The Nigeria LNG Limited (NLNG) and the Nigerian Content Development and Monitoring Board (NCDMB) on March 22, 2019, in Abuja, signed a Nigerian Content Plan for Train-7.
The collaboration between the regulator and operator is seen as an epic demonstration of how to foster compliance with legal requirements and encourage win-win relationships that will outlive project delivery timelines and milestones.
The Train-7 Nigerian Content Plan provides for 100 percent engineering of all non-cryogenic areas in-country. The total in-country engineering man-hours is set at 55 percent, which exceeds the minimum level stipulated in the NOGICD Act.
The Train-7 scope is expected to deliver 100 percent in-country fabrication of the Condensate Stabilisation Unit, pipe-racks, flare system, and non-cryogenic vessels. Site civil works on roads, piling and jetties will keep businesses occupied.
There will be 100 percent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, all sacrifice anodes and 70 percent of all non-cryogenic pumps and control valves will be assembled in-country.
“We have maintained a deliberate focus on Nigerian Content development in all aspects of our operations, long before the enactment of the NOGICD Act 2010. As we progress on the FID and eventual execution of Train 7, Nigeria LNG looks forward to synergy with the NCDMB that delivers the utmost benefit to the Nigerian economy. The signing of the Nigerian Content Plan for the Train 7 works will strengthen this commitment,” Tony Attah, managing director/chief executive, NLNG, said.
Other spin-off opportunities include logistics, equipment leasing, insurance, hotels, office supplies, aviation, haulage, and many more. With the increased number of trains in NLNG, there is also huge scope for local businesses to build capabilities in the maintenance of LNG plants, especially in the area of cryogenics.
“We are excited that the Train-7 project will bring about great opportunities for utilisation of local goods and services in addition to enhancing and developing new capacities and capabilities for the local supply chain. I believe all the various stakeholders are similarly excited that this project is progressing through the funnel,” Simbi Wabote, executive secretary, NCDMB, said.
The Nigerian Content Plan for Train 7 provides for clear and robust provisions to deepen benefits to Local Content in line with the NOGICD Act, which will be significantly higher than what was achieved in the previous NLNG projects. At its peak, the project will provide direct, indirect, and induced employment of over 10,000 workers.
The Train-7 project will also attract other upstream gas supply projects required to keep the LNG train busy; stranded gas fields in the shallow and deep offshore in the area could also become economical with this addition of Tran-7.
The actualisation of Train 7 will also re-assure the world that Nigeria LNG is a leading and reliable supplier of LNG with the increase of its production capacity by 35 percent from 22 Million Tonnes Per Annum (MTPA) to 30 MTPA. The leap will reinforce Nigeria’s comparative and competitive advantage in the global LNG market while also increasing the country’s revenue and foreign investment profile.
