NLNG awards engineering, construction contracts for $10bn Train-7 project

The Nigerian Liquefied and Natural Gas (NLNG) Limited has offered, to a consortium of firms,  the contracts of its $10 billion Train-7 project, which is envisaged to be completed in five years.

At a webinar held Wednesday, the joint venture company declared that the engineering, procurement and construction contracts had been awarded to Saipem, Daewoo and Chiyoda, all under the SCD JV group.

Towards the end of December, the deal for the grand project was brokered after twelve years of negotiation and delay.

Once delivered, the Train-7 project will lift NLNG’s output by around 27% to 30 metric tonnes per annum (mtpa) to 22 mtpa.

“With the award of the EPC contracts, the construction phase of Train 7 can now commence in earnest.

“The award of an EPC contract in the industry is welcome news anywhere in the world. Although it might mean more competition for industry operators, it ultimately promises greater availability of cleaner energy necessary for the sustainability of the environment” Timipre Sylva, Minister of State for Petroleum Resources said at yesterday’s conference.

Read also: Foreign reserves increase by $1.14bn in 11 days amidst rising oil price

The Managing Director and Chief Executive Officer of the company, Tony Attah, noted that the gas expansion initiative would lift Nigeria’s export potential by 35%.

“In September last year, the NLNG issued a Letter of Intent to the preferred bidder, SCD JV Consortium, who emerged through a very robust competitive process. That was a strong indication of our readiness for the project execution,” Mr Attah said.

The project hopes to offer 40,000 jobs with 55% of procurement going to Nigerian vendors and 55% of engineering work to be executed in the country.

“It gives me deep satisfaction to see that the contracts for the EPC of the NLNG’s Train 7 have finally been awarded and the contracts fully signed as of today,” Mele Kyari, Group Managing Director of the Nigerian National Petroleum Corporation said.

 

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