NLNG awards $10bn Train-7 EPC contract to Saipem, Daewoo, Chiyoda
– NLNG awards $10bn Train-7 EPC contract to Saipem, Daewoo, Chiyoda
The Nigeria Liquefied Natural Gas Company, NLNG has announced that SCD Joint Venture, JV consortium, comprising Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea, has emerged the preferred bidder for its liquefied natural gas train 7 project.
The announcement was made by Tony Attah, the managing director of the Nigeria LNG, at the letter of intent signing ceremony in Abuja. He noted that with the presentation of the letter of intent to the SCD JV Consortium, the group had been awarded the contract to undertake the engineering, procurement and construction, EPC, for the Train 7 project.
Attah further stated that with the issuance of the letter of intent, the NLNG was now closer to the signing of the final investment decision, FID, of the Train 7 project, which he disclosed would be attained before the end of October.
He disclosed that the company had concluded arrangements to ensure that after the signing of the FID, the project would be completed within four to five years, as this would be critical to it remaining competitive and profitable in the global market.
The NLNG chief executive explained that Train 7 is the company’s sure way to attaining the 35 per cent increase in its production capacity, from 22 million tonnes per annum, MTPA, to 30 MTPA.
He noted that at construction phase, the NLNG Train 7 project would attract an investment of over $7 billion; boost Foreign Direct Investment, FDI, profile of the country, and provide about 10,000 jobs during the construction stage.
He said, “With Train 7 on board our operation, we can consistently continue to deliver on our vision of being a global LNG company helping to build a better Nigeria. “We can only achieve this by sustaining our relevance in the global LNG market and in turn continue to contribute significantly to the economic base of the nation through the payment of our taxes and applicable levies; our Corporate Social Responsibility, CSR, initiatives; our LPG supply to the domestic market and our support for indigenous capacity development.”
Also speaking, Simbi Wabote, executive secretary of the Nigerian Content Development and Monitoring Board, NCDMB, informed the SCD JV Consortium that the Board expects full implementation of the agreed Nigerian Content levels as contained in the approved Nigerian Content Plan for the Train-7 project, covering engineering, fabrication, civil works, local procurement, project services, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, human capacity development, and jobs.