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NCDMB urges NLNG to engage local companies for Train-7

By Anthony Isaac


The Nigerian Content Development and Monitoring Board (NCDMB) has urged the Nigeria LNG Ltd (NLNG) to evaluate the capabilities of the beneficiaries of Project 100 programme and engage the companies in the execution of its Train 7 project and other related services.

A statement by the NCDMB said the request was contained in a recent letter by its Executive Secretary, Engr. Simbi Wabote, to the Managing Director of NLNG, Mr. Tony Attah, titled “Introducing Project 100 Beneficiaries for Consideration on NLNG Projects”. Also enclosed in the letter was the list of the Project 100 companies, the range of services they offer to the oil and gas industry and their track records.

ExpressDay recalls that the shareholders of Nigeria LNG Limited (NLNG) late last year took the Final Investment Decision (FID) for its Train 7 Project, which will increase its production by 35% and its competitiveness in the global LNG market.

The shareholders are 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%).

The partners signed the long-awaited deal in Abuja on Friday December 29, for the project that would in the long run generate about $20 billion in revenue to the Federation and create about 12,000 direct jobs in the country.

The decision allows the expansion to increase the capacity of NLNG’s six-train plant from the extant 22 Million Tonnes Per Annum (MTPA) to 30 MTPA, with the award of contracts for the engineering, procurement and construction activities to follow the closure of bank and Export Credit Agency (ECA) financing, and the finalization of some key supporting commercial agreements expected in early 2020.

The project is expected to be completed in five years with first LNG rundown expected in 2024.

Wabote in his letter explained that Project 100 was conceived to identify 100 start-up oil and gas and support them through special interventions to facilitate their incubation, maturation and growth into world class service companies.

He said the programme was introduced as part of the Board’s mandate to develop the capacity of the local supply chain for effective and efficient service delivery in the oil and gas industry.

The first phase began in January 2019 and 60 companies were selected through a transparent process conducted by KPMG, an international consultancy firm. The benefits of the scheme include special interventions including access to market opportunities, access to capacity building, funding, policy prescription, research and development and business insight.

He said the Board has been giving these supports to the companies and is committed to continue as well as offer other institutional assistance to aid the companies’ maturation into world class status.

As part of its access to market intervention, Wabote confirmed that NCDMB will regularly recommend Project 100 Companies to projectpromoters and big EPCIcompanies, for them to independently assess their capabilities for the purpose of creating business opportunities.

In this particular instance, NLNG is expected to conduct its own due diligence on the capacity of these companies and based on their proven capacities engage them for the Train 7 project.

Written by ExpressDay

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