benefits of Gas Gathering Facility
The Honorable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has commended the Nigerian Content Development and Monitoring Board (NCDMB) and Nedogas Development Company Limited for initiating and successfully executing the 300 million standard cubic feet (MMscf) Kwale Gas Gathering (KGG) Facility and Nedogas Plant in Umusam community, Delta State.
Speaking at the formal commissioning of the two projects on Thursday, the Minister said the outcome of the strategic collaboration between the two companies represents “a significant advancement in the country’s efforts to promote sustainability, energy efficiency, and economic expansion.”
According to him, “The NCDMB and Nedogas Limited, of which Xenergy Limited is a part, deserve praise for their tireless work and steadfast dedication to this admirable cause,” and that the collaboration “serves as evidence of the effectiveness of our local content policy, which seeks to increase the involvement of Nigerian businesses in the oil and gas industry while promoting local knowledge and capability.”
He said the country’s capacity to extract and use natural gas resources has been significantly boosted with the completion of Nedogas Plant, which will increase domestic supply and export potential, while generating jobs, “fostering industrial expansion, and ensuring energy security.”
The Kwale Gas Gathering Facility, he pointed out, solves a persistent environmental issue as it captures associated gas that would otherwise be vented and thus turn a potentially waste product into a useful resource. The ‘Decade of Gas’ plan of the Federal Government, he observed, is being promoted in the two projects of Nedogas.
In concluding, he enjoined all to note that “It is essential that we keep enhancing the collaborations amongst all parties involved as we progress,” while assuring that “The Ministry of Petroleum Resources (Gas) is still dedicated to helping programs that improve local content, promote investments, develop capacity, and give Nigerians opportunity.”
In his Strategic Partner Remark, the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, said the achievement recorded by the Board and Nedogas represents “a triumph of partnership and shared vision” and “confirms that the Government, the private sector and local communities can collaborate effectively to bring value to the economy.”
He assured that “NCDMB remains committed to fostering such collaborations and creating an enabling environment for investments” and that the Board is equally proud of strategic projects it is developing in partnership with other chain investors in the last 10 years. These, he noted, “are geared towards actualising Federal Government’s policy direction.”
According to the Executive Secretary, the KGG Facility and Nedogas Plant are not only infrastructural achievements but also serve as catalysts for local content development and job creation, among other things.
“Looking ahead,” he reaffirmed, “NCDMB will continue to support similar initiatives that promote local content, drive economic growth, and improve the quality of life of Nigerians.”
The Delta State Governor, Rt. Hon. Sheriff Francis Oborevwori, represented by his Deputy, Chief Monday John Onyeme, expressed happiness that his State is playing host to such an important project which would address the energy needs of Nigerians.
He said the economic importance of the KGG Facility and Nedogas Plant would be best appreciated if placed within the context of the energy crisis in the country. Citing World Bank statistics, he stated that power supply is so poor that companies spend as much as $29 billion yearly to remain in business, and that “the country is ranked as the lowest in terms of access to electricity globally.”
For his part, the Commission Chief Executive (CCE), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, said the inauguration of the cutting-edge Facility and Plant represents a pivotal milestone for NCDMB and Nedogas.
According to the CCE, represented by Chief Ogunnubi Olusegun, Regional Coordinator of the Commission, “By pushing the boundaries of energy production capacity, you are setting a commendable standard for others to aspire to.”
Earlier in his Welcome Address, the Chairman of Nedogas, Mr. Emeka C. Ene, expressed appreciation to partners in the two projects that had contributed to the success being celebrated at the commissioning ceremony. He was particularly impressed with NCDMB’s strategic capacity development initiatives under successive Managements, from Engr. Simbi Wabote to Engr. Felix Omatsola Ogbe.
He said the KGG Facility and Nedogas Plant “align perfectly with the ‘Decade of Gas’ initiative which the Federal Government has continued to promote, noting that the location of the KGG hub, being close to the Delta State Industrial Park, would significantly enhance economic activities and development of the State.
The location, he explained, is also strategic as the Facility would serve as a home, a collection point, to gas from different operating fields. According to him, “All the stranded gas in the area is to be harnessed for the benefit of the people.”
On the wider significance of the KGG Facility, he noted that “This is a modular plant; it can be replicated 10 times over,” and that similar facilities need to be developed to deal with the 140 flare sites in the oil-producing areas.
Key Project Drivers, as the company explains in its official brochure, are Stranded Gas, Proximity to Market, Evacuation Pipeline, Gas Development and Socio-economic Benefits. In regard to the first above the company states, “Natural gas stranded in OML [oil mining lease] 56 (Kwale area) due to absence of evacuation pipeline,” while noting under Gas Development that “A unique gas development opportunity exists for cluster members using shared facilities to leverage on gas network.”
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