UBA ads

SCD Group, a Joint Venture consortium comprising Saipem, Daewoo and Chiyoda has successfully secured the $10 billion Nigerian Liquefied Natural Gas (NLNG), Train 7 project.

The announcement was made on Wednesday at the signing of the Letter of Intent for the NLNG Train 7 EPC contract at the Transcorp Hotel in Abuja. The SCD JV Consortium would be undertaking the engineering, procurement and construction of the project.

The details: The Managing Director of the NLNG, Mr. Tony Attah, stated that the Letter of Intent was a precursor to the commencement of the project, while he disclosed that the Final Investment Decision for the Train 7 would be signed by the end of October.

Attah further disclosed that the company had concluded arrangements to ensure that after the signing of the FID, the project would be completed within four to five years.

The NLNG Chief Executive explained that at the construction phase, the NLNG Train 7 project would attract an investment of over $7 billion; boost Foreign Direct Investment, FDI profile of the country, and provide about 10,000 jobs during the construction stage.

Boost for Gas production: According to Attah, the Train 7 project is expected to boost NLNG capacity from 22 million tonnes to 30 million tonnes. He explained that Train 7 was the company’s sure way of attaining the 35% increase in its production capacity, from 22 million tonnes per annum, MTPA, to 30 MTPA.

“With Train 7 onboard our operation, we can consistently continue to deliver on our vision of being a global LNG company helping to build a better Nigeria. We can only achieve this by sustaining our relevance in the global LNG market and in turn continue to contribute significantly to the economic base of the nation through the payment of our taxes and applicable levies; our Corporate Social Responsibility, CSR, initiatives; our LPG supply to the domestic market and our support for indigenous capacity development.”

Speaking on implementation, Executive Secretary of the Nigerian Content Development and Monitoring Board, NCDMB, Engineer Simbi Wabote, informed the SCD JV Consortium that the Board expected full implementation of the agreed Nigerian Content levels as contained in the approved Nigerian Content Plan for  the Train-7 project, covering engineering, fabrication, civil works, local procurement, project services, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, human capacity development, and jobs.

Meanwhile, Wabote identified opportunities in the project for local businesses and investments to include the delivery of 100% engineering of all non-cryogenic areas in-country, explaining that the total in-country engineering man hours was set at 55%, exceeding the minimum level stipulated in the NOGICD Act.

“Those in the service industry are not left out with the target to assemble over 70% of all non-cryogenic pumps and control valves in-country. Other spin-off opportunities include logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, and many more.


“The target job numbers are very exciting.  At its peak, the project will provide over 40,000 direct jobs and over 100,000 indirect and induced employment of over 100,000 workers. “Beyond the project, there is also a huge scope for local businesses to build capabilities in the maintenance of LNG plants especially in the area of cryogenics.”


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.