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.