Nigeria LNG awards contract for construction of Train 7 at Bonny plant

The Engineering, Acquisition and Construction (ECP) contract is expected to come into force after the final investment decision (FID), to be held on October 31, according to various sources. Train 7 increases production from 22 million tonnes per year to 30 million tonnes per year.

A technical study with two designs (FEED) was launched in July 2018. This included both SCD and its competitor in the project work. The loss of the SCD was the B7 consortium, formed by KBR, TechnipFMC and JGC in Japan. Both groups produced the Basic Design Engineering Package (BDEP) to determine prices and offers.

Official comments during the FEED and EPC presentation process highlighted the importance of local content for the shows, with a lot of employment for Nigerians.

At the time, NLNG director Tony Atta said that the dual role of FEED enabled the company to bid early on EPC. In addition to increasing the export capacity, the new train will also deliver more deliveries for internal consumption.

Production of the sixth NLNG train began in 2007. The discussion about Train 7 at NLNG and new factories in Brass and Olokola has long been underway. While the two new projects benefited, and subsequently suffered, as a result of a change in political fate, the attraction of the seventh train of the NLNG is fairly simple. The company has generated income and is the largest tax source in Nigeria.

Although NLNG largely received state aid and received tax breaks, a prominent clash with the Nigerian Maritime Safety and Management Agency (NIMASA) prevented LNG carriers from leaving the facility in 2013. A legal dispute between NLNG and NIMASA remains.

The Nigerian National Petroleum Company (NNPC) owns 49% of the shares of the National Liquefied Natural Gas Company (NLNG), while Shell owns 25.6%, Total 15% and ENI 10.4%.

 

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