By Eguono Odjegba
FOLLOWING the closure of bank and Export Credit Agency, ECA, financing last week, the Nigeria LNG Limited, NLNG, actualized the Final Investment Decision, FID, for its Train 7 Project, projected to increase its production by 35%; while at the same time raising its global LNG market competitiveness.
The FID according to a statement released by NLNG General Manager, External Relations, Eyono Fatayi-Williams, will also allow for the expansion to raise its capacity of NLNG’s six-train plant from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA, in line with projected award of contracts for engineering, procurement and construction activities, coming on the heels of the closure of bank and ECA financing, and the finalization of other key supporting commercial agreements expected in early 2020.
The statement noted that the actualisation of the Train 7 Project coincides with NLNG 30 years of incorporation and 20 years of safe and reliable operations, following its first LNG cargo export in 1999. The statement quoted Tony Attah, MD/CEO of NLNG as saying, “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 fulfillment of its vision of ‘being a global company, helping to build a better Nigeria”, adding:
“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.”
The construction period after FID will last approximately five years with first LNG rundown expected in 2024. 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%.
The Company further remarked that the Project upon completion will 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.
Interestingly, President of the Nigerian Shipowners Association,NISA, Dr. McGeorge Onyung reportedly said the NLNG $10b Train 7 financial deal is a broad based industry financial stream from which indigenous Nigerian shipping operators can with proper arrangement and positioning secure as much as 30% sub business dip.