the course of the presentation, the Executive Secretary (of the NCDMB) mentioned that this particular project is in the region of $4 to $5 billion. But when he referenced the value network, it is beyond the $4 to $5 billion that we will be spending in Bonny.
“It is also about the upstream development which is the real gas that will come to us. That also is a huge investment of $5 to $6 billion. So, potentially, the full value network is almost $12 billion. We have gone to market to raise that fund and we are very positive.”
He explained: “This is the biggest opportunity I will say for Nigeria today. We have 600tcf (trillion cubic feet) of gas which puts us as number nine in the world, but we are very aware of the 600tcf scope that would be proven. The issue with gas is the receiver and that is what the NLNG represents today as the receptacle for gas.
“We are here to enable gas. It is time for Nigeria, and I am even challenged that Nigeria has ridden on the back of oil for more than 50 years, it is now time to fly on the wings of gas.
“With the Executive Secretary saying this FID is here and here for real, my biggest shareholder – NNPC says I support you as a company, go and get this FID, we have the support of government and shareholders and the market is waiting.”
In his remarks, the Executive Secretary of NCDMB, Mr. Simbi Wabote, stated that in line with the local content plan, the engineering of all non-cryogenic areas of the project would be done wholly in-country while its total in-country engineering man-hours has been set at 55 per cent, reportedly exceeding the minimum level stipulated in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Wabote, likewise noted that Train-7 would deliver 100 per cent in-country fabrication of the condensate stabilisation unit; pipe-racks; flare system; and non-cryogenic vessels.
He added that site civil works on roads; piling; and jetties would completely keep local businesses in Nigeria occupied.
“There will be 100 per cent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, and all sacrifice anodes. 70 per cent of all non-cryogenic pumps and control valves will be assembled in-country.
“Other spin-off opportunities includes logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, and many more. With the increased number of trains in NLNG, there is also huge scope for local businesses to build capabilities in the maintenance of LNG plants especially in the area of cryogenics. At its peak, the project will provide direct, indirect, and induced employment of over 10,000 workers,” Wabote, added.