NLNG Signs Technical Services Agreement with shell global solutions for Further Expansion

Nigeria LNG Limited (NLNG) has signed a Technical Services Agreement with Shell Gas Nigeria BV, The Hague (represented by Shell Global Solutions International) for its planned further expansion.
The Agreement was signed on 16 December 2000 by the NLNG Managing Director, Dr. Andrew Jamieson and was witnessed by the Company Secretary, Miss Edith Unuigbe. The signatories for Shell were Mr. Michiel Boersma (President of Shell Global Solutions International and Managing Director of Shell Gas Nigeria BV) and Mr. Han Goudsmit (General Manager Projects of Shell Global Solutions).

The further expansion, known as NLNGPlus, is for the construction of two additional liquefaction trains on the existing plant site at Finima on Bonny Island in Rivers State, Nigeria. The NLNGPlus Project will be based on well proven, modern, technology that will enable each train to produce at a capacity of about 4 million tonnes per annum.

Technical and commercial studies for NLNGPlus commenced at the beginning of the year and the contract for the detailed engineering, procurement and construction of the plant is expected to be awarded in early 2002, with first production of LNG in mid-2005.

Implementation of the NLNGPlus Project is a high priority of the Federal Government of Nigeria and has enjoyed the full support of NNPC and the Foreign Shareholders.
Shell will provide technical advice and services to NLNG for the design and development of the NLNGPlus Project. Under the Technical Services Agreement, the extensive in-house know-how of Shell, the industry leader in LNG, will be incorporated into the design of the Project. and their project management skills will be utilised for overall project development.

The Agreement is of a ground breaking nature in that it is based on an Incentive Package desired to achieve top quality performance and added value to NLNG. It also provides for rapid and extensive transfer of LNG know-how to Nigerians.

The completion of the NLNGPlus Project in 2005/2006 will increase NLNG’s production of LNG to about 16.7 million tonnes per annum in addition to LPGs and condensates and will enable NLNG to process almost 3 billion cubic feet per day of associated gas, which would otherwise be flared.

NLNG started up its initial 5.9 million tonnes per annum plant, consisting of two parallel LNG trains in August 1999. The plant has consistently exceeded design capacity and a third train, identical to the existing two trains, is under construction and is scheduled for completion in late 2002. Shell was Technical Adviser for these projects also.

NLNG is a joint venture of the Nigerian National Petroleum Corporation (NNPC) (49%), and affiliates of Shell (25.6%), TotalFinaElf (15%) and Agip (10.4%).