April 21, 2024

NCDMB handles NLNG Train 7 monitoring visit in South Korea

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Adebayo Obajemu

The Nigerian Content Development and Monitoring Board, NCDMB, is currently conducting an onsite out-of-country monitoring visit to South Korea to look at facilities manufacturing pressure vessels, columns, heat exchangers, and filters for the Nigeria Liquefied Natural Gas, NLNG, Train 7 project being worked on by a consortium of Saipem, Chiyoda and Daewoo, known as the SCD joint venture, JV. The visit is from the 18 – 22 March 2024.

The monitoring visit is being led by the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, and the Director of Monitoring and Evaluation, NCDMB, Mr. Abdulmalik Halilu. The Nigeria LNG Ltd team is led by the Managing Director, Dr. Philip Mshelbila, and the General Manager, External Relations, and Sustainable Development, NLNG, Mr. Andy Odeh.

Recall that The NLNG Train 7 project is vital to the Federal Government of Nigeria as it aims at increasing NLNG’s production capacity by 35% from 22 Million Tons Per Annum (MTPA) to 30 Million Tons Per Annum, MTPA, thereby enhancing Nigeria’s position as a leading LNG exporter.

The visit would look into capabilities in out-of-country yards, plan for in-country capacity development, in readiness for future LNG train projects, obtain relevant data on project status for fabrication of Pressure Vessels, Heat Exchangers, Columns, and Filters and ensure strict compliance of the project with commitments contained in the Nigerian Content Compliance Certificate signed by both parties.

In the project update meeting, the Executive Secretary of NCDMB thanked the contractors for their resilience and the impressive quality of the job done so far. He admonished them to build more capacities in Nigeria so that future projects of this nature can leverage capacities built in Nigeria. He also emphasised the continuous collaboration with NLNG Ltd to ensure the project’s success while also maximising its positive impact on Nigeria’s economy and global LNG industry.

At a recent review engagement between senior officials of the NCDMB and NLNG Ltd in November 2023, it was revealed that the ongoing construction of the Train-7 project at the firm’s base at Finima, Bonny Island, Rivers State had reached 52 percent and engages 8,300 Nigerians of diverse skill sets.

According to the Nigerian Content Plan signed in March 2019, the Train-7 scope will 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, jetties and will also keep local businesses occupied.

NCDMB officials had confirmed that the project will also provide great opportunities for the utilisation of local goods and services in addition to enhancing and developing new capacities and capabilities for the local supply chain.

There will also be 100 percent local procurement of all LV cables and HV cables, all non-cryogenic valves, protective coatings, and all sacrifice anodes. 70 percent of all non-cryogenic pumps and control valves will be assembled in-country.

Other spin-off opportunities would include logistics, equipment leasing, insurance, hotels, office supplies, aviation and haulage.

Senior personnel of the NCDMB had also affirmed that the increased number of NLNG Trains would also provide huge business opportunities for local businesses to build capabilities in the maintenance of LNG plants, especially in the area of cryogenics. The project would also catalyse other upstream gas supply projects required to keep the LNG train busy and make stranded gas fields in the shallow and deep offshore in the area economical.

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