NCDMB, NLNG ENDORSE $12BILLION FOR NLNG TRAIN 7 PROJECT
The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited (NLNG) has signed the Nigerian Content Plan (NCP) for the $12bn NLNG Train 7 project.
The project which is expected to bring about employment for over 10,000 persons by utilising Nigeria’s huge natural gas reserves, was signed last weekend in Abuja by NCDMB’s Executive Secretary Simbi Kesiye Wabote and the Managing Director of NLNG, Tony Attah.
The ceremony was witnessed by senior officials of the Nigerian National Petroleum Corporation (NNPC), Shell, Total and ENI – shareholders of the NLNG.
The Train 7 project is anticipated to expand NLNG’s production capacity by 35% from 22 million tonnes per annum (mtpa) to 30 mtpa.
Wabote said that the project will provide great opportunities for utilisation of local goods and services in addition to developing new capacities and capabilities for the local supply chain.
He also noted that the increased number of NLNG Trains would also provide huge business opportunities for local businesses to build capabilities in the maintenance of LNG plants, especially in cryogenics.
Attah said that the full value network of the Train 7 project was about $12 billion, including the net cost of the project, estimated in the region of $4 billion to $5 billion and a similar additional spend at its operational base in Bonny, Rivers State.
He said that the Nigerian Content Plan for Train 7 contained clear and robust Local Content provisions that are significantly higher than the previous NLNG projects.
He also stated that the NCDMB and NLNG are fully aligned to collaborate during the operationalisation of the plan, noting that NLNG shareholders have been prepared to take the Final Investment Decision (FID) for the project before the end of Quarter 4 2019.
According to the Nigerian government, the signing of the NCP marks a major step towards launching gas project that is expected to create a flurry of activities in the country’s oil and gas sector while immensely contributing to its economy.