The LNG trains 4 and 5 and the associated facilities will be constructed as a brown field project in the period 2002 to end 2005. There are three distinct completion dates -Ready for Start-up (RFSU) beginning with the New LNG Jetty in February 2005 followed by Train-4 in June 2005 and finally Train-5 in November 2005.

 

One of the preliminary construction related activities will be the dredging of sand from a site 9km offshore from the mouth of Bonny River. In addition to some 500,000 tonnes stockpiled by NNPC, an estimated 1,00,000 m3 of sand is required as fill material for the NLNGPlus project. Priority is given to maximum use of the existing stockpile, which will be purchased from NNPC, in order to minimise the need for dredging. Suction dredgers will remove the sand from the seabed and deliver it to the new laydown area for the NLNGPlus project, where it will be stored in two stockpiles, one at the northern end and one at the southern end of the site. Dredged sand will be dewatered prior to transportation to avoid contamination of the estuarine area with salted water. The runoff will be periodically analysed and reported to the regulators.

 

The existing (Base and Expansion) labour camps will be utilized to support the project. However, the TCN (Third Country Nationals) camp will need to be relocated to the construction "laydown area". The local labour and TCN camps will be reviewed and revisited to improve conditions to the standards required.

The permanent facilities to be built for the NLNGPlus project will be situated within the present fence of the NLNG site complex (the lease area). A Quantitative Risk Assessment (QRA) has been carried out to determine the potential risks to the public posed by the whole LNG Project (including a possible train 6). The results identified certain areas outside the NLNG fence bounded by the 10-6 risk contour, which should remain sterile zones. NLNG will work with its industrial neighbours, SPDC and the Mobil/NNPC Oso Condensate plant to maintain the sterile areas. 

 

The main emission sources of the NLNG facility are from the combustion processes, such as gas turbines and the acid gas incinerator. Other sources only have emissions during emergency situations, such as diesel engines for the emergency electrical power generators and the firewater pumps. Usage of low-NOx burners in the NLNGPlus project will result in only 1500 tonnes NOx emissions per year, which will be 24% of the total 5 trains. The CO emissions will be 509 tonnes and SO2 12.6 tonnes per year.

 

Aqueous effluents will mainly consist of surface drainage; all contaminated water will be collected and treated in the existing biotreatment facilities.

 

Wastes will be handled in line with the existing procedures of NLNG: after segregation and possible reuse, combustible waste will go to the existing waste incinerator and the other waste will be disposed off in landfills.

 

During normal operation, noise levels will not exceed the acceptable limits of 85 dB(A) in the work areas, and 45 dB(A) and 55 dB(A) at the edges of nearby living areas during night and day time, respectively.

 

Employment for the NLNGPlus project is estimated at a total of between 50~60 million ,000,000 man-hours for the construction phase distributed over 4 years with a peak workforce at around 7,000. The Nigerian content will be a minimum of 90% of labour manhours worked on site. Some 80 additional permanent (skilled) employment positions remain in the operational phase on Bonny Island. These figures exclude indirect employment arising from the project.

The Shareholders of Nigeria LNG Ltd. have a wealth of experience in developing oil and gas projects world-wide and are well-known in the crude oil and LNG businesses. The NLNG partners form a strong team as they have won their spurs in sound environmental protection in design, construction and operation of large resource development projects.

 

The Shell Group has issued a range of Health, Safety and Environment (HSE) and Sustainable Development (SD) related documents, such as principles, policies, guidelines, position papers, etc. Particular reference is made to:

All the above standards have been adopted by NLNG and are reflected in the HSE Premises - the minimum HSE standards applicable to the design and operation of the plant – and the environmental, social and health protection measures for the design, construction and operation of the project.

