Nedogas Development Company Limited (NDCL), in collaborative partnership with the Nigerian Gas Company Limited (NGC) and the Nigerian Content Development and Monitoring Board, has successfully completed the construction and technical commissioning of a 300mmscfd capacity Kwale Gas Gathering (KGG) and injection Facility located in the Umusam community, near Kwale in Delta state, Nigeria.
The NDCL is a joint venture company between Xenergi Ltd and the Nigerian Content Development and Monitoring Board (NCDMB). The Nigerian Gas Company Limited, on the other hand, is a subsidiary of the Nigeria National Petroleum Company Ltd.
In a joint statement yesterday in Abuja, the triumvirate said the KGG facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick access to market.
“The KGG hub, which has been tied-in to the NGC-owned and operated 48 inch OB-3 gas trunk line, is now fully commissioned with an initial gas injection capacity of 25 mmscfd from the Nedogas plant located 3km away in Energia’s Ebendo field. Injected gas volumes are gradually being ramped up,” the joint statement signed by Debo Fayemi for Xenergi and Nedogas, and Esuene Kikile for the NCDMB said.
The project, they stated, represents a significant milestone in Nigeria’s decade of gas as well as a major achievement in the quest to provide gas into the OB3 trunk line and monetize natural gas resources from the OML 56 producer cluster.
With the successful injection of gas from the Energia-operated Ebendo field into the OB3, the KGG Facility is now poised to receive additional gas from nearby fields including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, Chorus Energy and Midwestern Oil & Gas.
The idea is to position KGG as a fully-fledged gas-gathering facility and hub with single point injection of up to 300mmscfd of gas into the OB3 via the KGG tie-in.
Xenergi Ltd had developed a novel approach to providing cleaner energy sources that resulted in the birth of Nigeria’s first inland integrated power, propane and LPG modular plant in partnership with Energia, sited in Ebendo in Delta state, Nigeria.
The Nedogas plant produces high quality LPG and propane, and has the capacity to process up to 25mmscfd (Twenty-five million standard cubic feet per day) of associated natural gas, which is currently being expanded to 60mmscfd.
Chief executive officer of NDCL, Mr. Debo Fagbami, was quoted saying, that with the completion of the KGG facility, the proof-of-concept to readily monetize gas has now been established to the extent of eradicating the pain of seeing an invaluable resource being wasted.
Rather than seeing gas flaring – he sees opportunities to harness the potential of the flare sites from these oilfields which will ultimately convert a “wasting” resource into an economic asset used to generate cleaner energy.
With an estimated 180 billion cubic feet of proven Natural gas reserves, Nigeria has the ninth largest concentration in the world, but sadly enough the country continues to flare significant quantities of Associated Gas.
The choice of gas flaring has relegated the health and environmental well-being of Nigerians to the background for over 60 years. Natural gas remains a relatively clean fossil fuel and represents a viable transition to renewably energy which plays a pivotal role in powering the growth of developing economies like Nigeria.
The KGG facility is set to create hundreds of direct and indirect jobs for indigenes of the host and nearby communities.
NDCL is a 100% Nigerian company with proven interest in creatively innovating and inventing cleaner energy sources for Nigeria’s growth and economic development.
The Nigeria Content Development and Monitoring Board, is responsible for promoting the development of local content capacity and related projects in the Nigeria oil and gas industry.
By Chibisi Ohakah, Abuja
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