NNPC proceeds with Train 7 project

After several meetings, the shareholders of the Nigeria LNG Limited have given their nods for the company to proceed with its Train 7 project.

The Train 7 project, which has been delayed for over 10 years, aims to increase the company’s production capacity from 22 metric tonnes per annum to about 30 MTPA, and will form part of the investment of over $10billion, including the upstream scope of the LNG value chain.

The NLNG is jointly owned by the Federal Government, represented by the Nigerian National Petroleum Corporation (49%), and three international oil companies, namely Shell (25.6%), Total (15%) and Eni (10.4%).

What it means: The decision allows the expansion to increase the capacity of NLNG’s six-train plant from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA. This is with the award of contracts for the engineering, procurement and construction activities to follow the closure of bank and Export Credit Agency (ECA) financing, and the finalization of some key supporting commercial agreements expected in early 2020. The actualisation of the Train 7 Project comes as NLNG celebrates 30 years of its incorporation and 20 years of safe and reliable operations since exporting its first LNG cargo in 1999.

The Group Managing Director, NNPC, Mele Kyari, said, “We have decided to proceed with Train 7 project today. It is an important day. It is a show of confidence that investors can put money into this project.”

In a statement issued by the company and obtained by Nairametrics, Managing Director, NLNG, Tony Attah, noted that the company had been bringing huge values to Nigeria through taxes and dividends.

He said, “Train 7 is the crux of a growth agenda which will ensure the Company’s position as the 5th major supplier of global LNG is maintained, increasing value to its shareholders and other stakeholders, as well as further reducing the gas that would otherwise have been flared, in fulfillment of its vision of ‘being a global company, helping to build a better Nigeria.”

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