Lagos, Nigeria — Nigeria LNG, owners of the six train Bonny LNG plant located in Nigeria's Niger Delta Wednesday said it signed a letter of intent for the engineering, procurement and construction, or EPC, contract with SCD JV Consortium, to build a seventh train at the plant.
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The consortium is made up of Saipem of Italy, Japan's Chiyoda and Daewoo of South Korea.
Construction of Train 7 at the Bonny LNG plant will increase output from the plant to 30 million mt/year from the current output of 22 million mt.
NLNG Ltd. said issuing the letter of intent for the EPC to the consortium confirmed the company's intention to award the project contract to the preferred bidder.
"The Letter of Intent is one of the key milestones to be achieved on the road to FID by its shareholders," NLNG stated.
"It marks another significant step towards the realization of Train 7 and it's attendant value to NLNG's shareholders," the company added.
Nigerian National Petroleum Corp., which holds 49% interest in the NLNG, said recently it expects the final investment decision on the project to be taken early in October.
In July last year, NNPC and its foreign partners in the Bonny LNG plant signed the contract for the design of Train 7 with the SCD consortium.
Other partners in the project are Shell, Eni and Total.
-- Newsdesk-Nigeria, firstname.lastname@example.org
-- Edited by Debiprasad Nayak, email@example.com