Following the closure of ECA’s bank and export credit agency last week, Nigeria LNG Limited, NLNG, updated its Final Investment Decision, FID, for its Train 7 Project, with a planned 35 percent increase in production, while at the same time increasing its global competitiveness in the LNG sector.
The FID according to a statement released by NLNG General Manager, External Relations, Eyono Fatayi-Williams, will also allow for the expansion to raise its capacity of NLNG’s six-train plant from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA, in line with projected award of contracts for engineering, procurement, and construction activities, coming on the heels of the closure of bank and ECA financing, and the finalization of other key supporting commercial agreements expected in early 2020.
The statement acknowledged that after its first LNG cargo shipment in 1999, the actualization of the Train 7 Project coincided with NLNG’s 30 years of incorporation and 20 years of safe and reliable operations. The statement quoted Tony Attah, MD/CEO of NLNG as saying, “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 fulfillment of its vision of ‘being a global company, helping to build a better Nigeria”, adding:
“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 construction period after FID will last approximately five years with the first LNG rundown expected in 2024. 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%.
The Company stated that the project would help the Federal Government’s push to diversify its revenue base and generate more revenue from Nigeria’s estimated 200 Trillion Cubic Feet, Tcf proven gas reserves.
The Nigerian Shipowners Association President, NISA, Dr. McGeorge Onyung reportedly said the NLNG $10b Financial Deal Train 7 is a broad-based financial source from which indigenous Nigerian shipping operators can capture as much as 30 percent sub-business dip with proper arrangement and positioning.