NNPC, stakeholders sign NLNG Train-7 design contract

The Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni have signed the Front-End Engineering Design (FEED) contract of Train 7 of the Nigeria Liquefied Natural Gas Ltd (NLNG).

According an NNPC statement the event which took place yesterday in London witnessed the commemoration of the successful repayment of $5.45 billion shareholders loan for Trains 1-6 by the NLNG Shareholders.

The NLNG T7 expansion project aims to increase NLNG production capacity from 22 metric tonnes per annum (MPTA) to over 30 MTPA by the debottlenecking of T1-6 and the addition of train -T7 and associated infrastructure at an estimated cost of US$4.3bn. The target Final Investment Decision (FID) date is fourth quarter 2018.

Speaking at the occasion, NNPC Group Managing Director, Dr. Maikanti Baru, expressed the corporation’s readiness to support the Federal Government’s aspirations to actualizing Train-7 of project.

Jointly owned by the NNPC (49%), Shell (25.6%), Total (15%) and Eni (10.4%), NLNG’s journey started in 1999 with the commissioning of Train 2 ahead of Train 1 which was commissioned in 2000. The company grew to a Six Train facility with the commissioning of Train 6 in 2007.

The company sourced $4.043bn from its shareholders in their respective shareholding proportions to partly fund the construction of Trains 1-6.

The NNPC GMD said as 49 per cent shareholder in NLNG, NNPC had immensely contributed to the success of the company over the years, supporting equity participation and contribution to shareholders loan.

Dr. Baru described the company as a source of pride to the Nigeria, the host communities, shareholders, financial markets and several other stakeholders.

The GMD said NLNG has generated revenues of more than $25bn to the Federal Government comprising dividends of circa $17bn and taxes of $7.2bn.