The project represents a significant milestone in Nigeria’s quest to monetise flared gas in oil exploration, in addition to NCDMB’s strategic investments yielding fruits.

Nedogas Development Company Limited (NDCL), a joint venture between Xenergi Limited and NCDMB Capacity Development Intervention Company, in collaboration with NNPC Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company (NNPC), has completed the construction and technical commissioning of a 300MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility in Umusam Community, near Kwale in Delta State, Nigeria.

Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), will perform the honours, supported by Sheriff Oborevwori, Delta State Governor and Engr. Felix Omatsola Ogbe, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB). The ceremony is slated for June 6, 2024.

The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province, providing the opportunity for independent operators in the area to monetise natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of KGG for quick access to the market.

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KGG, which has been tied into the NGIC-owned and operated 48-inch OB-3 gas trunk line, is now fully commissioned with a gas injection capacity of 50MMscfd, comprising 20MMscfd from the Nedogas Plant located three kilometres away in Energia’s Ebendo field, and another 30MMscfd coming from the Matsogo field, operated by Chorus Energy Limited.

This project represents a significant milestone in Nigeria’s decade of gas initiative as well as a major achievement in the quest to provide gas into the OB3 trunk line, as well as monetise natural gas resources from the OML 56 producer cluster.

With the successful injection of gas from the Energia/Oando JV and the Chorus-operated Ebendo and Matsogo fields 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 and Midwestern Oil & Gas. This will expand the capacity of the KGG facility to 600MMscfd in the second phase.

NCDMB’s equity investment in NDCL is one of the strategic projects geared towards actualising the Federal Government’s aspirations in key areas of the oil and gas industry. Most of NCDMB’s third-party investments are targeted at bringing the Federal Government Decade of Gas programme to life.

The investments align with the Board’s mandate to build capacity and catalyse local projects in the Nigerian oil and gas industry as enshrined under the Nigeran Oil and Gas Industry Content Development (NOGICD) Act.

Prior to now, NDCL’s precursor, Xenergi Limited developed a novel approach to providing cleaner energy sources, which resulted in the birth of Nigeria’s first inland Integrated Power, Propane and LPG Modular Plant in partnership with Energia-Oando JV, located in Ebendo in Delta State.

The Nedogas Natural Gas Fractionation Plant produces high-quality LPG and propane, with the capacity to process over 25MMSCFD of associated natural gas.

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The NCDMB Executive Secretary said the success story of NEDOGAS could be replicated in other oil and gas-producing communities to minimise gas flaring. Their model should be extended to other parts of the country where gas flaring is continuing. They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.

The Managing Director of NDCL, Mr. Debo Fagbami said that with the completion of the first phase of the KGG facility, the proof-of-concept to monetise gas has been established. This could potentially eradicate wastage and environmental degradation associated with oil exploration.

Nigeria is estimated to have 180 billion cubic feet of proven natural gas reserves.

Adewole Ojo

Adewole Ojo is the Editor-in-Chief of Meiza Nigeria. He can be reached on adewole.ojo@fourpoints.ng.