US Firm to Build $100m Gas Processing Plant in Bayelsa - THISDAYLIVE

A United States-based energy company, Fulcrum LNG Incorporated, has entered into a partnership with the Bayelsa State Government to build a $100 million gas gathering and processing facility in the state.

The agreement was sealed on Wednesday at the conclusion of the inaugural two-day US-Nigeria Governors Government-to-Business (G2B) Forum on Energy, Mining and Infrastructure held at Sweet Water Country Club, Sugar Land, Texas.

The project, according to a statement by the Chief Press Secretary to Governor Douye Diri, Daniel Alabrah, is expected to commence with the gathering and commercialisation of gas currently being flared in the state.

The initial phase will supply gas to power Bayelsa’s Independent Power Plant and emerging industrial clusters, while reducing environmental pollution associated with gas flaring.

This will be followed by an integrated gas monetisation and development plan aimed at harnessing the state’s gas reserves.

Speaking after a closed-door meeting with Diri, Fulcrum LNG Chief Executive Officer, Jesus Bronchalo, said the governor’s presentation at the business roundtable attracted the company’s interest in the proposed partnership.

Bronchalo said the company would commence a comprehensive field study of gas flare sites across Bayelsa to determine the appropriate technology and infrastructure required for the project.

He disclosed that Fulcrum was executing a similar project in Guyana valued at about $3 billion, adding that the scale of investment required in Bayelsa would be determined after the feasibility study.

According to him, the proposed investment could exceed the scale of the company’s South American operations.

“From FID to commissioning will take about 12 months,” Bronchalo said.

He explained that the company would first establish the locations of the flare sites and identify the reasons for the continued flaring before determining the most viable approach to gathering and processing the gas.

“First, we need to understand the problem on the ground – where those facilities are and why gas is being flared. We will come to Bayelsa to understand the magnitude,” he said.

Bronchalo noted that some flare sites might be too remote or economically unviable for gas gathering, stressing that the company would assess whether the problem resulted from inadequate transportation infrastructure or insufficient reinjection capacity.

He also disclosed that Fulcrum would provide 100 per cent of the investment capital, adding that the state government would only contribute capital if it wished to acquire an equity stake in the project.

Responding, Diri described the partnership as a win-win arrangement and assured the company of his administration’s commitment to ensuring its immediate commencement.

The governor, who noted that his administration had about 15 months remaining in office, said the project was important to the state’s environmental protection and industrialisation objectives.

“Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive,” he said.

Earlier, during his presentation at the business roundtable, Diri said Bayelsa accounted for an estimated 15 to 20 per cent of Nigeria’s proven gas reserves and supplied about 60 per cent of the gas utilised by the Nigeria LNG Limited in Bonny, Rivers State.

He also highlighted the state’s geographical and maritime advantages, noting that Bayelsa had Nigeria’s longest Atlantic coastline, estimated at 203 kilometres, with direct access to the Gulf of Guinea.

The governor further promoted the proposed Agge Deep Seaport, describing it as a natural deep seaport that would require no dredging and could serve as a first port of call for vessels entering Nigeria.

The forum was facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service, Houston.

It brought together governors and representatives from Bayelsa, Nasarawa, Ogun and Ondo States, alongside more than 15 American energy, mining and financial companies, including Honeywell, KBR, Worley, Lummus Technology and VGas.

The Chief Executive Officer of Westpaq International, Samuel Diminas, expressed satisfaction with the outcome of the engagement, commending Senator Ben Murray-Bruce for his role in ensuring the success of the forum.

Diminas said Westpaq would continue to engage the parties to ensure the prompt commencement of the project, adding that the partnership offered significant economic opportunities for Bayelsa and Nigeria.

Members of Diri’s delegation included his Honourary Adviser on Oil and Gas, Daru Owei; Managing Director of Bayelsa State Electricity Company Limited, Olice Kemenanabo; Director-General of Bayelsa Investment Promotion Agency, Patience Abah; former Secretary to the State Government, Kemela Okara; and Chief Executive Officer of Century Energy Group, Ken Etete.

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