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Senate wants Nigerians to participate in $10 billion investment project
SENATORS during their plenary session on Friday threw their weight behind the $10 billion Train 7 project investment in the country’s gas sector, as they urged Nigerians to actively participate in the project, according to a report.
Teslim Folarin, Chairman of the Senate Committee on Local Content, disclosed this after the presentation by the Managing Director of the Nigeria Liquified Natural Gas (NLNG), Tony Attah
In a statement by his Senior Legislative Aide, Bamidele Ajibola, Folarin said that Attah had assured the committee that the Train 7 Project would expand gas production capacity in the country by 35 per cent.
He was excited at the expansion of the nation’s gas capacity from 22 million metric tonnes per year, to 30 million metric tonnes per year through the Train 7 project, urging Nigerians to be engaged in the gas sector which he said will be constructed by the SCD consortium, comprising of Saipem, Chiyoda and Daewoo.
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 Senator stressed that through this foreign direct investment on the project, the gas sector and the nation stands to witness unprecedented benefit.
He, however, said that the NLNG should expect further invitations from the Senate that is determined to ensure that the project complies with Local Content laws when the Final Investment Decision, FID, on the Train 7 project was signed.
Attah revealed that NLNG was owned by four shareholders, namely the Federal Government, represented by the Nigerian National Petroleum Corporation, NNPC, with 49 per cent stake, Shell Gas, which has 25.6 per cent, Total Gaz Electricite with 15 per cent and Eni International with 10.4 per cent. NLNG selected the SCD consortium for the Train 7 project after a thorough bidding process.
The SCD consortium, he said, would collectively build the $7 billion Train7 LNG expansion plant.
Attah further said that an additional $3 billion worth of investment in upstream gas development would be spent to meet the expected demands of the new capacity.
He also said this investment would raise the global profile of Nigeria as the fourth largest exporter of LNG in the world.
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. Saipem has two main operating centres in Port Harcourt, Rivers State and Milan, Italy.