NLNG takes FID for Train 7 to raise gas output, 12 years after
The Nigeria LNG Limited (NLNG) yesterday took the Final Investment Decision (FID) for its Train 7 Project, which will increase its production by 35 per cent and its competitiveness in the global LNG market.
This decision allows the expansion to increase the capacity of NLNG’s six-train plant from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA, with the award of contracts for the engineering, procurement and construction activities to follow the closure of bank and Export Credit Agency (ECA) financing, and the finalisation of some key supporting commercial agreements expected in early 2020.
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 Tony Attah, MD/CEO of NLNG, “Train 7 is the crux of a growth agenda which will ensure the company’s position as the 5th major supplier of global LNG is maintained, increasing value to its shareholders and other stakeholders, as well as further reducing the gas that would otherwise have been flared, in fulfillment of its vision of ‘being a global company, helping to build a better Nigeria.”
He further remarked that, “over 12, 000 jobs will be created during the peak of construction, trade and commercial activities within the Niger Delta region equally receiving a boost as a result. The Project will also support the development of local engineering and fabrication capacity in the country. Other opportunities for local content include procurement, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, and many more.”
The Company further remarked that the Project upon completion would 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).
The project follows a string of value adding decisions made under the current Group Managing Director of NNPC, Mele Kyari, who has focused on repositioning the oil and gas industry articulated in the TAPE Agenda of Transparency and Accountability AND Performance Excellence.
Train 7 will complement the existing six-trains and raise Nigeria’s total production capacity from the current 22 million tonnes per annum (MTPA) of LNG to 30 million tonnes per annum, which is an increase of 35 per cent.
NLNG currently has six trains capable of producing 22 million tonnes per annum (MTPA) of LNG, and five MTPA of Natural Gas Liquids (NGLs), that is Liquefied Petroleum Gas (LPG) or cooking gas, and condensate – from 3.5 billion standard cubic feet per day (Bcf/d) of natural gas intake.
Earlier 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.
Stakeholders and industry operators have been longing for the commencement of activities in the train 7 to enable Nigeria begin reaping its short and long term benefits.
On his part, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. 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.
He said: “To the Nigerian economy, as you are aware, it will bring more revenue to the country; more taxes would be paid and, to the economy, it means a lot.
“To Nigerians, it also means a lot. It means creation of jobs. As you have heard, we will have about 10,000 direct jobs that will be created as a result of the Train 7 project. What that translates to is that almost 40,000 indirect jobs that would be created.”
Wabote added that the Train 7 would rejuvenate the economy, saying that a lot of upstream projects would also come up as a result of the project.
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