(Alliance News) - Royal Dutch Shell PLC said late Wednesday that all conditions for the final investment decision on a new liquefied natural gas processing unit at Nigeria LNG has been met.
Nigeria LNG is a joint venture, with 49% of it owned by state-owned Nigerian National Petroleum Corp, 26% by Shell through its subsidiary Shell Gas BV, 15% by Total SA and 10% by ENI Spa.
Conditions for the FID included formal commitment from the organisations slated to provide financing for the project.
Once operational, the new unit Train 7 will add 8 million tonnes per annum of capacity to the Bonny Island facility, taking the total to around 30mtpa.
"While remaining mindful of prevailing macro-economic challenges, Shell continues to see NLNG as a great resource that can deliver value to the people of Nigeria and investors alike. This decision is consistent with our long-term strategy and our disciplined approach to capital investment," said Maarten Wetselaar, director of Shell Integrated Gas & New Energies.
"Natural gas is a core component of our strategy to provide more and cleaner energy solutions. With global LNG demand expected to double by 2040, the expansion of the NLNG Bonny Island facility is crucial in helping Shell meet the world’s growing energy needs," Wetselaar added.
Shares in Royal Dutch Shell's 'A' shares closed 3.5% lower at 1,265.40 pence, while its 'B' shares were down 3.0% at 1,223.40p on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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