CONSTRUCTION OF 300MMscfd KGG FACILITY SET TO BE COMMISSIONED IN NIGERIA

Nedogas Development Company Limited (NDCL), a joint venture between Xenergi Limited and NCDMB Capacity Development Intervention Company, in collaboration with the NNPC Gas Infrastructure Company (NGIC), has successfully completed the construction and technical commissioning of a 300 MMscfd capacity Kwale Gas Gathering (KGG) and injection facility. The formal commissioning ceremony is set to take place on June 6, 2024, officiated by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, with the support of Delta State Governor Sheriff Francis Orohwedor Oborevwori and NCDMB Executive Secretary Felix Omatsola Ogbe.

Located in the Umusam community near Kwale, Delta State, Nigeria, the KGG facility is designed to manage stranded gas resources in Nigeria’s OML56 oil province. The facility enables independent operators to monetize natural gas from their fields through gas gathering, compression, injection, and metering infrastructure. The KGG hub, linked to the NGIC-operated 48-inch OB-3 gas trunk line, has a gas injection capacity of approximately 50 MMscfd, sourced from the Nedogas Plant in Energia’s Ebendo field and the Matsogo field operated by Chorus Energy Limited. The KGG is now positioned to receive additional gas from nearby fields, aiming to achieve a single-point injection capacity of up to 300 MMscfd of gas into the OB3 trunk line.

The project represents a significant milestone in Nigeria’s “decade of gas” initiative and supports the Federal Government’s goals of increasing gas utilization and reducing flaring. The KGG facility will also supply the Delta State Economic Zone (DSEZ) and is expected to expand its capacity to 600 MMscfd in its second phase.

NDCL is a 100% Nigerian company focused on providing cleaner energy solutions and advancing local projects in the oil and gas industry. The NCDMB’s investment in NDCL aligns with the Federal Government’s Decade of Gas program, aiming to build capacity and catalyze local projects as mandated by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

Prior to the KGG facility, NDCL’s precursor, Xenergi Limited, established Nigeria’s first inland Integrated Power, Propane, and LPG Modular Plant in partnership with the Energia-Oando JV in Ebendo, Delta State. This plant produces high-quality LPG and propane, processing over 25 MMSCFD of associated natural gas, with plans to expand to 60 MMSCFD.

NCDMB Executive Secretary highlighted the potential for replicating the success of NEDOGAS in other oil- and gas-producing communities to minimize gas flaring. NDCL Managing Director Debo Fagbami emphasized the importance of monetizing gas to transform it from a wasted resource into an economic asset for cleaner energy generation.

With Nigeria holding the ninth largest proven natural gas reserves in the world, the KGG facility plays a crucial role in utilizing this resource efficiently, reducing gas flaring, and contributing to economic and environmental benefits. The project is expected to create hundreds of direct and indirect jobs for the local communities, enhancing their socio-economic development.

SOURCE: Premium Times