… Diri says project will curb gas flaring, reduce pollution and support industrialisation
The Bayelsa State Government has entered into a partnership with US-based energy company, Fulcrum LNG Incorporated, to develop a gas-gathering and processing facility aimed at reducing gas flaring, improving electricity supply and supporting industrial growth.
A statement on Thursday by Diri’s Chief Press Secretary, Daniel Alabrah, said the agreement was reached on Wednesday at the conclusion of the inaugural US-Nigeria Governors Government-to-Business (G2B) Forum on Energy, Mining and Infrastructure in Sugar Land, Texas.
The proposed project will be implemented in phases, beginning with the recovery and commercialisation of gas currently being flared at oil and gas facilities across the state. The recovered gas is expected to supply Bayelsa’s Independent Power Plant and emerging industrial clusters.
A broader gas monetisation programme is also planned to harness the state’s natural gas resources.
Speaking after a meeting with Governor Douye Diri, Fulcrum LNG Chief Executive Officer, Jesus Bronchalo, said the governor’s presentation at the forum had drawn the company’s interest in Bayelsa’s gas development opportunities.
Bronchalo disclosed that the company would undertake a comprehensive field assessment of gas flare sites in the state to establish the volume of gas available, the infrastructure required and the most suitable technology for gathering and processing it.
He said the assessment would determine whether the flaring resulted from inadequate transportation infrastructure or insufficient capacity to reinject the gas into reservoirs.
According to him, some flare sites might be too remote or commercially unviable to justify gas-gathering infrastructure, making a detailed feasibility study necessary before investment decisions are taken.
He said Fulcrum typically provides full project financing, adding that the government could acquire an equity stake by contributing capital for its proposed share.
“The way we do it, we invest 100 percent. If government wants equity, then it brings capital for that portion,” Bronchalo said.
He also disclosed that a similar project being undertaken by the company in Guyana was valued at about $3 billion, while the size of the proposed Bayelsa investment would be determined after the feasibility study.
“From FID to commissioning will take about 12 months,” he said, referring to the period between the final investment decision and the commissioning of the facility.
Responding, Governor Diri described the partnership as beneficial to both parties and said his administration was committed to facilitating the project’s commencement.
He said the investment was important not only for the state’s energy and industrial development but also for addressing the environmental consequences of gas flaring on host communities.
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“Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive,” Diri said.
The governor had earlier told participants at the forum that Bayelsa accounted for an estimated 15 to 20 per cent of Nigeria’s proven gas reserves and supplied about 60 per cent of the gas used by the Nigeria LNG Limited in Bonny, Rivers State.
He also highlighted the state’s 203-kilometre Atlantic coastline and direct access to the Gulf of Guinea as strategic advantages for energy and maritime investments.
Diri further presented the proposed Agge Deep Seaport as an investment opportunity, describing it as a natural deep-water port that would require no dredging.
The two-day forum was facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service in Houston.
It brought together the Bayelsa governor and representatives of Nasarawa, Ogun and Ondo states, as well as more than 15 American companies operating in the energy, mining and financial sectors. Participating firms included Honeywell, KBR, Worley, Lummus Technology and VGas.
Westpaq International Chief Executive Officer and forum facilitator, Samuel Diminas, welcomed the outcome of the engagement, saying his organisation would continue working with the parties to facilitate the project’s commencement.
He also commended Senator Ben Murray-Bruce for his contribution to the organisation of the forum, adding that the proposed investment could create economic opportunities for Bayelsa and Nigeria.
Diri’s delegation included his Honourary Adviser on Oil and Gas, Dr Daru Owei; Managing Director of Bayelsa State Electricity Company Limited, Engr Olice Kemenanabo; Director-General of the Bayelsa Investment Promotion Agency, Patience Abah; former Secretary to the State Government, Kemela Okara; and Chief Executive Officer of Century Energy Group, Chief Ken Etete.
The proposed development is expected to undergo technical and commercial assessments before the final investment decision is taken.