President Muhammadu Buhari on Tuesday flagged off the construction of Nigeria LNG Limited’s (NLNG) Train 7 project during the groundbreaking ceremony at the company’s plant site on Bonny Island, Rivers State.
The project is expected to increase NLNG’s current six-train plant capacity by about 35% from an extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA.
The foundation stone was laid on behalf of Buhari, who flagged the project virtually, by the minister of state for petroleum resources, Timipre Sylva, supported by Rivers State Governor Nyesom Wike, represented by Deputy Governor Ipalibo Banigo; the Amanyanabo of Grand Bonny Kingdom, His Majesty, King Edward Asimini William Dappa Pepple III, Perekule XI.
Others present include group managing director of Nigerian National Petroleum Corporation (NNPC), Mele Kyari; chairman, NLNG board of directors, Edmund Daukoru; NLNG’s managing director/CEO, Tony Attah; and NLNG’s deputy managing director, Sadeeq Mai-Bornu among others.
Other dignitaries who graced the event are the executive secretary of Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote; NLNG’s board of directors; NNPC’s board of directors; senators, members of the company’s senior management team and other special guests.
In his address, Buhari said the groundbreaking was an important milestone in the history of Nigeria’s oil and gas industry, adding that “the story of Nigeria LNG is one that I have been so passionately associated with during the formative years of the NLNG project. It has transformed from a project over the years to a very successful company.
“This groundbreaking ceremony to herald the Train 7 project construction has afforded me the opportunity to congratulate NLNG and its Company’s shareholders – NNPC, Shell, Total, and Eni – for proving that a Nigerian company can operate a world-class business safely, profitably, and responsibly. Clearly, you have set the stage upon which Nigeria’s vast gas resources will continue to grow well into the future.”
He added, “I am proud that NLNG, as the pioneer LNG company in Nigeria, has conscientiously proven the viability of the gas sector over the years, currently contributing about one percent to our country’s GDP. NLNG has generated $114 billion in revenues over the years, paid $9 billion in taxes; $18 billion in dividends to the Federal Government and $15 billion in feed gas purchase. These are commendable accomplishments by the company’s 100 percent Nigerian Management Team.
“With this level of performance, I can only hope that the company continues to grow, starting with this Train 7 project, but also positioning Nigeria to thrive through the energy transition. I hereby urge the Board of Directors, Management and Staff of Nigeria LNG, the Host Communities, the Rivers State Government and Agencies of the Federal Government to continue to collaborate to ensure completion and eventual commissioning of the Train 7 project safely and on time, so that Train 8 can then start.”
The company took the final investment decision (FID) for the project in December 2019. It proceeded to sign the engineering, procurement, and construction (EPC) contracts with the SCD JV Consortium, comprising affiliates of Saipem, Chiyoda, and Daewoo, on May 13 2020.
Train 7 Project is in fulfilment of NLNG’s vision of “being a global Company, helping to build a better Nigeria.” The project, upon completion, will support the Federal Government’s drive to generate more revenue from Nigeria’s proven gas reserves and further reduce gas flaring in the country’s upstream oil and gas industry.
The project is scheduled to span approximately five years.
