Daewoo E&C clinches LNG plant project in Nigeria

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. 

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)