BUSINESS

Daewoo E&C clinches LNG plant project in Nigeria

By Kim Da-sol
  • Published : Sept 16, 2019 - 18:20
  • Updated : Sept 16, 2019 - 18:20

South Korean builder Daewoo Engineering & Construction has clinched a liquefied natural gas plant project in Nigeria, becoming the first Korean builder to be chosen as a prime contractor in the competitive global LNG plant sector.

According to Daewoo E&C, it signed a letter of intent with Nigeria LNG last week to undertake planning, equipment purchasing and construction for the Train 7 liquefaction and purification facility on Bonny Island, Nigeria. 

The Train 7 project is expected to expand the annual production capacity of Nigeria LNG’s existing LNG facility to 8 million tons, the company said. 

The project is estimated to be worth around $5 billion (5.9 trillion won), according to industry sources, but the company did not disclose its value, citing a confidentiality clause in the contract. 

Daewoo E&C said it had formed a consortium with Italy’s Saipem and Japan’s Chiyoda to secure the contract. The Korean company is responsible for some 40 percent of the planning, equipment purchasing and construction. 

Nigeria LNG’s gas plant on Bonny Island, Nigeria (Daewoo E&C)

Daewoo E&C attributed its success in securing the deal to its previous experience as a subcontractor, having helped build five of Nigeria LNG’s six LNG trains as well as having taken part in some 70 construction projects in Nigeria since 1978. 

By Kim Da-sol (ddd@heraldcorp.com)


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