Nigeria's $10 Billion LNG Project Set to Launch by End of 2027

en.Wedoany.com Reported - On September 15, Adeleye Falade, Managing Director of Nigeria LNG Limited (NLNG), stated that the Train 7 liquefied natural gas expansion project on Bonny Island, Nigeria, is planned to commence operations by the end of 2027. With a total investment of approximately $10 billion, the project will increase NLNG's annual LNG production capacity from 22 million tonnes to 30 million tonnes upon completion, an increase of approximately 8 million tonnes.

Train 7 reached a final investment decision in December 2019 and entered the EPC execution phase in May 2020. NLNG awarded the EPC contract to the SCD JV consortium, composed of Saipem, Chiyoda Corporation, and Daewoo Engineering & Construction affiliates. Saipem disclosed that the total value of the EPC contracts exceeds $4 billion, of which Saipem's share is approximately $2.7 billion, and it serves as the leader with a 60% consortium share.

The EPC scope of work includes the construction of a complete LNG train and an additional liquefaction unit, adding a combined capacity of approximately 8 million tonnes per annum, along with associated utilities and supporting infrastructure. According to NLNG's published project scope, upon completion of the entire expansion, the company's total capacity at the Bonny Island LNG site will increase by approximately 35% compared to the existing six trains.

The project has entered the late construction stage. The Nigerian Content Development and Monitoring Board disclosed in June that the overall construction completion of Train 7 had reached 90%, with pre-commissioning activities already underway, and at that time NLNG had targeted 2027 for the commissioning of the new facilities. NLNG has now further specified the launch target to the end of 2027.

The current capacity utilization rate of NLNG's existing facilities is approximately 82%–83%. Falade stated that the force majeure measures implemented by the company since 2022 have not yet been lifted, and the company plans to lift them when facility utilization recovers to 90%; the main factor currently limiting the existing plant's ability to increase output is natural gas supply. The company is coordinating with the government and relevant suppliers to increase the volume of natural gas supplied to the Bonny Island liquefaction facilities.