Reuters reports that the signing of this agreement marks “a moment of amity” with international oil majors, as both a tax dispute and a new law increasing the government’s take on deepwater oil production have upset some companies.
According to the Reuters, the final investment decision (FID) on the Train 7 processing unit at the Bonny Island facility was signed by Nigeria LNG partners Eni, Total, Royal Dutch Shell and Nigerian National Petroleum Corp. (NNPC).
Train 7 has reportedly been delayed for a number of years, and a previous deadline of 4Q18 was not met. Once complete, however, it is expected that the train will increase output by 35% to 30 million tpy, and remedy a decline in the nation’s LNG output.
According to Reuters, NNPC Group Managing Director, Mele Kyari, reportedly said that the Nigerian President, Muhammadu Buhari, has instructed NLNG to push ahead towards Train 12, and that the company is on course to do so.
Kyari added: “It also signifies that there is renewed confidence over international investors, particularly our partners which we have known for a long time, to still agree to put money back into this country.”
Kyari went on to say that the project was expected to generate US$20 billion in net revenue for the government, and create around 10 000 jobs directly.
Earlier in December, Reuters reports that NLNG signed 20-year supply agreements with Shell, Eni and Oando (a Nigerian oil company) to feed the Train 7 project. In addition to this, Vitol also signed a 10-year deal with the company to purchase 500 000 tpy of LNG from other trains.
Read the article online at: https://www.lngindustry.com/liquefaction/03012020/nigeria-to-boost-lng-output/
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In its efforts to further boost natural gas utilisation in the country and enhance Nigeria’s gas revenue, NNPC Ltd has signed two major agreements to deliver LNG to the domestic gas market and the international LNG market.