NLNG Okays Train 7
The Nigerian National Petroleum Corporation (NNPC), Shell, Total, and ENI on Friday signed the final investment decision (FID) to give the go-ahead for the construction of Train 7 of the Nigeria Liquefied Natural Gas (NLNG) project.
The new train is expected to boost output by 35% to 30 million tonnes per year, NLNG said in a statement, and will arrest a decline in Nigeria’s LNG output. NLNG operates six LNG processing units, known as trains, on Bonny Island. Nigeria LNG said it would boost its liquefied natural gas output by more than 30%.
According to reports, the NLNG Train 7 project would rake $20 billion in revenue into the federal government account and create 10,000 direct and 40,000 indirect jobs.
The actualization of the Train 7 Project comes as NLNG celebrates 30 years of its incorporation and 20 years of safe and reliable operations since exporting its first LNG cargo in 1999.
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 fulfilment 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 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).
The construction period after FID will last approximately five years with first LNG rundown expected in 2024.
