Nigeria LNG (NLNG) has awarded engineering, procurement and construction (EPC) contracts to a Saipem-led consortium for the Nigeria LNG Train 7 project.
The project is to be executed at Bonny Island LNG complex in Nigeria.
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The contracts were awarded to a Saipem, Daewoo, and Chiyoda joint venture known as SCD JV.
Saipem holds a 60% share in the SCD JV.
The value of the overall contracts is valued at $4bn, with Saipem’s share amounting to $2.7bn.
According to Saipem, the NLNG Train 7 project involves the production of approximately eight million tonnes per year (Mtpa).
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By GlobalDataSaipem CEO Stefano Cao: “This new project in Nigeria, where we have been operating for over 50 years, confirms our ability to build solid relationships, qualifying Saipem as a global company.
“It also proves the validity of the management methods of Covid-19 emergency thanks to the flexibility of our organisational model and the practise of our people to work remotely. The investment decision by Nigeria LNG Limited, which includes several important energy companies, demonstrates that natural gas, in whose value chain Saipem has a recognised leadership, will be pivotal to the energy transition.
“The award of this contract contributes to increase the portion of non-oil-related backlog and confirms the overcoming of the link between Saipem’s share value and oil price.”
The Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation (NNPC), is the main shareholder of the NLNG, alongside Shell, Total, and Eni.
In January this year, Eni signed a long-term deal with NLNG to purchase 1.5 million tonnes (Mt) of liquefied natural gas (LNG).
In July 2018, NLNG awarded FEED contracts to Saipem, TechnipFMC and Chiyoda for the seventh LNG train (NLNG T7) to enhance its output and strengthen its position as a suppier in the global market.
