Nedogas Development Company Limited (NDCL), a Joint Venture concern between Xenergi Limited and NCDMB Capacity Development Intervention Company, have successfully pulled off the construction and technical commissioning of a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection Facility located in the Umusam Community, near Kwale in Delta State.
The KGG Facility a collaborative partnership with the Nigerian Gas Company (NGC), which is a subsidiary of the Nigerian National Petroleum Company (NNPC), is structured to handle stranded gas resources in Nigeria’s OML56 oil province by making available opportunities for independent operators in the area to monetize natural gas from their fields via the gas gathering, compression, injection and metering infrastructure of the KGG for quick access to market.
The Executive Secretary of NCDMB, Engr Simbi Wabote, while emphasizing on the importance of the project expressed his elation at the completion of another project under the series of projects being catalyzed by the Board to realize the Decade of Gas initiative of the Federal Government.
He said, “Our partnership with NDCL to complete the Nedo Gas plant and construct the KGG hub represents another important achievement in our 10-year Strategic Roadmap to utilize local resources, develop in-country capacities, and create job opportunities in line with the mandate of the Board.
“With an estimated 205 trillion cubic feet of proven Natural gas reserves, Nigeria has the ninth largest reserves in the world but has flared significant quantities of Associated gas in the last 60 years. This project provides opportunities to address gas flaring within its captive areas with positive impact on health and the environment.
“Natural gas remains a relatively clean fossil fuel and represents a viable transition to renewably energy which plays a pivotal role in powering the growth of developing economies like Nigeria. The KGG facility is set to create hundreds of direct and indirect jobs for indigenes of the host and nearby communities.”
On his own, Mr Debo Fagbemi, the Managing Director of NDCL, stated that with the completion of the KGG Facility, the proof-of-concept to swiftly monetize gas has now been established to the extent of eradicating the pain of seeing an invaluable resource being wasted.
“Rather than seeing gas flaring, I see opportunities to harness the potential of the flare sites from these oilfields which will ultimately convert a “wasting” resource into an economic asset used to generate cleaner energy.”
The KGG hub, which has been tied into the NGC-owned and operated 48-inch OB-3 gas trunk line, is now completely executed with an initial 30 MMscfd of pipeline quality gas currently being injected into it from the Nedogas Plant located 3km away in Energia’s Ebendo field.
Injected gas volumes are gradually going up.
This project it should be noted stands for a significant milestone in Nigeria’s decade of gas, and symbolizes a big feat in the quest to provide gas into the OB3 trunk line and monetize natural gas resources from the OML 56 producer cluster.
Operators observed that with the successful injection of gas from the Energia-operated Ebendo field into the OB3, the KGG Facility is now poised to receive additional gas from nearby fields including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, Chorus Energy and Midwestern Oil & Gas, all aimed at positioning KGG as a fully-fledged gas-gathering facility and hub with a single-point injection of up to 300 MMscfd of gas into the OB3 via the KGG tie-in.
However, prior to now, NDCL’s precursor, Xenergi Limited, developed a novel approach to providing cleaner energy sources which resulted in the birth of Nigeria’s first inland Integrated Power, Propane and LPG Modular Plant in partnership with Energia, sited in Ebendo in Delta State, Nigeria.
The Nedogas Plant, produces high-quality LPG and propane and has the capacity to process up to 25 MMSCFD (Twenty-Five Million Standard Cubic Feet per day) of associated natural gas, which is currently being expanded to 60 MMSCFD.
NGC is the subsidiary of the NNPC responsible for operating its natural gas infrastructure and transportation.