NLNG to sign $1bn Train 7 project local content plan

The Nigerian Content Development and Monitoring Board and the Nigeria LNG Limited will sign the Nigerian content plan for the NLNG’s Train 7 project, estimated to cost $1bn.

The Executive Secretary, NCDMB, Mr Simbi Wabote, and the Managing Director, NLNG, Mr Tony Attah, met at the board’s headquarters in Yenagoa, Bayelsa State, on Thursday and finalised arrangements for the signing ceremony in Abuja, according to a statement.

The Train 7 project is expected to ramp up NLNG’s production capacity by 35 per cent from 22 million tonnes per annum to 30 MTPA.

According to the NCDMB, the Nigerian content plan sets out the work scopes to be executed in-country in each project, based on the provisions of the Nigerian Content Act and existing capacities.

It said the document would form the operating guide for project execution and monitoring.

“It would also aid the maximisation of Nigerian content deliverables in the project, by giving first consideration to indigenous goods, services and human resources, as well as opportunities to Nigerian companies,” the board added.

The NCDMB said under the Nigerian content plan for Train 7, it introduced a provision that would ensure that “a lead engineering, procurement and construction bidder that has built capacity in-country is not disadvantaged with regards to cost.”

According to the statement, the overall scope of work on the Train 7 project includes in-country and out-of-country work, including design, engineering, procurement, expediting, transportation, management, construction and installation.

It said, “The timely finalisation of the NCP is a key outcome of the Service Level Agreement the board signed with the NLNG in May 2017. The SLA committed the two organisations to timely approvals and compliance with the Nigerian Content.

“The scheduled signing of the NCP is expected to enable timeous execution of other activities that would culminate to the planned issuing of tenders in the third quarter of 2019.”

The contract for the Front End Engineering Design of the Train 7 project was awarded to two consortia in July 2018.

The Manager, Corporate Communications and Public Affairs, NLNG, Mr Andy Odeh, told our correspondent earlier this month that the consortia continued to make excellent progress as the design programmes were being executed on schedule and in line with NLNG’s demand for the highest standards of safety and quality.

According to him, the FEED work is expected to be completed by the second quarter of 2019.

He said, “The NLNG is fully focused on achieving other pre-conditions, which will eventually lead to Final Investment Decision and the success of the project.”

Odeh said after FID on the Train 7 project, the construction period would last approximately four to five years.