NLNG embarks on a US$10b gas plant expansion project to increase gas production

NIGERIA – The Nigerian Liquefied Natural Gas Company (NLNG) has started plans to construct its planned gas expansion project popularly known as Train 7.

The announcement of SCD group as the preferred bidder to construct the $10bn gas expansion project early this month is a sign that the multi-billion gas producer is moving closer to actualizing the project.

 SCD Group is a joint venture consortium comprising Saipem, Chiyoda and Daewoo. The consortium would be undertaking the Engineering, Procurement and Construction project for the Train 7.

The multi-billion dollar gas company announced the awarding of the tender to SCD in Abuja during the signing of the Letter of Intent for the NLNG Train 7 EPC contract.

Tony Attah, NLNG’s Managing Director, said the Letter of Intent was a precursor to the inauguration of the project.

According to him, the Final Investment Decision for the Train 7 project would be signed in October.

The Train 7 project is expected to boost NLNG’s capacity from 22 million tonnes to 30 million tonnes.

It would also boost Nigeria’s Liquefied Petroleum Gas production and help to reduce the import of LPG.

Mr Attah said that the Train 7 was the company’s sure way to attaining the 35 per cent increase in its production capacity, from 22 million tonnes per annum to 30 MTPA.

According to Attah the NLNG Train 7 project is expected to boost the Foreign Direct Investment profile of the country as it is going to attract an investment of over $7bn at its construction phase.

The project is also expected to create about 10,000 jobs during the construction stage.

Fabrication yards are also expect to immensely benefit from the Train 7 project which is estimated to require over 70,000 tonnes of in-country fabrication, covering condensate stabilisation units, tanks, pipe-racks, flare system, non-cryogenic vessels, and many other spools and fittings.

At its peak, the project expected to provide over 40,000 direct jobs and over 100,000 others in indirect and induced jobs.

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