Ahead of the imminent final investment decision for its $4.0 billion (N1.5 trillion) process train expansion, the Nigerian Liquefied Natural Gas (NLNG) Limited has raised sensitization platforms to mobilize local contractors for deluge of job opportunities incubated in the deep pocket project.
However, the Nigerian Content Development and Monitoring Board (NCDMB) has warned the contractors positioning for patronage to see the commitment of NLNG to high Nigerian content input in the huge budget seventh train project as preferential opportunity to compete and not as reserved entitlement.
The Oracle Today reports that key promoters of the NLNG, including the Nigerian National Petroleum Corporation (NNPC), Shell, Total and Eni are expected to finalize investment decision this year to expand the company’s gas processing capacity with the Train 7 project which is expected to boost capacity and enhance value creation for all stakeholders.
The project is expected to ramp up the company’s production capacity by 35% from 22 Million tons per annum (mtpa) to 30 mtpa.
The Train-7 project would be the biggest project by NLNG since the Nigerian Oil and Gas Industry Content Development Act was passed in 2010, and the NCDMB which regulates and monitors industry compliance to the requirements of the law had earlier signed a Service Level Agreement with the liquefaction company to guarantee in-country service delivery where capacity exists.
After crossing critical milestones in committing company shareholders to the expansion project, the management of NLNG has begun preliminary processes that would provide basis for Final Investment Decision (FID) by the partners while mobilizing all contractors in the full supply chain to be on standby for speedy project drive.
At a workshop in Port Harcourt, Rivers State, Managing Director of NLNG, Mr. Tony Attah, assured local contractors that the Train 7 project would be delivered with the involvement of competent Nigerian companies.
The “Public Workshop on Nigerian Content for NLNG’s Train 7 Development” held at Hotel Presidential in Port Harcourt, targeted at giving Nigerian companies information on how Nigerian Content can be maximized in NLNG Train 7 project.
The workshop would be the third held by NLNG to ensure Nigerian companies and the Nigerian economy derive maximum value from its Train 7 project which is expected to commence as soon as a FID is taken.
Mr. Attah told participants at the event that “NLNG is underpinned by its vision of being ‘a global LNG company helping to build a better Nigeria’. The global play is about the business itself and helping to build a better Nigeria is consist with our partnership with NCDMB.
“I will like to invite Nigerian companies to please participate in Train 7, which is the purpose of this workshop. It is consistent with our partnership with NCDMB. It also opens up the opportunities for local companies to play, starting with understanding the scope of the project. In addition, it creates an opportunity to meet the two consortia we are currently working with, B7 JV and SCD JV. They are the key players tasked with the Front End Engineering Design (FEED),” he added.
In warning the local contractors to brace for capacity challenge, the Executive Secretary of NCDMB, Mr. Simbi Wabote, stated that part of the key objectives of the event was to identify local capabilities in the project supply chain, adding that only companies with capacity are better positioned to take jobn advantages in the project.
“It is very important to have clarity of what local content is about. Local content is not Corporate Social Responsibility (CSR). It is not a favour that a company does to a country or a people. It is purely business. It is about giving local companies an opportunity to deliver value through the value chain,” he said.
He remarked that “the public workshop on Train 7 has two objectives: the first is to sensitize interested stakeholders to the upcoming Nigerian Content opportunities in the project. The second objective is to create to a platform for identification of local supply chain capacities and capabilities that are available in-country.
In situating the economic advantages in the domestic economy, Mr. Wabote said the project would also absorb local goods and services, grow in-country capacity for midstream facility development jobs and challenge local companies to venture into new areas of petroleum industry business.
“As we go into the development of NLNG’s Train 7 project, we believe it will bring about opportunities for utilizing local goods and services in addition to affording local companies the prospect to enhance their capacities and capabilities. We expect that the train 7 project will provide a platform to expand existing businesses and create opportunities for new businesses like in the cryogenic space as we push the boundaries of local capabilities,” he stated.
He earlier commended NLNG for the workshop, saying “we had one of it in Bonny community and another in Abuja. Today, we are here in Port Harcourt. It shows the sense of responsibility of the company to ensure that all stakeholders are taken on-board and are informed about the various opportunities in the project.
“The workshop goes to show that there is adequate information and communication. We have gone through the three levels from Bonny community where we assembled the Bonny contractors to talk about this to this moment. This is a strategy we have put in place to ensure that all upcoming opportunities are well communicated to all stakeholders at all levels.
“I share the sentiments with the NLNG MD on the 30 years anniversary of the company and 20 years anniversary in operation. You hardly have businesses that survive for that long apart from businesses that are well run. NLNG has paid back the loans they took to build the plant and now it now sees more opportunities and seeks further investment. This is a good thing,” he added.
Both NLNG and NCDMB made it clear that their collaboration was working to guarantee maximum benefit for company shareholders, industry stakeholders, the Nigerian society and all players in the domestic economy.