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NLNG Train 7 Project

Introduction

The Nigeria LNG Limited (NLNG) awarded the contracts for Front End Engineering Design (FEED) of its planned plant expansion project, Train 7, to B7 JV Consortium and SCD JV Consortium in August 2018, inching closer to realising its expansion goals of increasing liquefied natural gas production output from 22 Million Tonnes Per Annum to 30 MTPA. NLNG is targeting to deliver the first Liquefied Natural Gas (LNG) consignments from the Train 7 plant between 2023 and 2024.

The consortia, B7 JV Consortium comprising American company KBR Inc., Technip of France and Japan Gas Corporation and SCD JV Consortium, made up of Saipem of Italy, Japan’s Chiyoda and Daewoo of South Korea will participate in the Dual FEED Process and produce a Basic Design Engineering Package (BDEP) and their bids to construct the train.

The BDEP, along with the Engineering, Procurement and Construction (EPC) pricing would be submitted by both consortia in May 2018 to allow Nigeria LNG Limited take Final Investment Decision (FID) by Q3/Q4 2019. After bid evaluation, EPC Contract would be awarded to the successful consortium.

NLNG requires 3.5 Bscf/d for the existing Trains 1 – 6 and will need 5.5 Bscf/d by 2022 to accommodate the requirements of Train 7. At the moment, the three major suppliers of gas to NLNG are Shell, TOTAL and ENI, who are also the shareholders of NLNG, along with NNPC. The Gbaran field, which was developed on the back of trains 4, 5 and 6, and operated by Shell currently supplies 40% of the gas requirements of NLNG.

NLNG would also procure seven or eight new vessels which would be used to deliver the new LNG volumes from the new plant to destination markets.

In November 1995, the First FID to build an LNG plant in Finima, Bonny Island was taken. This was followed by the award of EPC contract to a consortium of engineering firms comprised Technip, Snamprogetti, M.W. Kellogg and JGC  (TSKJ) for a plant of two trains, Trains 1 and 2.

Thereafter, the FID to develop Train 3 and the plant’s Natural Gas Liquids (NGLs) Handling Unit was taken in February 1999.

After Trains 1 and 2 became operational, FID for the NLNG Plus Project, comprising Trains 4 and 5, was taken in March 2002 and soon after, the construction of Train 6, dubbed NLNG Six Project, commenced with FID in 2004.

NLNG was incorporated in 1989 and is owned by four Shareholders, namely the Federal Government of Nigeria, represented by NNPC (49%), Shell Gas B.V. (25.6%), Total Gaz Electricite Holdings France (15%) and Eni International (10.4%).

Project Scope of Work

The project consists of 2 main scopes:

1. New Liquefaction Train, similar to existing Train 6, with capacity of 4mtpa:

  • Driven by General Electric Frame-7 Gas Turbines
  • Amine Unit for acid gas (CO2) removal
  • Malsieve unit for dehydration
  • Absorption bed for mercury removal
  • Scrub Column for natural gas liquids (NGLs) removal
  • A fractionation Unit

2. New Common Liquefaction Unit, which takes FEED gas from T4, 5 and 6, and new Train 7. No pretreatment or NGL extraction required. 4 mtpa capacity.

Opportunities for Nigerian Companies

Some of the opportunities available for Nigerian companies during the EPC phase of the project, expected to commence in late 2019 are:

  1. Engineering: in-country portion of detailed engineering in the offices (COREN Registered) of the EPC contractor or its nominated subcontractor
  2. Procurement: procurement centre/office in Nigeria, procurement items from Nigeria
  3. Construction: mostly on Bonny Island, construction subcontracting
  4. Logistics: personnel transport; equipment  and material transport, and third party services
  5. Other services: finance, insurance, training, surveying, etc.

Some of the procurement opportunities for Nigerian companies include:

In-country fabrication of:

  • Pressure vessels, pipe spools
  • Gratings, manhole covers, flare stack, communications mast, fencing, etc.
  • HVAC ducting and piping, etc.

In-country procurement of:

  • Dewatering pumps; process pumps; valves; mobile compressors; heat exchangers; gaskets; seals; paints; electric cables (HV, LV, LAN, etc); galvanized pipes and fittings; wire ropes; pipes; steel rods; etc
  • Aggregates, cement, fuels and lubricants
  • Vehicles and accessories and spares; heavy duty trucks and earth moving equipment; IT equipment

 

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