The Nigeria Liquefied Natural Gas (NLNG) Ltd., says its ongoing plans to reach a Final Investment Decision (FID) on its Train-7 project by fourth quarter 2019 will be the biggest game changer in gas project and make Nigeria the third World largest gas exporter.
Nigeria LNG, Manager, Nigerian Content, Charles Epelle, said this while presenting Train 7 Project Status Update at the just concluded 2019 Nigerian Oil and Gas Conference in Abuja.
Showcasing the Next Frontier of Catalytic Projects for new Business Opportunities with great Economic Impact , he noted that Nigeria is presently the fourth exporter of gas in the world. The NLNG has six operational trains (gas plants). The first train was built in 1989 but by 2007 till date, plans to build Trains 7 and 8 were shelved.
The six trains have a combined capacity to produce 22 metric tonnes per annum (mtpa) of Liquefied Natural Gas (LNG).
However, plans to invest seven billion dollars on the Train-7 project would expand its production capacity to 30 mtpa making Nigeria the 3rd largest exporter of gas in the World after Qatar and Australia.
He noted that the economic Impact of NLNG Train 7 is enormous which include LNG design and construction Technology Transfer to Nigerians, Measurable returns on investment to shareholder, leading to additional confidence for more investments.- dividends, CITA, etc., Increased capacity and capability of Nigerian Manufacturers and Service providers to meet international standards – vendor development, upgrades, and considerable collaboration with partners for future projects.
Other benefits are New businesses and opportunities for the Operations and Management of the existing and delivered projects, Sustained development in the value chain and value networks – Gas supplies, community empowerment, etc.
Epelle said the gas produced in Nigeria was world-class, adding that the NLNG had built a reputation of reliability in its gas supplies around the world.
He said the country had 23 NLNG carriers which had sailed more than 4,000 cargoes making it the largest in Africa.
According to the presentation the Train 7 project is projected to provide direct, indirect and induced employment for over 10,000 persons.
Also key Key Areas of Opportunities in T 7 include 10,000 personnel at site (at peak) on Bonny Island- > 80% Nigerians, 75,000 m3 Concrete, 150 Piles, 25,000 Te Structural Steel, 150,000m Piping, 10,000 Valves, 100 Heat Exchangers of several sizes, 1,000,000m Electrical Cables, 100000 bottles of Welding and inert Gases Cranage, Equipment leasing, professional services, etc
He explained that the expected job explosion from Train 7 is banked on the Nigerian Content Plan, which provides for 100 per cent engineering of all non-cryogenic areas in-country. The total in-country engineering man hours is set at 55 per cent, which exceeds the minimum level stipulated in the NOGICD Act, in line with the Board’s resolve to push beyond the boundary of limitations, he added.
He said that the Train-7 scope would deliver 100 per cent in-country fabrication of the Condensate Stabilisation Unit, pipe racks, flare system, and non-cryogenic vessels. Site civil works on roads, piling and jetties will keep local businesses occupied.
He added: “It will also provide great opportunities for utilisation of local goods and services in addition to enhancing and developing new capacities and capabilities for the local supply chain.
There will be 100 per cent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, and all sacrifice anodes. Seventy per cent of all non-cryogenic pumps and control valves will be assembled in-country.” Other spin-off opportunities would include logistics, equipment leasing, insurance, hotels, office supplies, aviation and haulage.
He pointed out that the increased number of NLNG Trains would also provide huge business opportunities for local businesses to build capabilities in the maintenance of LNG plants, especially in the area of cryogenics.
The project would also catalyse other upstream gas supply projects required to keep the LNG train busy and make stranded gas fields in the shallow and deep offshore in the area economical.
Update on Train 7 Status indicates Nearshore Geotech Survey – 100 percent and SAFELY completed with over 50K Nigerian Manhours.
On the Pre-Load and Site Preparation Plant Interface Works: Plant permanent Fence Construction is 70 percent completed, New Drainage Construction is 75 percent, Site Reinstatement is 30percent while Settlement Monitoring is ongoing.
The Managing Director of NLNG , Tony Attah had already confirmed that the full value network of the Train 7 project was about $12bn, including the net cost of the project, estimated in the region of $4bn to $5 billion and a similar additional spend at its operational base in Bonny, Rivers State.
“It is also about the upstream development which is the real gas that will come to us. That also is a huge investment of $5 to $6 billion. So, potentially, the full value network is almost $12 billion.”
He further highlighted that the expected increase in the production capacity of LNG “will reinforce the company’s comparative and competitive advantage in the global LNG market while also increasing the country’s revenue and foreign investment profile. This is in addition to moving the nation’s economy from being oil-based to becoming a gas-based economy to be reckoned with globally. We are here to enable gas. Nigeria has ridden on the back of oil for more than 50 years; it is now time to fly on the wings of gas.”
It could be recalled that the Nigerian Content Development and Monitoring Board, NCDMB and the Nigeria LNG Limited, NLNG, signed the Nigerian Content Plan, NCP for the NLNG Train 7 project, taking a big step towards kick- starting the huge gas project that would create a flurry of activities in the oil and gas sector and contribute immensely to the nation’s economy.
This underscored that the Nigerian Content Plan for Train 7 contained clear and robust Local Content provisions that are significantly higher than the previous NLNG projects. “NCDMB and NLNG are fully aligned to collaborate during the operationalisation of the plan.
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