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.

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