News Post
Nigeria LNG selects EPC consortium for Bonny Island LNG Train 7
Nigeria LNG has signed a letter of intent for the engineering, procurement and construction (EPC) of Bonny Island LNG Train 7. The letter was signed with the SCD Joint Venture consortium consisting of Italy’s Saipem, Japan’s Chiyoda and South Korea’s Daewoo.
This letter of intent follows dual basic engineering and FEED (Front End Engineering and Design) contracts awarded in 2018 to both the SCD consortium and KBR-led consortium partnered with France’s Technip and Japan Gas Corp. The SCD consortium won the $4.3 billion EPC phase via competitive bidding
Earlier this month NNLG submitted the evaluation of commercial bids for Train 7 to the Nigerian government, another step for the project to be approved. The evaluation plus letter of intent brings the company closer to a Final Investmet Decision (FID) on long-awaited Train 7 project to expand its liquefied natural gas plant on Bonny Island. A previous deadline for a Train 7 FID in the fourth quarter of 2018 was not met.
This project that is expected to increase Nigeria’s LNG production by 35% to 30 MMtpy has been delayed for several years. NLNG said the construction period after FID will last approximately four to five years.
“The Project will form part of the investment of over $10 billion including the upstream scope of the LNG value chain, thereby boosting the much needed Foreign Direct Investment (FDI) profile of Nigeria,” the company statement said.
NLNG, which owns the six-train gas plant on Bonny Island, expects the completion and commissioning of Train 7 to utilize more of the country’s wasted natural gas. Other goals include expanding its liquefaction capacity and gas pipeline network at a time when Nigeria is attempting to remove itself from the list of the highest-flaring nations in the world.
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