The engineering, procurement and construction of the planned $4.3bn Nigeria LNG Limited Train 7 plant will be done in-country by mostly indigenous companies, the Nigerian Content Development and Monitoring Board has said.
According to the Executive Secretary, NCDMB, Simbi Wabote, the fabrication of pressure vessels, pipes, flare stack and other opportunities related to the Train 7 project will be domiciled in Nigeria. Wabote, who stated this at a public workshop on the Nigerian content aspect of the NLNG Train 7 in Abuja on Tuesday, warned that the era of building such projects in modules abroad to be shipped and coupled in the country was over.
He said, “I know how we insist on some of these local content requirements from the international oil companies. If you leave them alone, they will build this Train 7 in modules and then ship them from England or the Netherlands, and then take them straight to Bonny and couple them.
“That is not going to happen. We are going to build the Train 7 in-country, because we have the capacity.” The NLNG is a private limited liability company owned by the Federal Government, represented by the Nigerian National Petroleum Corporation, with 49 per cent stake; Shell, 25.6 per cent; Total, 15 per cent; and Eni, 10.4 per cent.
The company recently announced that it was shopping for $7bn to expand its operations. The expansion project will see to the construction of an extra gas processing train called Train 7 and investment in upstream gas that will ensure sustainable feed gas supply to its existing Trains 1 to 6. The target Final Investment Decision date is the fourth quarter of this year.
The Managing Director, NLNG, Tony Attah, said the company’s planned Train 7 project, which would increase production output of its plant by 35 per cent from 22 million metric tonnes per annum to 30 MTPA, would lift Foreign Direct Investment in the country.
The company, in a presentation on an overview of the Train 7 project, noted that opportunities existed for in-country fabrication of pressure vessels, pipes and flare stack, among others. In the area of procurement of equipment and materials, the company said in-country opportunities existed for indigenous firms to supply cement, fuel, lubricants and vehicles, including earth moving equipment.