Nedogas Development Company Limited (NDCL), a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company has, successfully completed the construction and technical commissioning of a 300 million standard cubic feet of gas, MMscfd Capacity Kwale Gas Gathering (KGG) and injection Facility located in the Umusam Community, near Kwale in Delta State.
The project was done in partnership with the Nigerian Gas Company Limited (NGC), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.
The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetize natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick access to market.
The KGG hub, which has been tied-in to the NGC-owned and operated 48-inch OB-3 gas trunk line, is now fully commissioned with an initial gas injection capacity of 25 MMscfd from the Nedogas Plant located 3km away in Energia’s Ebendo field. Injected gas volumes are gradually being ramped up.
This project represents a significant milestone in Nigeria’s decade of gas as well as a major achievement in the quest to provide gas into the OB3 trunk line and monetize natural gas resources from the OML 56 producer cluster. 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 single point injection of up to 300 MMscfd of gas into the OB3 via the KGG tie-in.
The Managing Director of NDCL, Mr. Debo Fagbami explained that with the completion of the KGG Facility, the proof-of-concept to readily 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 – he sees 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 Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote expressed his delight to see 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.
NDCL is a 100 per cent Nigerian company with proven interest in creatively innovating and inventing cleaner energy sources for Nigeria’s growth and economic development.
NCDMB is responsible for promoting the development of local content capacity and related projects in the Nigeria oil and gas industry.