SCD Group wins $10bn NLNG Train 7 project


SCD Joint Venture (JV) Consortium comprising Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea has won the $10 billion Nigeria Liquefied Natural Gas’ (NLNG) Train 7 Project.

The project, which has been delayed for several years, will ramp up NLNG’s production by 35% to 30 million tonnes of LNG per year when operational.

It is also expected to create 40,000 direct and 100,000 indirect jobs.

The  Managing Director of the Nigeria LNG, Mr. Tony Attah made the disclosure in Abuja on Wednesday at the Letter of Intent signing ceremony.

According to him, with the presentation of the Letter of Intent to the preferred bidder, the group had been awarded the contract to undertake the Engineering, Procurement and Construction, EPC, for the Train 7 project.

Attah further stated that with the issuance of the Letter of Intent, the NLNG was now closer to the signing of the Final Investment Decision, FID, of the Train 7 project, in October.

He added that the company had concluded arrangements to ensure that after the signing of the FID, the project would be completed within four to five years, as this would be critical to it remaining competitive and profitable globally.

The NLNG chief executive explained that Train 7 was the company’s will increase its production capacity, from 22 million tonnes per annul , MTPA, to 30 MTPA.

He explained that at the construction phase, the NLNG Train 7 project would attract an investment of over $7 billion; provide about 10,000 jobs during the construction stage and boost Foreign Direct Investment, FDI, profile of the country.

He said, “With Train 7 on board our operation, we can consistently continue to deliver on our vision of being a global LNG company helping to build a better Nigeria.

“We can only achieve this by sustaining our relevance in the global LNG market and in turn continue to contribute significantly to the economic base of the nation through the payment of our taxes and applicable levies; our Corporate Social Responsibility, CSR, initiatives; our LPG supply to the domestic market and our support for indigenous capacity development.”

Also speaking, Executive Secretary of the Nigerian Content Development and Monitoring Board, NCDMB, Engineer Simbi Wabote, informed the SCD JV Consortium that the Board expects full implementation of the agreed Nigerian Content levels as contained in the approved Nigerian Content Plan for  the 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.

Wabote identified opportunities in the project for local businesses and investments to include the delivery of 100 per cent engineering of all non-cryogenic areas in-country, explaining that the total in-country engineering man hours is set at 55 per cent, exceeding the minimum level stipulated in the NOGICD Act.

He disclosed that on fabrication, the Train 7 scope will bring many of Nigeria’s fabrication yards roaring back into life with over 70,000 tonnes of in-country fabrication, covering condensate stabilization units, tanks, pipe-racks, flare system, non-cryogenic vessels, and many other spools and fittings.

The benefits, he explained, extends 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 procurement from our local manufacturing plants.

He said, “Those in the service industry are not left out with the target to assemble over 70 per cent of all non-cryogenic pumps and control valves in-country. Other spin-off opportunities include logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, and many more.

“The target job numbers are very exciting.  At its peak, the project will provide over 40,000 direct jobs and over 100,000 indirect and induced employment of over 100,000 workers.

“Beyond the project, there is also huge scope for local businesses to build capabilities in the maintenance of LNG plants especially in the area of cryogenics.”

In his goodwill message, Minister of State for Petroleum Resources, Mr. Timipre Sylva, noted that the project had been a long time coming, noting however, that the journey had been credible and thorough.