A joint venture led by Italian oilfield services company Saipem has secured a $4bn contract for Nigeria LNG Train 7 project.
The contract is for the engineering, procurement and construction of the LNG project to be carried out at Bonny Island LNG complex in Nigeria.
Daewoo E&C and Chiyoda are the partners to Saipem in the joint venture.
Nigeria LNG(NLNG), in which the Federal Government of Nigeria is one of the main shareholders, has awarded the contract to the joint venture.
In December 2019, NLNG took final investment decision on the Train 7 project, which is expected to increase its production by 35%, at the LNG complex.
The Bonny Island LNG complex expanded from a two-train plant in 1999 to a six-train plant within nine years after start-up.
An investment of more than $10bn is expected to be mad in Train 7 and the upstream scope of the LNG value chain.
The Nigeria LNG Train 7 project will include the construction of one complete LNG train and one additional liquefaction unit with a total capacity of about 8 million tons per annum (mtpa).
The project will also consists of other extensive associated utilities and infrastructures.
Saipem’s share in the contract value will amount to about $2.7bn.
Saipem’s CEO Stefano Cao said: “The investment decision by Nigeria LNG Limited, which includes several important energy companies, demonstrates that natural gas, in whose value chain Saipem has a recognized 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.”
Saipem, in a consortium with McDermott and Chiyoda, had earlier secured an EPC contract for the onshore liquefaction plant at the $20bn Mozambique LNG Area 1 project.