Royal Dutch Shell said that all conditions for the final investment decision (FID) on a new LNG processing unit at Nigeria LNG (NLNG) has been met
Once operational, the new unit, known as Train 7, will add around eight million tonnes per annum (mtpa) of capacity to the Bonny Island facility, taking the total to around 30 mtpa.
Conditions for the FID included formal commitment from the organisations providing financing for the project. Subsequent to the FID, NLNG has announced awards of engineering, procurement and construction (EPC) contracts.
NLNG is a joint venture owned by the Nigerian National Petroleum Corporation (NNPC – 49 per cent), Shell (25.6 per cent), Total (15 per cent) and Eni (10.4 per cent).
Maarten Wetselaar, Shell’s integrated gas and new energies director, 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, Shell Companies in Nigeria and managing director, The Shell Petroleum Development Company of Nigeria Ltd, said, ‘‘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.”