Saipem-led JV nabs $4 billion Nigeria LNG Train 7 contract

A joint venture led by Italy’s Saipem has secured a $4 billion contract for Nigeria LNG’s seventh production unit at its Bonny Island plant.

Saipem has a 60 per cent stake in the venture that includes South Korea’s Daewoo E&C and Chiyoda of Japan.

The engineering, procurement and construction deal follows the signing of a letter of intent in September 2019.

Nigeria LNG said on Wednesday that all conditions for an FID to build the train have been met, including financing.

NLNG is a venture compromising of the Nigerian National Petroleum Corporation (NNPC 49%), Shell (25.6%), Total (15%) and ENI (10.4%).

Shell said in a separate statement that Nigeria LNG would fund the new processing unit without shareholder loans or shareholder equity requirements.

The NLNG Train 7 project consists of the construction of one complete LNG train and one additional liquefaction unit. The project also includes other associated utilities and infrastructures.

The new unit will add around 8 mtpa of capacity to the 22 mtpa Bonny Island facility.

The Saipem-led joint venture will start construction once the situation with Covid-19 coronavirus pandemic has stabilised, according to Shell.

Most Popular

Shell adds another LNG carrier to its fleet

A unit of UK-based LNG giant Shell has added another chartered liquefied natural gas carrier to its fleet.

CMA CGM’s LNG-powered giant floated out in China

China’s Hudong-Zhonghua has launched the third in a new series of 24,000-teu LNG dual-fuel containerships for French shipping giant CMA CGM.

Venture Global gets OK to introduce gas to final Plaquemines LNG block

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce natural gas to the 18th and final liquefaction block at the Plaquemines LNG terminal in Louisiana as part of the plant’s commissioning process.

More News Like This

Nigeria LNG seals long-term gas supply deals

LNG producer Nigeria LNG, a joint venture of NNPC, Shell, TotalEnergies, and Eni, has signed six long-term gas agreements to secure supplies for its Bonny Island plant, including the terminal's expansion.

Chiyoda scores contract for third Hibiki LNG tank

Japanese engineering firm Chiyoda has secured a contract from compatriot Saibu Gas to build the third liquefied natural gas (LNG) storage tank at the latter's Hibiki regasification terminal in Kitakyushu.

Inpex launches Abadi LNG FEED work

Japan's Inpex has launched the front-end engineering design (FEED) work for the Abadi LNG project in Indonesia. The contractors include Technip Energies, JGC, Saipem, Tripatra, McDermott, and Worley.

Nigeria’s NNPC and Zuid Energies ink CNG, LNG pact

A unit of state-run Nigerian National Petroleum Corp has entered into a joint venture agreement with Zuid Energies to build a CNG and LNG plant in Ajaokuta.