NIGERIA LNG SEEKS NEW BIDS ON BONNY LNG PROJECT
Nigeria LNG Ltd. has called for fresh bids from two international groups to build the planned liquefied natural gas processing and export plant at Bonny Island, Southeast Nigeria.
After missing the December contract award deadline because of disarray and cash shortages, Nigeria LNG is seeking new bids by the end of April with an eye to a June decision, according to a Reuters report from Lagos. Since board changes last October, Nigeria LNG changed its mind again about plant design, reverting to the established Air Products & Chemicals Inc. cryogenic process in favor of the new Telearc process developed by France's Technip and Italy's Snamprogetti SpA.
"The Air Products process accounts for 28 of 30 LNG plants worldwide," Philip Asiodu, Nigeria's secretary for petroleum resources, told London's Financial Times recently, "and Nigeria is not in a position to experiment with very new technology."
AIR PRODUCTS PROCESS FAVORED
Asiodu expects the next board meeting of Nigeria LNG, set for May, to decide on the Air Products process, which was recommended by project partner and technical advisor Shell Gas B 7 in 1987.
The 54.5 billion project was first discussed more than 25 years ago. Asiodu said Nigeria LNG expects to take delivery of the plant in second quarter 1998, instead of the previous plan for handover in third quarter 1997.
None of the four foreign firms that signed contracts to buy a total 4.1 million metric tons/year during 22.5 years had indicated plans to withdraw, Reuters reported (OGJ, Jan. 18, p. 22). However, two of them were said to be looking to Algeria and Norway for supplies.
"Now what is left is to discuss financing," said Asiodu, "and to ensure that we do not start to construct until 100% of the equity is in place." Reuters said Nigeria LNG hopes to convince U.S., European, and Japanese investors to invest $2 billion in the project.
Bidding for construction contracts are a group of Technip, Snamprogetti, and an M.W. Kellogg Co. subsidiary and a combine of Bechtel Corp. and Chiyoda Corp.
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