NLNG Signs $7bn Train 7 Contracts with Saipem, Chiyoda, Daewoo

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Managing Director and Chief Executive Officer of Nigeria LNG Limited (NLNG), Tony Attah

Peter Uzoho

Nigeria LNG Limited (NLNG) has signed the Engineering, Procurement and Construction (EPC) Contracts for its Train 7 Project with the SCD JV Consortium, comprising affiliates of Saipem, Chiyoda and Daewoo.

Shell-run NLNG had earlier selected a consortium comprising the Italian firm, Saipem; South Korea’s Daewoo Engineering and Japanese Chiyoda to build its $7 billion Train-7 in its Bonny Island plant.

Apart from the $7 billion for the construction of Train 7, an additional $3 billion worth of investment would be spent on upstream gas development to meet the expected demands of the new capacity.

The execution of the EPC contracts now triggers the commencement of the Detail Design and Construction (DDC) phase of the project expected to increase the capacity of NLNG’s current six-train plant by 35 per cent from the extant 22 million tonnes per annum (MTPA) to 30 MTPA.

NLNG is an incorporated Joint-Venture owned by four shareholders – Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (NNPC) holding 49 per cent shares; Shell Gas B.V. –25.6 per cent; Total Gaz Electricite Holdings France–15 per cent; and Eni International N.A. N.V. S.àr.l –10.4 per cent.

Speaking on the contracts’ signing, Managing Director and Chief Executive Officer of NLNG, Mr. Tony Attah, was quoted in a statement signed by the General Manager, External Relations and Sustainable Development, Mrs. Eyono Fatai-Williams, as saying that the EPC contracts represented yet another milestone in the company’s journey towards achieving its vision of being a global LNG company, helping to build a better Nigeria.

He said: “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. This singular act clearly demonstrates our shareholders’ determination and resolve to sustain the economic dividends that NLNG’s monetization of our vast natural gas reserves offers our great country Nigeria”.
Attah expressed confidence in SCD JV consortium’s proven competence, adding that the demonstration of an understanding of NLNG’s business philosophy by the consortium will positively influence the execution of the project and ensure zero harm to people, environment and host communities.

The statement also quoted the Group Managing Director of the NNPC and Director on the NLNG Board, Mallam Mele Kyari, as saying that the “Nigeria LNG’s successes, since it started operation in 1999, had continued to prove its unique business model that is profitable to all its stakeholders.

According to Kyari, 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.

He said: “It is for this reason that our President, Muhammadu Buhari, instructed through the Minister of State for Petroleum Resources that NNPC as a shareholder, it must do everything possible to support all the other shareholders and NLNG’s management to secure the much-needed public confidence from all critical stakeholders, especially the critical agencies of the Federal Government of Nigeria and international investors, to pursue the company’s ambition of adding a 7th train to its existing production capacity.

” 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.”

According to the statement, the project was in fulfillment of the NLNG’s vision of being a ‘global company, helping to build a better Nigeria.’

The project upon completion will 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 country’s upstream oil and gas industry.

The construction period is expected to last approximately five years with the first LNG rundown expected in 2025.