Shell support for go-ahead for train six at Nigeria LNG
Posted: 30 July 2004
Shell Gas B.V. today announced that Nigeria LNG Ltd (NLNG), a Nigerian company in which Shell Gas B.V. owns a 25.6% interest, has taken a positive Final Investment Decision for a sixth Train at NLNG's plant on Bonny Island. This decision signals an expansion of the Royal Dutch/Shell Group of Companies' (Shell's) interests in the liquefied natural gas (LNG) business in the Atlantic Basin, furthering their leadership in LNG globally.
Shell has entered into agreements to purchase 3 million tonnes per annum (mtpa) of LNG from Train Six to supply customers in North America and Europe. Shell is already the world's largest international equity producer of LNG and NLNG's Train Six will further increase Shell's contracted equity LNG production.
Construction of the sixth train will make NLNG the largest such facility in the Atlantic Basin. Train Six will have a capacity of 4 mtpa bringing the total NLNG plant capacity to 22 mtpa of LNG and 5 mtpa of natural gas liquids. The Train Six is expected to start up in 2007.
Malcolm Brinded, Chief Executive Officer of Shell Exploration and Production and Chief Executive Officer of Shell Gas & Power, said: "Today's announcement underlines our strong global position in LNG - our expertise and the global reach make us a leading player in the LNG business. Shell's LNG volumes from Train Six will support our growth strategy in North America where we have import capacity to meet growing demand."
Shell Petroleum Development Company of Nigeria Ltd (SPDC), the largest oil and gas producer in Nigeria, will supply 355MMscf/d of gas to Train Six bringing its total supply to NLNG to 1940 MMscf/d.
Chris Finlayson, Managing Director of SPDC, said: "Train Six demonstrates Shell's continued commitment to Nigeria, and we are delighted to be able to support the expansion of what is already the largest investment of any type in sub-Saharan Africa. NLNG is an important customer for SPDC's gas, helping to increase and diversify revenue for the nation from the country's hydrocarbons."
Shell Global Solutions International has been the Technical Advisor for NLNG Train Six and will be providing support to NLNG for the development of the project, through a Construction Services Agreement and thereafter via an Operating Services Agreement.
For more information see www.shell.com
Posted by Richard Price,
Editor Pipeline Magazine
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