Train-7 Project hits 52%, employs 8,300 persons
The ongoing construction of the $5 billion Train-7 project by Nigeria Liquefied Natural Gas (NLNG) on Bonny Island, Rivers State, has reached 52% completion and currently employs 8,300 Nigerians with diverse skill sets.
This update was provided during an engagement session between the management of Nigeria LNG Limited and the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Kesiye Wabote.
The meeting also included the signing of an agreement for the implementation of the Oil and Gas E-Marketplace, which will facilitate tender opportunities from Nigeria LNG Ltd in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Section 106 of the NOGICD Act defines the “Oil and Gas E-Market Place” as a virtual platform for buyers and sellers of goods and services in the oil and gas industry that allows for speedy and transparent transactions.”
Dr Mshelbila stated that the relationship between the NLNG and the NCDMB has been conscientiously nurtured over the years, with both parties striving ceaselessly to fulfil statutory obligations.
‘We recognise the role of the regulator and are happy you recognise that of the operator and the need for regular engagement.”
He acknowledged the crucial role played by the Board in the take-off of the Train-7 project and assured of the company’s resolve to stretch its local content practice beyond mere compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The Managing Director of Nigeria LNG Limited stated that the company is dedicated to participating in initiatives that will enhance domestic productivity and support economic diversification within the country.
“We cannot have a better Nigeria unless we develop the capacities of Nigerians,” Dr Mshelbila stated, stressing that the vision of his company is to be “a globally competitive LNG company, helping to build a better Nigeria.”
The Managing Director of Nigeria LNG Limited expressed concerns about the challenges the company is encountering in securing sufficient gas supply, which has led to under-production by its six plants, resulting in operating at less than 50 percent of their total installed capacity.
He remarked that feedgas to the NLNG plants comes mainly from some of its joint ventures (JV) partners, including, Shell Petroleum Development Company (SPDC) Limited, Total Energies and Nigerian Agip Oil Company (NAOC) while their supply pipelines suffer recurrent vandalism, coupled with facility failure and low production from aging wells, resulting in serious disruption of supplies.
The Nigeria LNG, he explained, was exploring several options to mitigate the challenge, including partnering with critical security agencies to curtail vandalism on the pipelines and working with their JV partners to increase their gas production. He added that the Nigeria LNG Board of Directors has also approved for the company to procure gas from other international and indigenous gas producers in the country, with the goal of enhancing the performance of Trains 1-6.
Dr Mshelbila expressed concerns that deepwater gas projects that would provide feed gas for the upcoming Train-7 and other future expansions had not been activated by the international oil and gas companies (IOCs), despite the significant progress made in the construction of the Train-7plant. This situation, he said, could lead to the completion of the plant without gas being available for it to liquify.
He solicited the Board’s support for the development of the deepwater gas projects, which are critical to keeping Trains 1-6 full and providing gas for Train 7 and future expansion plans.
Responding, Mr Wabote affirmed that the E-Marketplace will be a game-changer, which will enhance the Service Level Agreement (SLA) guiding the relationship between two organisations. He said that the Board decided to start with the NLNG because of the company’s record of excellence. He added that the intention of the E-Marketplace is to increase transparency in the tender process, “remove human interference in business processes, move things electronically and achieve better results”.
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He described the Final Investment Decision (FID) and other critical steps that were taken for the Train-7 project taken at the height of COVID-19 as a proof of stakeholders’ enthusiasm for the project.
The Executive Secretary of NCDMB expressed concern over the challenges of inadequacy of gas supply and promised to support the company along the lines of approving third partygas injectors and sanctioning new deepwater gas projects. He added that “most of the marginal operators have also found gas but part of their
challenge is where to send the gas.”
He lauded the NLNG for its successes, recalling that at the initial phase of the company’s take-off, “the Management level had 90 per cent expatriates and 10 per cent Nigerians.” However, the table has now turned the other way, with the entire Management now consisting of Nigerians.
On milestones achieved by the foremost gas company since inception, its General Manager, Production, Nnamdi Anowi, said NLNG has as its core areas of operation – Liquefaction, Transmission, Transportation, Marketing and sales. He disclosed that over 5,770 LNG cargoes have been delivered as of September 2023 and over 500,000 tons of liquefied petroleum gas (LPG) produced and sold to markets overseas and in Nigeria.
