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NNLG, NCDMB set to seal $1bn Train 7 project deal, applies Nigerian Content Plan guideline
THE stage is set as the Nigerian Content Development and Monitoring Board (NCDMB) and Nigeria Liquefied Natural Gas Limited, NLNG, signs the Nigerian content plan for the NLNG’s Train 7 project, estimated to cost $1bn on Friday in Abuja.
This development was announced after the Executive Secretary, NCDMB, Simbi Wabote, and Managing Director, NLNG, Tony Attah, finalised contractual arrangements at the board’s headquarters in Yenagoa, Bayelsa State, on Thursday with the signing ceremony billed to take place in Abuja.
The Train 7 project is expected to increase NLNG’s production capacity by 35 per cent from 22 million tonnes per annum to 30 million tonnes per annum.
The NLNG Train 7 project is expected to expand the existing NLNG liquefaction and purification facility located in Bonny Island, Rivers State, constituted by 6 LNG Trains, with a Complete Liquefaction Train (Train 7 replica of the Train 6 as is designed).
The project also involves building a new Common Liquefaction Unit, CLU, designed to collect excess treated gas from the existing trains and process it into LNG including building a new export jetty.
In a press release, the NCDMB gives assurance that the Nigerian Content Plan, NCP, would be the guideline for the work scopes to be executed in-country in each project, based on the provisions of the Nigerian Content Act and existing capacities.
“It would also aid the maximisation of Nigerian content deliverables in the project, by giving first consideration to indigenous goods, services, and human resources, as well as opportunities to Nigerian companies,” the board stated.
According to the statement, the NCP plays a key outcome of the service level agreement the NCDMB signed with the NLNG in 2017. The agreement commits the two organisations to timely approvals and compliance with the Nigerian content.
The contract for the Front End Engineering Design of Train 7 project was awarded by NLNG to Japan-based firm, Chiyoda Corporation in a Joint Venture, JV, partnership with Italy – based, Saipem S.p.A. and Daewoo E & C in July 2018.
Saipem S.p.A. Italian oil and gas industry giant would be the leader of the Joint Venture partnership.
The work will be carried out by the JV Partners in collaboration with Nigerian engineering firms, having two main operating centres, in Port Harcourt, Rivers State and Milan (Italy).