Trains 4 and 5(NLNG Plus)
In 2000, NLNG commenced discussions with prospective buyers of the LNG volumes expected from NLNG Plus trains.
The market was warm partly due to NLNG's reputation built over a relatively short period of trading. The marketing effort was successful. There was tremendous interest in the purchase of the NLNG Plus volumes. The Final Investment Decision on NLNG Plus was taken on March 20, 2002 while the EPC contract was awarded on March 22, 2002 to the construction consortium of TSKJ.
Each of the new trains has a capacity of 4.0 million tonnes per annum of LNG and up to 0.75 million tonnes per annum of Liquefied Petroleum Gas (LPG).
The off-takers of NLNGPlus volumes include Shell Western LNG, Total, Ibedrola (Spain), Endesa and Transgas for European and US destinations. NLNGPlus is designed to further expand the Nigeria LNG complex to incorporate Trains 4 and 5. This will enable the plant to produce additional 4.0mtpa of LNG and 0.75mtpa of LPG and Condensate per train.
RFSU for T4 has been attained whilst that of T5 is expected around end 2005. Commercial deliveries from the trains are expected early in the first quarter 2006. The additional production from the two trains will raise overall capacity to 17mtpa of LNG and 3.4mtpa of LPG. It is estimated that Nigeria LNG Plant would require a total of 2.8bcf/day of natural gas when all five trains become fully operational.
In March 2002, FID was taken for Trains 4 and 5. Their features include:
- Air-cooled C3/MR design
- 4.1 mtpa LNG & 0.5 mtpa LPG
- 2 X GE-7 gas turbine drive with 10 MW starter/helpers
- Extended End flash system
- Parallel APCI cryogenic heat exchangers
- Higher liquefaction pressure
- Extension of LPG jetty for LNG loading
- Two additional GE-6 for power generation
- Extension of LPG chilling unit (U-3700).
Cost and Financing for NLNGPlus
The NLNG Plus project (Trains 4 and 5) is estimated to have cost US$ 2.1 Billion (excluding ship acquisition costs). NLNG mandated five international and six national banks to lead the funding of international and Nigerian facilities. The international banks are BNP Paribas, Citigroup, Credit Lyonnais, MCC and West LB. The Nigerian banks are Citibank Nigeria, First Bank of Nigeria, FSB International Bank, Guarantee Trust Bank, Union Bank of Nigeria and United Bank for Africa.
The International Facilities comprise four international commercial bank loans supported by Export Credit Agency (ECA) guarantees or insurances totalling US$ 620 million with an eight year maturity period (the ECA facilities).
These were accompanied by an uncovered international bank loan of US$180 Million with a 6.0 year maturity, creating a ratio between ECA outstandings to international facilities outstandings of at least 77.5:22.5. The ECAs involved in this financing are US EXIM, ECGD, SACE and Gerling NCM (formerly NCM).
Shipping for Trains 4 and 5
BGT was required to provide four of the eight ships for Trains 4 and 5 volumes. For these, the company raised $460 Million, signed March 21, 2003, to partly fund the construction of the vessels. This facility was arranged by ABN AMRO Bank, Credit Lyonnais, Fortis, ING Bank, HVB, Verein und West Bank and West LB.
The balance of $282 million came from internally generated cash flows and shareholders' support.
Trains 4 & 5 (NLNG Plus) Gas Supply Agreement
- 231/3 % by NNPC/SPDC/NAOC/EPNL Joint venture, with SPDC (Shell Affiliate) as operator.
- 231/3 % by NNPC/NAOC/PONCL Joint Venture, with NAOC as operator.
- 231/3 % by NNPC/EPNL/Joint Venture, with ENPL (TOTALFINAELF Affiliate) as operator.
NLNG Train Six
This project requires an additional 670MMscfd of feedgas, bringing the total gas requirement of the 6-train complex to 3500 MMscfd, up from 1500 MMscfd for the initial 3-train complex.
