Reported in Feb 2022
Nigeria LNG Train 7 Project, Host Communities in Orashi threaten to shut it down
The host communities of the Nigeria LNG Train 7 Project in the Orashi area of Rivers State under the aegis of the Ekpeye Oil and Gas Pipeline Host Communities (EOGPH) have threatened to shut down the project by moving against all multinationals in their area if the federal government and companies involved failed to duly consult them and address their grievances.
Chidi Idogini, the National Chairman of EOGPHC said that it was wrong that the federal government and other parties involved in the Nigeria LNG Train 7 Project were only dealing with Bonny communities, regretting that attention had not been given to Ekpeye people where the gas would be drilled.
“Ekpeye is as important, or even more important in Nigeria LNG Train 7 Project as Bonny” Chidi Idogini
According to the National Chairman of EOGPHC Ekpeye is as important, or even more important, for the Nigeria LNG Train 7 Project as Bonny while the former has been impoverished for too long.
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“Attention ought to have been given to Ekpeye communities where the raw material for the project will be gotten from than Bonny where only a terminal is being sited,” said Mr. Idogini adding that the project implementation cannot begin without the involvement of the Ekpeye nation.
“The project is totally a business that has to do with Ekpeye and partly Ogba communities. The Nigeria LNG Train 7 Project team, therefore, has to come and discuss with us, otherwise will not allow any company to come to Ekpeye land to undertake the drilling works,” assured the National Chairman of EOGPHC.
Background
Nigeria LNG Train 7 project is an ongoing expansion of the Nigeria LNG Terminal at Bonny Island, Nigeria, which currently has a total of six operational LNG processing units, four 84,200m³ LNG storage tanks, four 65,000m³ refrigerated storage tanks, and three 36,000m³ condensate storage tanks.
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In addition, the terminal also has a common LNG processing fractionation plant, a common condensate stabilization plant, two LNG export jetties, 23 dedicated LNG ships and a materials off-loading jetty, and ten gas turbine generators with a combined capacity of more than 320MW.
Owned and operated by Nigeria LNG (NLNG) Company, a joint venture between Nigerian National Petroleum Corporation (NNPC), Shell Gas, Total, and Eni, the terminal currently has the capacity to produce 22Mtpa of LNG and 5Mtpa of liquefied petroleum gas (LPG) and condensate per annum (Mtpa).
The Nigeria LNG Train 7 project will primarily add a seventh LNG processing unit with a production capacity of 4.2Mtpa and supporting infrastructure including an 84,200m³ storage tank, a 36,000m³ condensate tank, and three gas turbine generators at the terminal.
The project, whose cost is approximately US$ 6.5bn, will also include debottlenecking of the existing six trains that will increase the processing capacity by 3.4Mtpa, and the construction of wells and pipelines to supply additional feed gas to the LNG facility.
Upon completion, the Nigeria LNG Train 7 project will increase the Nigeria LNG Terminal production capacity by 35% from the current 22mtpa to 30mtpa.
Project timeline
2018
In July, NLNG awarded Front End Engineering Design (FEED) contract for the train seven to two consortia of engineering companies, namely B7 JV Consortium and SCD JV Consortium.
The B7 JV Consortium is made up of KBR, TechnipFMC plc, and Japan Gas Corporation (JGC), while the SCD JV Consortium includes Saipem S.p.A of Italy, Chiyoda Corporation of Japan, and Daewoo Engineering & Construction of South Korea.
In the same year, Guaranty Trust Bank of Nigeria and Sumitomo Mitsui Banking Corp. (SMBC) of Japan were appointed as the Financial Advisers for the Project.
2019
In March, the NLNG and the Nigerian Content Development Monitoring Board (NCDMB) signed off an approved plan for Nigeria Content (NC) for NLNG’s Train 7 Project.
In September, NLNG issued a Letter of Intent for the Engineering, Procurement, and Construction (EPC) Contract of the Project to SCD JV Consortium.
In December, NLNG’s shareholders took the Final Investment Decision (FID) for the project in Abuja.
Reported in September 2019
LNG 7th train at Bonny Island commissioning in 2024
The Nigeria LNG (NLNG) joint venture has signed a letter of intent for construction of the plant’s 7th train, with the expansion set to be made official by late October as part of US $12bn project expansion plan.The preliminary agreement for the engineering, procurement and construction (EPC) contract was signed with SCD JV – a consortium formed by Italin company Saipem, Japanese company Chiyoda corporation and South Korean company Daewoo E&C.
Construction of the 7th train at the Bonny Island LNG facility is scheduled for commissioning in 2024. The project will include a new liquefaction unit, an 84,200m³ storage tank, a 36,000m³ condensate tank and three gas turbine generators. The six-train Bonny LNG plant is located in the Niger Delta.
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LNG Train 7 project
According to Tony Attah, Managing Director for NLNG, the company is making significant progress towards the realization of the extension project. “Intent as it connotes, is a very clear statement that we are forging on with Train 7. The letter of intent is a bold statement that we have selected our preferred bidder for the contract. With Train 7, Nigeria will maintain its place in the global gas market, and NLNG will continue to support the development of our domestic LPG (liquefied petroleum gas) consumption through our commitment of 350 million tonnes to the domestic market,” Attah said.
The project will be owned and operated by Nigeria LNG, a joint venture between Nigerian National Petroleum Corporation (NNPC) with 49% stake, Shell Gas with 25.6% interest, Total with 15% stake and Eni with 10.4% interest. Once the deal is approved by Nigerian authorities, Daewoo E&C and its partners will be responsible for the construction of the LNG plant with an annual production capacity of 8 million tonnes and other associated facilities on Bonny Island, Nigeria.
