8 months gone, $4.3bn NLNG Train 7 yet to take off
Chibisi Ohakah, Abuja
Confusion seems to have surrounded Train 7 of the Nigeria Liquefied Natural Gas (NLNG) resulting in an eight months take-off delay after the signing of the front end engineering design. Yet the NLNG says the projections are still on track
The NLNG Train 7 expansion project is designed as an upgrade from Trains 1-6 and adding of train 7 and associated infrastructure at an estimated cost of $4.3billion. it is designed to increase the company’s production capacity from 22 metric tonnes per annum to over 30 MTPA by NNPC
The Nigeria National Petroleum Corporation, which is one of the shareholders, said in July last year that the FID for the project was expected to be taken in the fourth quarter of 2018.
The NLNG corporate communications and public affairs, Mr Andy Odeh, said the design programmes are being executed on schedule and in line with NLNG’s demand for the highest standards of safety and quality. He said the FEED work is expected to be completed by the second quarter of 2019.
“The NLNG is fully focused on achieving other pre-conditions, which will eventually lead to Final Investment Decision and the success of the project,” he said. FEED is the basic engineering conducted after the completion of conceptual design or feasibility study. The FEED work takes about one year in case of a large-sized project such as an LNG plant.
He hinted that indeed after FID on the Train 7 project, the construction period would last approximately four to five years. “We expect train 7 to be operational by 2024. Long-term contracts have been signed,” he said, describing the global LNG market as dynamic with increasing competition from new supply sources as well as new opportunities in established and emerging markets.
He pointed out the NLNG, with its track record and years of experience in the market, is well positioned to compete in the market with the deliberate commercial and operational strategies, which enables the organisation to deliver volumes efficiently across the globe. He said NLNG focus has always been to be a global player and deliver products at the optimal value worldwide.
The NLNG had participated in the domestic market through the supply of Liquefied Petroleum Gas, also known as cooking gas, since 2007. “We currently supply over 50% of the LPG volumes of cooking in Nigeria. Our vision of helping to build a better Nigeria remains intact and we will continue to explore opportunities to further deepen the use of LPG in Nigeria by making the product available to the market.”
The NLNG is also looking at options of increasing its footprints in the domestic market in line with the Federal Government’s aspiration on gas-based industrialisation in Nigeria. The company is jointly owned by the NNPC (49%), Shell (25.6%), Total (15%) and Eni (10.4%).