The newly commissioned Kwale Gas Gathering Facility (KCG) in Delta State is expected to contribute over $240 million annually to Nigeria’s Gross Domestic Product (GDP) within the next four years through the extraction of 300 million standard cubic feet of gas per day. This information was disclosed by Nedogas Development Company Limited (NDCL) during the commissioning ceremony of the KGG and the enhanced Nedogas Processing Plant (NGPP). The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, who officiated the event, emphasized the significance of these gas Infrastructure projects.
During the event, the company outlined in the project document that the $240 million boost to the country’s GDP and socio-economic development would come from trunk line tariffs, sales of liquid products to off-takers, and Revenue from infrastructure Tariffs and tolls generated by network and trunk line operators. The company also announced that the new facility will provide an additional source of gas supply for the Western section of the Oben-Obiafu-Obrikom (OB3) pipeline, contributing to the necessary volume of gas for the pipeline’s economic sustainability.
Serving as a key hub for gas collection and distribution.
These new facilities not only promise to eliminate flared gas and turn environmental Pollution into valuable products, but it also serves as a key hub for gas collection and distribution, providing operators with a convenient way to profit from gas sales in the market. The minister further highlighted the potential impact of increased gas supply on the Electricity industry, industrial efficiency, and Eco-friendly energy sources. Ekpo noted that these facilities marked a major step forward in promoting sustainability, energy conservation, and Economic Growth in the country.
Ekpo emphasized the plant’s ability to diminish the harmful effects of gas flares on the environment while simultaneously transforming an otherwise wasted product into a valuable resource by trapping associated gas that would otherwise be released. During his opening speech, Mr. Emeka Ene, the Chairman and CEO of NDCL and KGC, expressed that reaching these milestones was a major accomplishment for Xenergi Limited and its collaborators, marking a crucial step in Nigeria’s path to utilizing its Natural Gas reserves for Economic Development and sustainable practices.
Enabling the utilization of natural gas fields.
He praised the Nigerian Content Development & Monitoring Board (NCDMB) and NNPC for their steadfast backing and teamwork which played a crucial role in making the ambitious project a reality. The KGG Facility, boasting a remarkable capacity of 300MMscfd, showcased the power of combining innovation, perseverance, and effective collaborations. Ene stated that the project would enable the utilization of natural gas fields in the Oil Mining Lease (OML) 56 oil province by establishing infrastructure for gas gathering, compression, injection, and metering. This initiative also aimed to provide independent operators with a feasible route to market.
Ene further expressed expectations of more gas from nearby fields controlled by First Hydrocarbon Nigeria (FHN), Pillar Oil, Chorus Energy, and Midwestern Oil and Gas. Together, they aim to establish the KGG as a complete gas-gathering hub, capable of injecting up to 300MMsefd into the OB3 gas trunk line from a single point. Xenergi’s commitment to harnessing Nigeria’s abundant natural gas reserves aligns seamlessly with the country’s ‘Decade of Gas’ initiative, geared towards utilizing this valuable resource for national progress. This achievement signifies a transformation of waste-flared gas into a significant economic asset, showcasing Xenergi’s dedication to sustainable development.
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Mr. Felix Ogbe, the Executive Secretary of NCDMB, highlighted that the project signifies a significant achievement in fulfilling the board’s goal of promoting growth within the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. This Legislation requires the agency to support local contractors and Nigerian businesses in enhancing their skills and resources within the industry. Ogbe emphasized that the accomplishment was more than just a technical feat; it was a testament to successful teamwork and a united purpose. He highlighted that it showcased the ability of the government, private sector, and local communities to work together harmoniously to enhance economic prosperity.