NLNG signs EPC contract for Train 7

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The Nigeria LNG (NLNG) on Wednesday, signed the engineering, procurement and construction (EPC) contract for Train 7, signaling the commencement of the long awaited gas expansion project.

The company in a statement disclosed that signing of the deal with the SCD JV consortium, comprising affiliates of Saipem, Chiyoda and Daewoo, marked the commencement of the project.

According to the NLNG, the project is expected to increase the capacity of its current six-train plant by 35 per cent from the extant 22 million tonnes per annum (MTPA) to 30 MTPA. It hinted that the construction period is expected to last approximately five years with first LNG rundown expected in 2025.

It stated that upon completion, the project would 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. Adding that the project was in fulfilment of its vision of being a global company, helping to build a better Nigeria.

Speaking at the signing of the deal, the Managing Director and Chief Executive Officer of NLNG, Engr Tony Attah said the EPC Contracts represent yet another milestone in NLNG’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 would positively influence the execution of the project and ensure zero harm to people, environment and host communities.

The NLNG is an incorporated Joint-Venture owned by four shareholders, the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (49 per cent), 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).

Also speaking, the Group Managing Director of the NNPC, who is also a Director on the NLNG Board, Mr. Mele Kyari, highlighted the NLNG’s successes and its operating model. He said: “Nigeria LNG’s successes since it started operation in 1999 continue to prove that the company operates a unique business model that is profitable to all its stakeholders. 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.

“It is for this reason that our President, Muhammadu Buhari instructed through the Honourable Minister of State for Petroleum Resources that NNPC as a shareholder 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 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.”


Peace Obi


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