NNPC, Shell, others sign NLNG train-7 design contract

The Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni have signed the Front-End Engineering Design (FEED) contract of Train 7 of the Nigeria Liquefied Natural Gas Ltd (NLNG) yesterday in in London.
The event also witnessed the commemoration of the successful repayment of $5.45bn shareholders loan for Trains 1-6 by the NLNG Shareholders.
This is even as the company generated over $25 billion to the federal government comprising dividends of $17 billion and taxes of $7.2billion.
The NLNG T7 expansion project aims to increase NLNG 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 $4.3 billion.
The target Final Investment Decision (FID) date is fourth quarter 2018.
Speaking at the occasion, NNPC Group Managing Director, Dr.
Maikanti Baru, expressed the corporation’s readiness to support the federal government’s aspirations to actualizing Train-7 of project.
Jointly owned by the NNPC (49%), Shell (25.6%), Total (15%) and Eni (10.4%), 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.
The company sourced a total principal amount of $4.043B 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.
The NNPC GMD said as 49 per cent shareholder in NLNG, NNPC had immensely contributed to the success of the company over the years, supporting equity participation and contribution to shareholders loan.
Describing the NLNG as a jewel in the crown of Nigeria as well as a very strategic investment for the nation, Dr.
Baru stated that the NLNG would continue to act as a catalyst for nationbuilding for years to come.

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