Global energy company Shell has announced that all conditions for its Final Investment Decision on a new liquefied natural gas processing unit at Nigeria LNG (NLNG) have now been met.
All the organisations participating in the project have announced their formal commitments to provide funding required for the project.
In addition, NLNG, a joint venture of the Federal Government of Nigeria, (49%), Shell Gas (25.6%), Total Gaz Electricite Holdings France (15%), and Eni International has announced awards of engineering, procurement and construction contracts.
The project will increase the capacity of NLNG’s current six-train plant by 35% from 22 million tonnes per annum (MTPA) to 30 MTPA.
Construction of Train 7 at Bonny Island LNG facility will bolster NLNG’s contribution to the development of the country through generating revenues for the Nigerian government and delivering key natural gas products for domestic use.
The construction of Train is expected to kickstart once the situation with COVID-19 has stabilised.
Maarten Westelaar, director of integrated gas and new energies at Shell, said: “While remaining mindful of prevailing macro-economic challenges, Shell continues to see NLNG as a great resource that can deliver value to the people of Nigeria and investors alike. This decision is consistent with our long-term strategy and our disciplined approach to capital investment.
“Natural gas is a core component of our strategy to provide more and cleaner energy solutions. With global LNG demand expected to double by 2040, the expansion of the NLNG Bonny Island facility is crucial in helping Shell meet the world’s growing energy needs.”
Osagie Okunbor, country chair of Shell in Nigeria, adds: ‘‘We are happy with the progress NLNG has made over the years and its enormous contributions to the Nigerian economy. The EPC awards for Train 7 is good news for Nigeria with the potential to bring more export revenues, unlock new projects, and attract foreign direct investments, in addition to transforming the economy of the Niger Delta and Nigeria as whole.”