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.
NLNG 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).