Nigeria LNG awards FEED contracts for Train 7

Nigeria LNG (NLNG) has signed front-end engineering and design (FEED) contracts for the seventh liquefied natural gas (LNG) train (NLNG T7) to enhance its output and strengthen its position in the global market as a supplier.

The FEED contracts were awarded to Saipem, TechnipFMC and Chiyoda.

Through the NLNG T7 expansion project, NLNG expects to increase its production capacity from 22Mtpa to more than 30Mtpa.

NLNG will spend $4.3bn towards the project, which involves the debottlenecking of T1-6 and the addition of train -T7 and associated infrastructure.

A joint venture (JV) between Nigerian National Petroleum (NNPC), Shell, Total and Eni, NLNG is expected to make a final investment decision (FID) in the fourth quarter of this year.

NNPC group managing director Dr Maikanti Baru said: “Through critical interface with relevant government agencies, we have played a pivotal role in the actualisation of Trains 1 to 6 (T1-T6).

“Given the success of T1-T6, NNPC is therefore fully committed and aligned with government aspirations to replicate the success of this project. Therefore, our current focus is to kick-start T7.”

Train 2 was commissioned in 1999, while Trains 1 and 6 were respectively commissioned in 2000 and 2007.

Baru noted that the company has generated revenues in excess of $25bn to the Nigerian Federal Government.

NLNG CEO Tony Attah was cited by Bloomberg as saying that the company needs to invest more in new production by 2025 to retain its position as the fourth biggest global LNG exporter.

The company has repaid a total loan amount of $5.45bn, including principal amount of $4.04bn and capitalised interest of $1.41bn, obtained from its shareholders to partly fund the construction of T1-T6.