NLNG to sign agreement on guaranteed feedstock supply for Train 7 project




 
Tony Attah, managing director, Nigerian Liquefied Natural Gas Limited (NLNG), says the company will sign agreements for the supply of gas feedstock for the $7 billion Train 7 project.

Attah made this remark on the sidelines of the Gastech conference and exhibition in Barcelona, Spain.

According to him, the Train 7 project already has sales purchase agreements (SPAs) in place, with Shell, Total and Eni committed to ensuring a steady supply of gas feedstock.

“In terms of volume off-takers for Train 7, we are not struggling because we have guaranteed market for it,” he said.

“All the volumes anticipated for Train 7 would be coming from our shareholders gas suppliers.

“We are analysing data books on how much gas would be needed and to know where all the supplies will be coming from. In the next couple of weeks, we will sign off that agreement.

The NLNG MD said the final investment decision (FID) can only be taken on completion of the dual front-end engineering design (FEED) which was awarded in July to the B7 JV and SCD JV consortium.

The B7 JV consortium is comprised of KBR Inc., a US company, Technip of France and Japan Gas Corporation, the joint venture partners that built the existing six trains, while the SCD JV Consortium, made up of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea.

Attah said a “definite funding strategy of mixed financing model with multiple inflows” will be deployed for the project.

The NLNG $7 billion Train 7 project had been dormant for over eight years as the project owners, Shell, Total, Eni and the Nigerian National Petroleum Corporation (NNPC) had battled over financing options and insecurities related to the availability of gas feedstock.

If FID is taken on Train 7 in Q4 2018, production at the $15 billion Bonny LNG plant will increase from 22 million metric tonnes per year to 30 million MT/year.


TheCable