Just in: Final Investment Decision on $10bn NLNG Train 7 taken in Abuja
Fresh boost today, December 27, 2019 emerged for the Nigerian gas sector following the successful Final Investment Decision (FID) for Train 7 Project of the Nigeria LNG Limited (NLNG) in Abuja.
The construction period after FID will last approximately five years with first LNG rundown expected in 2024.
Business Hilights Abuja Bureau chief reports that the FID was set for few days ago but was shattered by last minute issue which was later resolved to pave way for Friday’s decision.
With the decision taken, analysts are upbeat that the Train 7 will among other things; push up its production by 35% with strategic boost to NLNG global competitiveness in the LNG market.
Managing Director of the company, Mr Tony Attah explained that “This decision allows the expansion to increase the capacity of NLNG’s six-train plant from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA, with the award of contracts for the engineering, procurement and construction activities to follow the closure of bank and Export Credit Agency (ECA) financing, and the finalization of some key supporting commercial agreements expected in early 2020.
“The actualisation of the Train 7 Project comes as NLNG celebrates 30 years of its incorporation and 20 years of safe and reliable operations since exporting its first LNG cargo in 1999.
Business Hilights recalls that 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%).
Continuing, elated Attah averred that “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 fulfilment of its vision of ‘being a global company, helping to build a better Nigeria’”.
To him, “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.”
Industry watchers agreed that NLNG Train 7, will upon completion, support the Federal Government’s drive to diversify its revenue portfolio and generate more revenue from Nigeria’s proven gas reserves of about 200 Trillion Cubic Feet (Tcf) and brighten Nigeria’s competitiveness in global gas business.
Recall that only last week during the visit of the Nigerian gas professionals, the Minister of State for Petroleum Resources, Chief Timipre Sylva tagged 2020 as Nigeria’s year for gas revolution.