 

In line with Shell guidelines NLNG aims to contribute to Sustainable Development. This means that a strategy will be followed that integrates economic, social, health and environmental considerations in all project decisions and actions, and reflects the contribution to be made under each of the six sustainability principles:

 

The design of the plant has been carried out to adhere to Nigeria LNG's HSE Premises and is therefore based on best available proven technology. The HSE Premises are applicable to normal operations, including maintenance activities. They cover, with regard to environmental aspects, both resources used and discharges (such as emissions, effluents and wastes). The incinerator and effluent treatment facilities provided for the base project will take solid wastes and liquid effluents from both industrial and domestic sources. Despite this, there will still be the need for off-site waste disposal. The control of noise, both on and off-site is also covered by the HSE Premises.

 

The specifications for operations and discharges (such as emissions, effluents, wastes and noise), as defined in the HSE Premises, are fully in accordance with the World Bank guidelines for this type of operation. This applies not only to the NLNGPlus project but also to the 1st, 2nd and 3rd trains. The NLNGPlus project explicitly aims at compliance with the guidelines issued by the World Bank with regard to consultation, social performance and sustainable development in order to maintain a 'world class' project. :.Primary environmental management responsibilities during construction will rest with the main Engineering Procurement and Construction (EPC) Contractor. Nigeria LNG will monitor the performance of the Contractor on health, safety and environmental issues through its HSE Premises and a Health Safety and Environment Management System (HSE-MS). This will follow the same structure as the HSE-MS developed for the Base project. Once construction is complete, the NLNGPlus project will be operated and managed by Nigeria LNG as part of the management of the whole LNG plant.

 

The principal economic benefit of the NLNGPlus project will be the creation of revenues from the sale of the gas. This resource is currently under-utilised and this project provides an important opportunity to use it. On aggregate, NLNG project contributes an estimated 4.27% rise in the nation's real GDP in a typical year.

 

Another major benefit of the project is the use of associated gas that is currently flared by the gas-producing companies in the Niger Delta and represents a major source of green house gases (GHG). When the LPG processing facilities associated with the third train are completed in 2003, all three trains will have the flexibility to use 100% associated gas feedstock, enabling a major reduction in gas flaring in Nigeria, which is estimated to be around 2.5 billion standard cubic feet of gas per day at present. The LNG project, including the 4th and 5th trains, will eventually offer a substantial reduction in gas flaring in the Niger Delta by consuming up to 2.7 billion standard cubic feet of associated gas (AG), i.e. a major contribution to the Government's flare-out target of 2008.

 

There will also be significant local, regional and national benefits from the NLNGPlus project in terms of Nigerian Content via specified patronage of local contractors/suppliers and employment, especially during construction, and skills development and training. Such provisions would yield acquisition of appropriate capabilities in investment and strategic marketing skills at the firm level, plus techno-managerial and consultancy, as well as technological human resources development capabilities at the national level. The programme of community assistance in areas of health, education and infrastructure that was stated as part of the Base project into the Expansion project will also continue. Such programmes include enhanced Scholarship Award and Graduate assistance schemes, Education Endowment Fund, and a number of roads and buildings rehabilitation works. In addition to the direct benefits of employment, the project will also maintain indirect economic benefits in the local area, due to supplies of food, fuel, domestic goods and services. A multi-million Naira Micro-Credit Scheme has been established, to create avenues for self-employment and reduce the host communities' (pipeline and plant) dependence on oil and gas industries for infrastructure and economic survival, caps all these efforts.

 

NLNG, together with the neighbouring companies, The Shell Petroleum Development Company and ExxonMobil, have also formed the Joint Industry Consultative Committee (JICC). This committee – funded 50% by NLNG - plays a significant role in the development of Bonny Island and in consultation with the local communities a Master Plan for the area has been prepared. Key infrastructure projects embarked upon include two new major roads (over 4km) to improve commuting within Bonny town. Others are a new pipe-borne water supply layout and rehabilitated 200m3 Water Treatment plant, and over 7km high voltage (11kV) power supply grid with step-downs for easy connections to domestic users - all covered under a Memorandum of Understanding between the JICC and the community-Bonny Kingdom Development Committee (BKDC).

 

In all, apart from increases in average price level and Imports, the NLNG project continues to have significant positive impact on the economy, which far outweighs any negative consequences.