U.S. Firm to Build $100m Gas Processing Plant in Bayelsa
The Bayelsa Government and US-based energy company Fulcrum LNG Incorporated on Thursday sealed a partnership to build a multi-million-dollar gas-gathering and processing facility in the state.
This is contained in a statement signed by Mr Daniel Alabrah, Chief Press Secretary to the governor. According to the statement, the agreement was reached at the close of the two-day inaugural US-Nigeria Governors G2B Forum on Energy, Mining and Infrastructure held at the Sweet Water Country Club, Sugar Land in Texas.
He said that the forum, facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service, Houston, brought together the governor of Bayelsa and representatives of Nasarawa, Ogun and Ondo states, alongside over 15 top American energy, mining and financial firms including Honeywell, KBR, Worley, Lummus Technology, VGas, and others.
“The project will be executed in phases, beginning with the gathering and commercialisation of flared gas to power the state’s Independent Power Plant and emerging industrial clusters, while curbing environmental pollution.
“This will be followed by a comprehensive integrated gas monetisation and development plan to harness the state’s vast gas reserves.”
Speaking after a closed-door meeting with Gov. Douye Diri, Fulcrum LNG Chief Executive Officer Mr Jesus Bronchalo said the governor’s roundtable presentation sparked his company’s interest, describing the partnership as offering strong prospects for both parties.
“Bronchalo said Fulcrum will begin a comprehensive field study of Bayelsa’s flare sites to determine the appropriate technology and gathering infrastructure.”
He noted that a similar project the company is executing in Guyana is valued about 3 billion dollars, adding that the investment size for Bayelsa would be determined after the feasibility study and is likely to exceed the scale of its South American operations.
“From FID to commissioning will take about 12 months.
“First, we need to understand the problem on ground – where those facilities are and why gas is being flared. We will come to Bayelsa to understand the magnitude.
“Some flares may be so remote or uneconomic that gathering may not be viable. The key question is whether the flaring is due to lack of infrastructure to move the gas or lack of re-injection capacity.
“Once we know that, we can determine the best option. The way we do it, we invest 100 per cent. If government wants equity, then it brings capital for that portion.”
Responding, Diri described the deal as a win-win and assured of his government’s commitment to immediate commencement, noting the administration had about 15 months left in office.
He said the project remained critical to both environmental protection and industrialisation.
“Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive.”
Earlier, during his roundtable presentation, Diri noted that Bayelsa holds an estimated 15-20 per cent of Nigeria’s proven gas reserves and supplies about 60 per cent of the gas NLNG uses at its Bonny, Rivers, facility.
He added that the state has Nigeria’s longest Atlantic coastline at 203km, with direct access to the Gulf of Guinea. He also spoke about the Agge Deep Seaport, a natural deep seaport that requires no dredging, describing it as Nigeria’s deepest natural port and the first port of call for vessels entering the country.
Facilitator of the forum and CEO of Westpaq International, Mr Samuel Diminas, expressed delight at the outcome and commended Sen. Ben Murray-Bruce for his role in ensuring the forum’s success.
Diminas affirmed that Westpaq would continue to engage with all parties to ensure a prompt start, adding that the project offers immense economic opportunities for Bayelsa and Nigeria. Foreign Investors Pivot into US Dollar Bonds, Yields Ease
