The execution of the Nigeria Liquefied Natural Gas (NLNG) Train 7 project will create over 40,000 direct and indirect jobs, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, has said.
He stated this on Wednesday in Abuja during the signing of the Letter of Intent (LoI) for the Train-7 Engineering, Procurement and Construction (EPC) Contract between NLNG and the preferred consortium – SCD, which is constituted by three entities – Saipem, Chiyoda and Daewoo.
The Managing Director of NLNG, Engr. Tony Attah said at the event ”that Train-7 will move from Front End Engineering Design (FEED) to detailed design, construction, commission and delivery and this phase will attract almost $7bn with an addition of the upstream scope of $10bn which will boost the foreign direct investment profile of Nigeria.”
He pledged the company’s commitment to achieving the project within four to five-year period and hoped that it would sign the Final Investment Decision (FID) by the end of October 2019.
Dwelling further on the opportunities, Wabote said “the NLNG Train-7 will deliver 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 our resolve to push beyond the boundary of limitations.”
The schedule of the NOGICD Act set the minimum engineering man-hours for FEED and Detailed Engineering on LNG Facility at 50 percent.
He stated further that the benefits of the Train 7 project will extend to site civil works on roads, piling, and jetties, 100 per cent local procurement of all LV and HV cables, non-cryogenic valves, protective paints and coatings, sacrificial anodes and many other direct procurements from our local manufacturing plants.
The target, according to the Executive Secretary, is to assemble over 70 per cent of all non-cryogenic pumps and control valves in-country, while other spin-off opportunities include logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage and many more.
He confirmed that the Minister of State for Petroleum Resources, Chief Timipre Sylva, has charged stakeholders connected with the NLNG Train-7 project to fast track actions related to it.
According to him, “the Minister has this project as one of his focus areas to put an end to the drought of FID’s in the oil and gas industry in the last few years”.
Apart from the job opportunities and the accruable revenues from this multi-billion dollar Train-7 project, the Minister also sees the additional tonnage of LPG to be produced from Train-7 as a key benefit to reduce importation of LPG into the country, he added.
”He is also excited that Train-7 project attracts other upstream gas supply projects required to keep the LNG train busy. The project opens up other development opportunities for some gas fields in the shallow and deep offshore acreages such as HI, HA, HK, and Opoukunou-Tuomo fields” the local content boss stated.
Wabote charged the SCD consortium to fully implement the agreed Nigerian Content levels as contained in the approved Nigerian Content Plan for Train-7 project, covering engineering, fabrication, civil works, local procurement, project services, logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, human capacity development and jobs.
As part of his remarks, MD of NLNG, Engr. Tony Attah, commended NCDMB for completing its review of the commercial evaluation report of Train 7 in 48 hours, noting that it took the natural gas company about three months to produce the commercial evaluation summary.
While confirming that NCDMB had kept to its commitment of reducing its approval cycle on projects, the NLNG boss also thanked the Federal Government under the leadership of President Muhammadu Buhari and the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva, for the support they provide for the project.
He lauded the three entities that constituted the SCD consortium – Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea for delivering the FEED and participating in the EPC tendering.
He confirmed that the issuance of the LoI moved the NLNG even closer to the Final Investment Decision (FID) as the ceremony is the declaration of intent and commitment to the contractors who will go forward with the project. Train 7 will move the company from 22-million-tons capacity from its six trains currently to 30 million tons, essentially about 35 per cent increase in capacity.