The Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni have signed the front end engineering design (FEED) contract of Train 7 of the Nigeria Liquefied Natural Gas Ltd (NLNG)
The NLNG T7 expansion project aims to increase NLNG production capacity from 22 mpta to over 30 mtpa by the debottlenecking of T1-6 and the addition of train -T7 and associated infrastructure at an estimated cost of US$4.3bn. The target Final Investment Decision (FID) date is fourth quarter 2018.
Speaking at the occasion, NNPC Group Managing Director, Dr Maikanti Baru, expressed the corporation’s readiness to support the Federal government’s aspirations to actualizing Train-7 of the project.
Jointly owned by the NNPC (49 per cent), Shell (25.6 per cent), Total (15 per cent) and Eni (10.4 per cent), NLNG’s successful journey started in 1999 with the commissioning of Train 2 ahead of Train 1 which was commissioned in 2000. The Company grew to a Six Train facility with the commissioning of Train 6 in 2007.
The company sourced a total principal amount of US$4.043bn from its shareholders in their respective shareholding proportions to partly fund the construction of Trains 1-6.
“Through critical interface with relevant Government agencies, we have played a pivotal role in the actualization of Trains 1 to 6 (T1-T6). Given the success of T1-T6, NNPC is therefore fully committed to and aligned with the government aspirations to replicate the success of this project. Therefore, our current focus is to kick start T7,” Baru noted.
Describing the NLNG as a jewel in the crown of Nigeria as well as a very strategic investment for the nation, Baru stated that the NLNG would continue to act as a catalyst for nation-building for years to come.
He said the prompt servicing of shareholders’ loan with accelerated repayments did not only demonstrate NLNG’s creditworthiness, it had also reiterated its robust financial position.
NLNG has generated revenues of more than US$25bn to the Federal government of Nigeria comprising Dividends of circa US$17bn and taxes of US$7.2bn.
