Saipem, 2 Other Firms Win $10bn NLNG Train 7
The Nigerian Liquefied Natural Gas Company on Wednesday named the SCD Group as preferred bidder to construct the $10bn NLNG Train 7 project.
SCD Group is a joint venture consortium comprising Saipem, Chiyoda and Daewoo.
The SCD JV consortium would be undertaking the Engineering, Procurement and Construction project for the Train 7.
The multi-billion dollar gas company announced the consortium in Abuja at the signing of the Letter of Intent for the NLNG Train 7 EPC contract.
NLNG’s Managing Director, Tony Attah, said the Letter of Intent was a precursor to the inauguration of the project.
According to him, the Final Investment Decision for the Train 7 project would be signed in October.
The Train 7 project is expected to boost NLNG’s capacity from 22 million tonnes to 30 million tonnes.
It would also boost Nigeria’s Liquefied Petroleum Gas production and help to reduce the import of LPG.
Attah said NLNG had concluded arrangements to ensure that after the signing of the FID, the project would be completed within four to five years.
He said Train 7 was the company’s sure way to attaining the 35 per cent increase in its production capacity, from 22 million tonnes per annum to 30 MTPA.
Attah said at construction phase, the NLNG Train 7 project would attract an investment of over $7bn; boost the Foreign Direct Investment profile of the country and provide about 10,000 jobs during the construction stage.
He said, “With Train 7 on board our operation, we can consistently continue to deliver on our vision of being a global LNG company helping to build a better Nigeria.
“We can only achieve this by sustaining our relevance in the global LNG market and in turn continue to contribute significantly to the economic base of the nation through the payment of our taxes and applicable levies, corporate social responsibility initiatives, LPG supply to the domestic market and support for indigenous capacity development.”
In November 1995, an FID was signed by the shareholders to build an LNG plant, consisting of two trains – Trains 1 and 2, the Gas Transmission System and the Residential Area, in Finima, Bonny Island in Rivers State.
Train 2 was ready on August 12, 1999, and production of LNG began on September 15. Train 1 subsequently came on stream on February 27, 2000.
Train 3 was completed and came into operation in November 2002; Train 4 came on stream in November 2005 and Train 5 was started up in February 2006; and Train 6 became operational in December 2007.
The Executive Secretary, Nigerian Content Development and Monitoring Board, Simbi Wabote, told the SCD JV consortium that the NCDMB expects full implementation of the agreed Nigerian content levels as contained in the approved Nigerian Content Plan for the Train 7 project.
The plan, he said, covered engineering, fabrication, civil works, local procurement, project services, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, human capacity development and jobs.
Wabote noted that on fabrication, the Train 7 scope would bring many of Nigeria’s fabrication yards roaring back into life with over 70,000 tonnes of in-country fabrication, covering condensate stabilisation units, tanks, pipe-racks, flare system, non-cryogenic vessels, and many other spools and fittings.
“The target job numbers are very exciting. At its peak, the project will provide over 40,000 direct jobs and over 100,000 indirect and induced employment of over 100,000 workers,” he added.
The Minister of State for Petroleum Resources, Timipre Sylva, who was represented by the Permanent Secretary, Ministry of Petroleum Resources, Folashade Yemi-Esan, said President Muhammadu Buhari wanted the project to begin as it had the potential to attract $10bn investment to Nigeria.