TSKJ Partners Win EPC Contract for Expansion of Nigerian Plant

Source: www.gulfoilandgas.com 3/22/2002, Location: Africa

TECHNIP/COFLEXIP announced that Nigeria LNG Limited has awarded the engineering, procurement and construction (EPC) contract for the realisation of the trains 4 and 5 expansion project, or "NLNGPlus Project", at its existing $3.8 billion liquefied natural gas facility to the joint venture team of Technip-Coflexip, Snamprogetti, Halliburton KBR and JGC Corporation, known as TSKJ. The EPC contract to TSKJ is valued at over 1.7 billion US dollars.

When the NLNGPlus project is completed in July 2005, the plant will have an overall production capacity of 16.8 million tons per year of LNG and two million tonnes per year of liquefied petroleum gas. It will also utilize about 2,800 million standard cubic feet per day of gas.

Each of the two new trains and associated facilities will be able to process 4.0 million tonnes per year of LNG. The expansion also is intended to increase the capability of the complex to process associated gas feedstock, enabling a major reduction in gas flaring in Nigeria. In addition to the environmental benefits, the NLNGPlus expansion project is expected to increase significantly export earnings for Nigeria and further establish NLNG as one of the major players in the global natural gas industry.

TSKJ has also provided NLNG with a price for an additional LNG train (Train 6), which will further expand the LNG capacity to 20.8 million tons per year.

TSKJ was awarded the EPC contract for Trains 1 & 2 and the necessary site infrastructure in December 1995. Trains 1 & 2 started up in August 1999 and February 2000. Train 3 with LPG recovery facilities was awarded to TSKJ in March 1999. Construction of Train 3 is well under way and is expected to start up on schedule in 2002.

In early 2001, TSKJ successfully won the Project Specification for the NLNGPlus Project in an international competitive tender process. This work was completed in November 2001.

NLNG shareholders are Nigerian National Petroleum Company (49%) and subsidiaries of Royal Dutch/Shell (25.6%), TotalFinaElf (15%) and Agip (10.4%).

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