The Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni, Wednesday, signed the Front-End Engineering Design (FEED) contract of Train 7 of the Nigeria Liquefied Natural Gas Ltd (NLNG) in London.
The NLNG T7 expansion project aims to increase production capacity from 22 MPTA to over 30 MTPA by the debottlenecking of T1-6 and the addition of train -T7 and associated infrastructure at an estimated cost of US$4.3 billion. The target Final Investment Decision (FID) date is set for fourth quarter 2018.
The event also witnessed the commemoration of the successful repayment of $5.45 billion shareholders loan for Trains 1-6 by the NLNG Shareholders.
The company sourced a total principal amount of $4.043 billion from its shareholders in their respective shareholding proportions to partly fund the construction of Trains 1-6.
While the interest during the construction period was capitalised and added to principal for repayment from operational date of the financed trains, the total capitalised interest in the shareholders loan is $1.411 billion which, in addition to the total principal drawdown of $4.043 billion, accounted for the total loan amount of $5.45 billion repaid by the company.
NNPC’s Group Managing Director, Dr. Maikanti Baru, said as 49 percent shareholder in NLNG, NNPC had immensely contributed to the success of the company over the years, supporting equity participation and contribution to shareholders loan.
“Through critical interface with relevant government agencies, we have played a pivotal role in the actualization of Trains 1 to 6 (T1-T6). Given the success of T1-T6, NNPC is therefore fully committed and aligned with government aspirations to replicate the success of this project,” Baru noted.
He said the prompt servicing of shareholders’ loan with accelerated repayments did not only demonstrate NLNG’s credit worthiness, it had also reiterated its robust financial position.
He commended the tireless efforts of the various working teams – the Board and Management of NLNG as well as the Shareholders and the IOCs for the feat recorded so far.
“Your sacrifices, faith in Nigeria and unflinching support in providing the required financing and technical support for the NLNG is commendable. It is our hope that this relationship opens a new vista of opportunities for all the Shareholders to play more active roles in the midstream oil & gas business in Nigeria,” Baru added.
Jointly owned by the NNPC (49percent), Shell (25.6percent), Total (15percent) and Eni (10.4percent), NLNG’s successful journey started in 1999 with the commissioning of Train 2 ahead of Train 1 which was commissioned in 2000. The company grew to a Six Train facility with the commissioning of Train 6 in 2007.
As at today, the NLNG has generated revenues of more than $25 billion to the Nigeria government comprising dividends of $17 billion and taxes of $7.2 billion.