A joint venture led by Italy’s Saipem has secured a $4 billion engineering, procurement and construction contract for Nigeria LNG’s seventh production unit at its Bonny Island plant.
Saipem has a 60 per cent stake in the venture that includes South Korea’s Daewoo E&C and Chiyoda of Japan.
This award follows the signing of the letter of intent in September 2019 between the venture and Nigeria LNG.
Nigeria LNG announced on Wednesday that all conditions for a final investment decision to build the new production unit have been met, including financing.
NLNG is a joint venture compromising of the Nigerian National Petroleum Corporation (NNPC – 49%), Shell (25.6%), Total (15%) and ENI (10.4%).
Shell said in a separate statement that Nigeria LNG would fund the new LNG processing unit without shareholder loans or shareholder equity requirements.
The NLNG Train 7 project consists of the construction of one complete LNG train and one additional liquefaction unit plus other associated utilities and infrastructures.
The new unit will add around 8 million tonnes per annum of capacity to the Bonny Island facility, taking the total to around 30 mtpa.
The Saipem-led joint venture will start construction once the situation with Covid-19 coronavirus pandemic has stabilised, according to Shell.