The Nigerian National Petroleum Corporation (NNPC) and its investment partners, Shell, Total and ENI, have signed $10 billion deal for the construction of Train 7 of the Nigeria Liquefied Natural Gas (NLNG).
The project signing was announced on Friday, December 27th, 2019, at the NLNG Headquarters Annex in Abuja.
According to reports, the NLNG Train 7 project would rake $20 billion in revenue into the federal government account and create 10,000 direct and 40,000 indirect jobs.
Mele Kyari, NNPC Group Managing Director, said the investment was a vote of confidence in the Nigerian economy as a prime investment destination by the International Oil Companies.
It also signifies that there is a renewed confidence by our international investors, particularly our partners who we have known for a long time, to still agree to put money back into this country to move this project forward”, Kyari stated.
In a statement issued by Samson Makoji, Ag. Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, Kyari describing the final investment decision would help open a floodgate of opportunities for more of such investments which could boost the economy and create prosperity for the over 200 million Nigerians who are the shareholders of the corporation.
“We need to do more, and we can do more. This FID has opened the gateway for doing more great things. We will work with our partners to bring in more projects that will add value to this country in the Upstream, and particularly in the gas processing sector”, he said.
What NLNG Train 7 project is all about?
Nigeria, Africa’s biggest economy, accounts for over 50% of current LNG production capacity on the continent, contributing about 6% of global LNG exports. With this investment, the Train 7 is expected to boost the production capacity of the current six-train NLNG by 35% from 22Million Tonnes Per Annum (MTPA) to 30MTPA and increase its competitiveness in the global LNG market.
NLNG is an incorporated Joint-Venture owned by four Shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International N.A. N.V. S.àr.l (10.4%).
According to NLNG, here are some of the benefits of the Train 7 project:
- Train 7 will increase gas supply in the upstream sector, opening up new development opportunities in the industry.
- Over $10 billion is expected to be invested in Train 7 and the upstream scope of the LNG value chain, thereby boosting the much needed Foreign Direct Investment (FDI) profile of Nigeria. Train 7 will also boost foreign investor’s confidence in Nigeria.
- The Project is anticipated to create about 10,000 new jobs during the construction stage, and on completion, help to further diversify the revenue portfolio of the Federal Government and increase its tax base.
- The Project will also support the development of local engineering and fabrication capacity.