Upon completion, the project will increase the Nigeria LNG facility’s total production capacity from 22 million tonnes per annum (mtpa) to 30 million tonnes per annum (mtpa). The project will increase the plant’s liquefaction capacity by 8 million tonnes per annum (Mtpa), or 35%, to reach 30 million barrels per day (Mmbpd).
Reported in May 2020
LNG capacity to rise following the signing of an EPC for the construction of Train 7 Project
The Nigeria Liquefied Natural Gas (NLNG) Company Limited, which is partly owned by the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation has signed the engineering, procurement, and construction (EPC) contract for construction of Train 7 Project
The signing of the EPC Contracts with the SCD JV Consortium made of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, is believed to have triggered the commencement of the Detail Design and Construction phase of the project which is expected to increase the capacity of NLNG’s current six-train plant by 35% from the present 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.
The search for an EPC contractor
The search for an EPC contractor for the construction of Train 7 Project began in July 2018 with the signing of Front End Engineering Design (FEED) with two consortia in a Dual FEED Process. The consortia, B7 JV Consortium, and SCD JV Consortium participated in the Dual FEED Process which led to their bidding to construct the train.
Also Read: NNPC to double Nigeria’s domestic oil and gas supply by 2023
In September last year, NLNG issued a Letter of Intent for the EPC Contracts of the project to SCD JV Consortium. The Letter expresses the intention to award the main EPC Contract, subject to the signing of the terms, to the preferred bidder after a contracting process that has been transparent, and in full compliance with all applicable laws and good industry practices.
NLNG took the Final Investment Decision (FID) on 27 December 2019, which was followed by the approval of the Nigerian Content Compliance Certificate (NCCC) and Approved Vendors Lists (AVLs) by Nigerian Content Development and Monitoring Board (NCDMB) in April this year.
Present during the signing of the EPC contract, the Group Managing Director of NNPC Mr. Mele Kyari, expressed satisfaction to see that the contracts have been finally awarded and fully signed.
The Project is expected to create about 10,000 new jobs during the construction stage, and on completion, help to further diversify the revenue portfolio of the Federal Government and increase its tax base.
Reported in June 2021
Nigeria LNG Train 7 project officially inaugurated by Muhammadu Buhari
President Muhammadu Buhari has officially inaugurated the Nigeria LNG Train 7 project to mark the start of the construction of a new liquefaction unit, an 84,200m³ storage tank, a 36,000m³ condensate tank, and three gas turbine generators at the Bonny Island LNG facility.
“Today I have performed the groundbreaking ceremony for a very important project and a milestone in the country’s oil and gas sector. I have been passionately associated with this project for a long time, since the formative years of the LNG project. As Minister of Petroleum Resources back in 1978, I kicked off Nigeria’s first foray in the LNG Business and we have not looked back ever since.“
“I am very delighted that we have reached yet another milestone today, under my watch. We will continue to deliver on and enable transformational public and private sector projects of this nature to the people of this nation,” said the West African country’s president.
Upon completion, the project will increase the capacity of NLNG’s current six-Train plant by 35% from the extant 22 Million Tonnes Per Annum (mtpa) to 30mtpa.
Project Development
The Nigeria LNG Train 7 project is speared by Nigeria LNG Limited (NLNG), a joint venture between the Nigeria National Petroleum Corporation (NNPC) and international oil majors Royal Dutch Shell, ENI, and Total.
NLNG took the Final Investment Decision (FID) in December 2019, which was followed by the approval of the Nigerian Content Compliance Certificate (NCCC) and Approved Vendors Lists (AVLs) by the Nigerian Content Development and Monitoring Board (NCDMB) in April last year.
In May 2020, NLNG awarded the Engineering, Procurement, and Construction (EPC) Contracts for its Train 7 Project to SCD JV Consortium, comprising affiliates of Saipem, Chiyoda, and Daewoo, a step that triggered the commencement of the Detail Design and Construction phase of the Project.
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reported in August 2021
New participant appointed for Nigeria LNG Train 7 project
SCD JV Consortium, the contractor in charge of the Engineering, Procurement, and Construction (EPC) of the Nigeria LNG Train 7 has appointed Air Products and Chemicals, Inc., an American international corporation and world’s leader in liquefied natural gas (LNG) technology and equipment to provide the main cryogenic heat exchangers (MCHEs) for the project.
Also Read: Nigeria LNG Train 7 project officially inaugurated by Muhammadu Buhari
The American international corporation will also provide process technology and proprietary processes to the JV. Noteworthy, Air Products has previously provided the MCHEs and process technology for the first six trains at the NLNG at Bonny Island with initial on-stream LNG production from the units beginning in 1999 for the first, to 2007 for the sixth.
Proof of quality products and good customer service
Speaking on the appointment Dr. Samir J. Serhan, the Chief Operating Officer at Air Products said that they are proud that the six heat exchangers the company built at the NLNG at Bonny Island continue operating, and that the Nigeria LNG Train 7 will utilize two additional Air Products’ heat exchangers from Air Products.
“Every customer is an important one, but returning customers reveal a lot about how you are operating as a business, and how your technology is viewed at the marketplace. Air Products prides itself on the manufacture of quality products and delivery of excellent customer service,” said Dr. Serhan.
Production of the MCHEs
The Allentown, Pennsylvania headquartered company will manufacture the main cryogenic heat exchangers at its Port Manatee, Florida manufacturing plant, in the southeasternmost U.S. state.
The Port Manatee facility was opened in January 2014 and in October 2019, the company completed a 60% expansion of the facility in a bid to meet the needs of the growing LNG industry.
We are looking forward to the comm we commencement of this great project. I can’t wait to be part of it.
When would it start, I mean employment. This is May 2022.
When will the construction be completed and employment of indigenes kick off. The time wasting is excessive. Will it take a year before employment will be effected?
We all can’t wait for the project to kick off formally.