The Nigeria Liquefied Natural Gas (NLNG) has signed the engineering, procurement and construction (EPC) contract for Train 7, its major gas expansion plan.
The announcement was made by Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, on Wednesday, May 13, 2020, during the signing ceremony via NLNG Twitter handle.
This long-awaited project is expected to help boost the country’s liquefied natural gas output by more than 30%.
Some of the officials at the signing ceremony include Sylva, the Group Managing Director, NNPC, Mele Kyari, Managing Director, NLNG, Tony Attah, Chairman of NLNG, Dr Long John, Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote and others.
In his statement, Sylva said, ‘’The award of an EPC contract in the industry is welcome news anywhere in the world. Although it might mean more competition for industry operators. With the award of the EPC contracts, the construction phase of Train 7 can now commence in earnest.
Going further, the minister said, ‘’It ultimately promises greater availability of cleaner energy necessary for the sustainability of the environment. It is therefore proper to thank the shareholders of NLNG for making this aspiration become reality’’.
‘’They have shown commendable tenacity, foresight and business acumen. It is their persistence over the years that has culminated in a time like this. The tenacity is even more commendable when one considers that they have not allowed the challenges and uncertainties arising from COVID-19 to deter them.”
@HETimipreSylva: "The award of an EPC contract in the industry is welcome news anywhere in the world. Although it might mean more competition for industry operators…" @TonyAttah @SMai_Bornu #NLNGTrain7
— Nigeria LNG (@nigeriaLNG) May 13, 2020
In his comment, the GMD NNPC expressed satisfaction to see that the contracts for the EPC of NLNG Train 7 have been finally awarded and fully signed.
The NLNG, which is owned by NNPC, Eni, Total and Royal Dutch Shell, signed its final investment decision on the Train 7 processing unit late last year.
This expansion comes at a difficult time just as LNG prices in Asia and gas prices in Europe have hit record lows as the coronavirus pandemic worsened already weak demand.
The Executive Secretary NCDMB, Wabote, disclosed that over 40,000 direct and indirect jobs will be available during construction. He admitted that 55% of the engineering activities will be carried out in Nigeria and 55% of all procurements will be done by competent Nigerian vendors.