Page 6 - GLNG Week 37

GLNG AFRICA GLNG
Nigeria LNG names international consortium as winner of EPC contract for Train 7
Once Train 7 comes on stream, the Bonny liquefaction plant’s production will rise by 8mn tpy to 30mn tpy.
PROJECTS & COMPANIES
NIGERIA LNG indicated last week that it had taken a step toward making a final investment decision (FID) on plans for the construction of a seventh production train at the Bonny Island gas liquefaction plant. Specifically, it revealed that it had chosen an international consortium known as SCD for engineering, procurement and con- struction (EPC) work on Train 7.
In social media postings, Nigeria LNG said it had signed a letter of intent (LoI) with the group, whose members include Saipem (Italy), Chiyoda (Japan) and Daewoo Engineering & Construc- tion (South Korea). It explained that it had done so after naming SCD as the winner of an interna- tional tender for the EPC contract.
Nigeria LNG has declined to reveal the value of the deal under discussion with the con- sortium, citing a confidentiality clause in the EPC contract. According to the Korea Herald, though, industry sources say the project is worth around $5bn.
Meanwhile, Tony Attah, the company’s managing director, said that he expected the construction of Train 7 to bring more than $10bn worth of foreign direct investment (FDI), including the upstream end of the LNG value chain, into Nigeria. The project will also lead to the creation of around 10,000 new jobs while pushing Nigeria LNG’s production capacity up by 35%, he added.
The Bonny gas liquefaction plant is currently
capable of turning out 22mn tonnes per year of LNG. Once Train 7 comes on stream, its produc- tion will rise by 8mn tpy to 30mn tpy.
Shareholders in Nigeria LNG – Eni (Italy), Nigeria National Petroleum Corp. (NNPC), Royal Dutch Shell (UK-Netherlands) and Total (France) – said last week that they expected to make the FID on the Train 7 project by the end of October. Once this milestone is reached, they noted, SCD will be able to start work and wrap up construction of the new production train in four to five years.
The Nigerian federal government has voiced talks with lenders
its support for Nigeria LNG’s choice of an EPC contractor. The Permanent Secretary of the country’s Ministry of Petroleum Resources said last week that it backed plans for “speedy imple- mentation” of the deal.
Financing
On September 17, Nigeria LNG said it was also in talks with lenders on financing construction of Train 7. According to Attah, the company is in discussions with domestic lenders over raising up to $2bn, and with foreign lenders and export credit agencies for the balance. The domestic lenders are reported to be among top 10 in Nige- ria, and include Guaranty Trust Bank and Zenith Bank.
“We have done the financial market pitch to know who has capacity,” Attah said.™
on financing construction of Train 7.
Nigeria LNG said it was also in
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w w w . N E W S B A S E . c o m Week 37 19•September•2019