Bayelsa State Government has signed a partnership agreement with a United States-based energy company, Fulcrum LNG Incorporated, to develop a $100 million gas gathering and processing facility aimed at reducing gas flaring and boosting electricity supply in the state.
Gatekeepers News reports that the agreement was reached on Wednesday at the end of the inaugural US-Nigeria Governors Government-to-Business (G2B) Forum on Energy, Mining and Infrastructure held in Sugar Land, Texas, United States.
The project will be implemented in phases, beginning with the gathering and commercialisation of gas currently being flared. The gas is expected to supply Bayelsa’s Independent Power Plant and emerging industrial clusters, while reducing environmental pollution.
The second phase will involve an integrated gas monetisation and development plan to harness the state’s natural gas reserves.
Speaking after a meeting with Bayelsa State Governor, Douye Diri, Fulcrum LNG Chief Executive Officer, Jesus Bronchalo, said the company would conduct a comprehensive assessment of gas flare sites across the state to determine the technology and infrastructure required for the project.
Bronchalo, however, said the actual investment requirement would be determined after the feasibility study, noting that some flare sites might be too remote or economically unviable for gas gathering.
He added that the company would provide the investment capital, while the state government would only contribute financially if it wanted an equity stake in the project.
The company projected that the period between the final investment decision and commissioning would take approximately 12 months.
Reacting to the agreement, Governor Diri described the partnership as a win-win arrangement, saying it would help address environmental pollution and support the state’s industrialisation drive.
He also expressed his administration’s commitment to facilitating the commencement of the project, noting that it had about 15 months remaining in office.
The governor had earlier disclosed at the investment forum that Bayelsa accounts for an estimated 15 to 20 per cent of Nigeria’s proven gas reserves and supplies about 60 per cent of the gas used by Nigeria LNG Limited in Bonny, Rivers State.
The forum was facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service in Houston. It brought together representatives of Bayelsa, Nasarawa, Ogun and Ondo states, alongside more than 15 American energy, mining and financial companies.
However, the proposed $100 million investment figure remains subject to clarification, as the company’s chief executive said the actual project cost would only be established after the feasibility assessment.
