Nigeria LNG has signed a letter of intent with SCD JV consortium for the engineering, procurement, and construction (EPC) contract to build a seventh train at the Bonny LNG plant located in Nigeria, as part of $12bn (£9.7bn) project expansion plan.

The joint venture, which comprises Saipem, Daewoo E&C and Chiyoda, has been selected as its preferred bidder for the EPC contract.

Saipem said in a statement: “The intended award of the EPC contract is conditional upon the approval of Nigeria LNG Limited’s board of directors and shareholders, the approval of any governmental or regulatory authorities, the achievement of any conditions precedent to a final investment decision by Nigeria LNG Limited and the execution of a legally binding EPC contract by the parties.”

With the signing of the letter of intent, Nigeria LNG and the SCD JV committed to finalising the EPC Contract based upon the SCD JV’s proposals submitted on an exclusive basis.

The SCD JV’s scope of work of the proposals includes implementation of the engineering, procurement and construction of one complete train and one liquification unit with a total capacity of approximately 8 million tonnes per annum (mtpa), plus other associated utilities and infrastructure.

Nigeria LNG expansion project details

The addition of seventh train will increase the Nigeria LNG facility’s total production capacity from 22mtpa to 30mtpa.

The project is owned and operated by Nigeria LNG, a joint venture between Nigerian National Petroleum Corporation (NNPC) with 49% stake, Shell Gas with 25.6% interest, Total with 15% stake and Eni with 10.4% interest.

The train seven at the Bonny Island LNG facility is scheduled for commissioning in 2024. It will include a new liquefaction unit, an 84,200m³ storage tank, a 36,000m³ condensate tank and three gas turbine generators.

The LNG produced at the Bonny Island facility is sold to 11 customers including Enel, Gas Natural, Botas, GDF Suez, GALP Gas Natural, BG LNG, Endesa, ENI, Iberdrola, Shell Western LNG, and Total Gas and Power, under separate long-term LNG sales purchase agreements.

In March 2019, Nigeria LNG has signed the Nigerian Content Plan (NCP) with the Nigerian Content Development and Monitoring Board (NCDMB) for the Nigeria LNG Train 7 project.