*To boost supply for power generation, improve industrial productivity
Nigeria’s Gross Domestic Product (GDP) is set to receive a major boost to the tune of over $240 million per annum within the next four years from the 300 million standard cubic feet per day (mmscfp/d) Kwale Gas Gathering Facility (KGG) in Delta State.
Nedogas Development Company Limited (NDCL) disclosed this yesterday at the inauguration of the KGG and the upgraded Nedogas Processing Plant (NGPP)- two critical gas infrastructure, by the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo.
In the project document shared at the event, the company said the $240 million contribution to the country’s GDP and socio-economic growth would be through trunk line tariffs, liquid product sales to off-takers and other infrastructural tariffs and tolling revenue due to the network and trunk line operators.
Nedogas is a joint venture between Xenergi Limited, a subsidiary of Oildata Energy Group, an indigenous Nigerian oil and gas company, and the Nigerian Content Development and Monitoring Board (NCDMB), in collaboration with the Nigerian Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC).
The company further said the facility would also serve as a provision of alternative gas supply to the Western flank of the Oben-Obiafu-Obrikom (OB3) pipeline to add to the required volume of gas for economic sustainability of the line.
It added that the facility would also lead to total eradication of flared gas and conversion of an environmental pollution into products of value, noting that it equally created a strategic gas gathering hub and injection node for quick access to market for operators to monetise gas.
The document stated: “Immense socio-economic growth potential with contribution of up to $240 million per annum to Nigeria’s Gross Domestic Products (GDP) within the first four years through trunkline tariffs, liquid product sales to off-takers and other infrastructural tariffs and tolling revenue due to the network and trunk line operators.”
Meanwhile, in his keynote speech on the occasion, the minister said the two facilities would also have an impact on a number of other industries, adding that greater supply of gas from the facilities would boost the electricity industry, improve industrial productivity, and offer more environmentally-friendly home energy options.
According to Ekpo, the Kwale Gas Gathering Facility and the Nedogas Plant which were a result of outstanding initiatives from a strategic collaboration between Nedogas Limited and NCDMB represented a significant advancement in the country’s efforts to promote sustainability, energy efficiency, and economic expansion.
The minister said:”The occasion today marks not just a turning point for Delta State, but also a major turning point in Nigeria’s continuous quest to use its abundant natural gas resources for the country’s development.
“As a result of creative engineering, forward-thinking planning, and joint public-private sector efforts, the Nedogas Plant and the Kwale Gas Gathering Facility have been put into operation.
“It emphasises how dedicated the federal government is to increasing gas usage, broadening our energy sources, and lessening our influence on the environment. In addition to being essentially infrastructural developments, the Kwale Gas Gathering Facility and the Nedogas Plant mark a dramatic improvement in our country’s capacity to extract and use natural gas resources properly.”
Through the process of capturing associated gas that would otherwise be vented, the minister stressed that the plant not only reduces the negative impact of gas flares on the environment, but also turns a potentially waste product into a useful resource.
Ekpo further said: “The NCDMB and Nedogas Limited, of which Xenergy Limited is a member, deserve praise for their tireless work and steadfast dedication to this admirable cause. Because of their cooperation, we are here today, a testament to what can happen when business and government collaborate to achieve a common objective.”
In his welcome address, Chairman and Chief Executive Officer of Nedogas Development Company Limited (NDCL) and Kwale Gas Gathering Facility, Mr. Emeka Ene, said the milestones represented not only a significant achievement for Xenergi Limited and its partners but also a pivotal moment in Nigeria’s journey towards harnessing the country’s natural gas resources for economic growth and environmental sustainability.
He mentioned that the unwavering support and collaborative spirit of NCDMB and NNPC had been instrumental in bringing the visionary project to fruition.
He said the KGG Facility, with its impressive capacity of 300MMscfd was a testament to what could be achieved when innovation, determination, and strategic partnerships converged.
By providing infrastructure for gas gathering, compression, injection, and metering, Ene said they were unlocking the potential of natural gas fields in the oil mining lease (OML)56 oil province and offering independent operators a viable pathway to market.
He explained, “Our initial gas injection capacity of 25 MMsefd from the Nedogas Plant in Energia’s Ebendo field, just 3 kilometers away, is a significant start. This facility is not just a hub; it is a beacon of opportunity for the entire region.
“As we gradually ramp up the injected gas volumes, we look forward to receiving additional gas from neighboring fields operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, Chorus Energy, and Midwestern Oil & Gas. Together, we are poised to make the KGG a fully-fledged gas-gathering hub, with a single point injection capacity of up to 300MMsefd into the OB3 gas trunk line.
“This achievement aligns perfectly with Nigeria’s ‘Decade of Gas’ initiative, which aims to leverage our vast natural gas reserves for national development. It also underscores Xenergi’s commitment to turning what was once seen as waste-flared gas—into a valuable economic asset.”
In his remarks, Executive Secretary, NCDMB, Mr. Felix Ogbe, said the project was a major accomplishment of the board’s developmental mandate under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which mandates the agency to assist local contractors and Nigerian companies to develop their capabilities and capacities in the industry.
He noted that the successful completion of the Nedogas Plant and the Kwale Gas Gathering Facility was a testament to the hard work, and close collaboration of all stakeholders involved.
Ogbe pointed out that the achievement was not only a technical milestone but a triumph of partnership and shared vision, adding that it confirmed that the government and the private sector and local communities could collaborate effectively to bring value to the economy.
In his goodwill message, Delta State Governor, Sheriff Oborevwori, represented by his Deputy, Monday Onyeme, said the successful completion of the two gas facilities was a testament to what could be achieved when stakeholders work together towards a common goal.
