SAN FRANCISCO, September 12, (THEWILL) – A joint venture consortium comprising Saipem, Chiyoda and Daewoo (SCD) have emerged the preferred bidder for the $10 billion Nigeria Liquefied Natural Gas (NLNG) Train 7 mega gas project with the Nigerian National Petroleum Corporation (NNPC) insisting on the October target for the final investment decision on plant.
The SCD consortium, the NLNG said, would be undertaking the engineering, procurement and construction of the project.
The Bonny Island based gas giant announced the preferred bidder in Abuja at the signing of Letter of Intent for the NLNG Train 7 EPC contract.
The signing signifies the endorsement of a legally binding interim agreement outlining the main points of the Train 7 project by the shareholders, which is mandatory before taking the final investment decision.
Speaking at the event, Group Managing Director of the NNPC, Mallam Mele Kyari, who was represented by the corporation’s General Manager, New LNG, Engr. Ahmed Dikko, said NNPC is keen on seeing the take off of the project.
“Before us today is the signing of the letter of intent for the Train 7 project. By October 31, 2019, we will all gather together again to sign the dotted lines for the final investment decision of the Train 7 project. This is, indeed, the wish of NNPC as a shareholder, and I will like to reaffirm to you all our support to carry out all the realignment to make the project a reality,” the GMD stated.
He urged the other shareholders to start preparing for Trains 8, 9 and 10.
Earlier, the Managing Director of NLNG, Engr. Tony Attah, said the Train 7 project was expected to increase the NLNG production capacity by 35 per cent from 22 million tonnes per annum (MTPA) to around 30MTPA, adding that the project would attract foreign direct investment of well over $10 billion, including the upstream scope of the LNG value chain.
The NLNG is owned by four shareholders – the Federal Government of Nigeria, represented by the NNPC with 49 per cent; Shell Gas B.V with 25.6 per cent; Total Gaz Electricite Holdings, France with 15 per cent; and ENI International N.A.N.V.S. ar.l with 10.4 per cent.
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