Nigeria LNG (NLNG) awarded an engineering, procurement, and construction contract worth over $4 billion to the Saipem-led SCD joint venture (JV) for Nigeria LNG’s Train 7 project on the Bonny Island LNG complex in Nigeria.
Saipem has a 60% share in the JV, which includes Daewoo E&C and Chiyoda Corporation, and said its share amounts to around $2.7 billion.
The award follows the letter of intent signed in September 2019. The NLNG Train 7 Project comprises the construction of a complete LNG train and an additional liquefaction unit with a total capacity of approximately 8 mtpa, plus other associated utilities and infrastructures.
The expansion project, which would bring total capacity to 30 mtpa, will include a liquefaction unit, an 84,200-m3 storage tank, a 36,000-m3 condensate tank, and three gas turbine generators. It will be the latest in several expansion projects the Bonny Island plant has undergone since it began commercial operation in 1999.
Train 7 is scheduled for commissioning by 2024.
“The investment decision by Nigeria LNG Limited, which includes several important energy companies, demonstrates that natural gas, in whose value chain Saipem has a recognized leadership, will be pivotal to the energy transition,” said Saipem’s chief executive Stefano Cao. “The award of this contract contributes to increase the portion of non-oil-related backlog and confirms the overcoming of the link between Saipem’s share value and oil price”.