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NLNG awards $10bn Train-7 EPC contract to Saipem, others

… signs FID in October 2019

By Anthony Okafor

The Nigeria Liquefied Natural Gas Company, NLNG, has announced that SCD Joint Venture, JV, Consortium, comprising Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, have emerged the preferred bidder for its Liquefied Natural Gas Train 7 project.

The announcement was made by the Managing Director of the Nigeria LNG, Mr. Tony Attah, at the Letter of Intent Signing Ceremony in Abuja.

He noted that with the presentation of the Letter of Intent to the SCD JV Consortium, the group had been awarded the contract to undertake the Engineering, Procurement and Construction, EPC, for the Train 7 project.

Attah further stated that with the issuance of the Letter of Intent, the NLNG was now closer to the signing of the Final Investment Decision, FID, of the Train 7 project, which he disclosed would be attained before the end of October.

He disclosed that the company had concluded arrangements to ensure that after the signing of the FID, the project would be completed within four to five years, as this would be critical to it remaining competitive and profitable in the global market.

The NLNG chief executive explained that Train 7 is the company’s sure way to attaining the 35 per cent increase in its production capacity, from 22 million tonnes per annum, MTPA, to 30 MTPA.

He noted that at construction phase, the NLNG Train 7 project would attract an investment of over $7 billion; boost Foreign Direct Investment, FDI, profile of the country, and provide about 10,000 jobs.

He said, “With Train 7 on board our operation, we can consistently continue to deliver on our vision of being a global LNG company helping to build a better Nigeria.

NLNG awards $10bn Train-7 EPC contract to Saipem, others
NLNG awards $10bn Train-7 EPC contract to Saipem, others

“We can only achieve this by sustaining our relevance in the global LNG market and in turn, continue to contribute significantly to the economic base of the nation through the payment of our taxes and applicable levies; our Corporate Social Responsibility, CSR, initiatives; our LPG supply to the domestic market and our support for indigenous capacity development.”

Also speaking, Executive Secretary of the Nigerian Content Development and Monitoring Board, NCDMB, Engineer Simbi Wabote, informed the SCD JV Consortium that the Board expects full implementation of the agreed Nigerian Content levels as contained in the approved Nigerian Content Plan for the Train-7 project, covering engineering, fabrication, civil works, local procurement, project services, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, human capacity development, and jobs.

Wabote identified opportunities in the project for local businesses and investments to include the delivery of 100 per cent engineering of all non-cryogenic areas in-country, explaining that the total in-country engineering man hours is set at 55 per cent, exceeding the minimum level stipulated in the NOGICD Act.

He disclosed that on fabrication, the Train 7 scope will bring many of Nigeria’s fabrication yards roaring back into life with over 70,000 tonnes of in-country fabrication, covering condensate stabilization units, tanks, pipe-racks, flare system, non-cryogenic vessels, and many other spools and fittings.

The benefits, he explained, extends to site civil works on roads, piling, and jetties; 100 per cent local procurement of all LV and HV cables, non-cryogenic valves, protective paints and coatings, sacrificial anodes and many other direct procurement from our local manufacturing plants.

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In his goodwill message, Minister of State for Petroleum Resources, Mr. Timipre Sylva, noted that the project had been a long time coming, noting however, that the journey had been credible and thorough.

Sylva, who was represented by the Permanent Secretary of the Ministry of Petroleum Resources, Dr. Folashade Yemi-Esan, disclosed that President Muhammadu Buhari had been looking forward to the commencement of the project, especially with its potential to attract $10 billion investment into the Nigerian economy, as well as numerous other benefits.


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