NLNG Train 7 to increase Oil Production By 35%, Attract $10bn FDI
…Project to create 10,000 new jobs
Promoters of the Train 7 project of the Nigeria Liquefied Natural Gas (NLNG) is expected to increase the NLNG production capacity by 35% from 22million tonnes per annum (MTPA) to around 30MTPA. The project would attract foreign direct investment (FDI) of well over $10billion including the upstream scope of the LNG value chain.
The project is anticipated to create about 10,000 new jobs during the construction stage and on completion, help to further diversify the revenue portfolio of the Federal Government and increase its tax base. The construction period after FID will last approximately four to five years.
On Wednesday in Abuja, the promoters and its partners took the critical step towards meeting the October deadline by signing the Letter of Intent (LoI) for the project. The signing of the LoI signifies the endorsement of a legally binding interim agreement outlining the main points of the Train 7 project by the shareholders which is mandatory before taking the FID.
The NNPC Group Managing Director, Mallam Mele Kyari, who was represented by the corporation’s General Manager, New LNG, Engr. Ahmed Dikko, said there is no going back on taking the Final Investment Decision (FID) on the Train 7 of the Nigeria Liquefied Natural Gas (NLNG) in October, pointing out that it held the potential of boosting activities in the oil and gas sector and ultimately stimulating growth in the nation’s economy.
“Before us today, is the signing of the Letter of Intent (LoI) for the Train 7 project. By 31st October, 2019, we will all gather together again to sign the dotted lines for the Final Investment Decision (FID) of the Train 7 project. This is indeed the wish of NNPC as a shareholder, and I will like to reaffirm to you all our support to carry out all the realignment to make the project a reality”, the GMD stated.
He urged the other shareholders to start preparing for Trains 8, 9 and 10, while assuring the SCD Group, the consortium engaged for the engineering, procurement and construction (EPC) of the Train 7 project, of the sustained support of NNPC towards the successful completion of the project.
Also speaking at the meeting, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, urged the EPC contractor to abide by the local content requirements of the project.
NLNG is owned by four shareholders namely: the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, 49%; Shell Gas B.V, 25.6%; Total LNG 15%, and ENI International, 10.4%.