Commodities Construction Development FDI FID Gas Infrastructure Natural Resources Nigeria

Nigeria’s LNG capacity to rise following the signing of an EPC for the construction of Train 7 Project

The Nigeria Liquefied Natural Gas (NLNG) Company Limited, which is partly owned by the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation has signed the engineering, procurement, and construction (EPC) contract for construction of Train 7 Project.

The signing of the EPC Contracts with the SCD JV Consortium made of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, is believed to have triggered the commencement of the Detail Design and Construction phase of the project which is expected to increase the capacity of NLNG’s current six-train plant by 35% from the present 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.

The search for an EPC contractor

The search for an EPC contractor for the construction of Train 7 Project began in July 2018 with the signing of Front End Engineering Design (FEED) with two consortia in a Dual FEED Process. The consortia, B7 JV Consortium, and SCD JV Consortium participated in the Dual FEED Process which led to their bidding to construct the train.

In September last year, NLNG issued a Letter of Intent for the EPC Contracts of the project to SCD JV Consortium. The Letter expresses the intention to award the main EPC Contract, subject to the signing of the terms, to the preferred bidder after a contracting process that has been transparent, and in full compliance with all applicable laws and good industry practices.

NLNG took the Final Investment Decision (FID) on 27 December 2019, which was followed by the approval of the Nigerian Content Compliance Certificate (NCCC) and Approved Vendors Lists (AVLs) by Nigerian Content Development and Monitoring Board (NCDMB) in April this year.

Present during the signing of the EPC contract, the Group Managing Director of NNPC Mr. Mele Kyari, expressed satisfaction to see that the contracts have been finally awarded and fully signed.

The Project is expected to create about 10,000 new jobs during the construction stage, and on completion, help to further diversify the revenue portfolio of the Federal Government and increase its tax base.

Source: Construction Review Online

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