US firm to build $100m Bayelsa gas processing plant

The government of Bayelsa State and US energy firm Fulcrum LNG Incorporated have entered into a partnership to construct a multi-million dollar gas processing plant in the Nigerian state of Bayelsa. The agreement was finalized at the conclusion of the inaugural US-Nigeria Governors G2B Forum on Energy, Mining and Infrastructure, which took place at the Sweet Water Country Club in Texas.

The forum, organized by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service, brought together representatives from various American energy, mining, and financial firms, including Honeywell, KBR, and Worley.

The project will be carried out in phases, starting with the gathering and commercialization of flared gas to power the state's Independent Power Plant and emerging industrial clusters while mitigating environmental pollution. Subsequently, a comprehensive gas monetization and development plan will be implemented to capitalize on Bayelsa State's substantial gas reserves.

Fulcrum LNG CEO, Mr. Jesus Bronchalo, explained that the governor's presentation at the roundtable piqued the company's interest, stating that the partnership holds promising prospects for both parties.

Fulcrum will conduct a thorough field study of Bayelsa's flare sites to determine the suitable technology and gathering infrastructure. The company has previously undertaken a similar project in Guyana valued at approximately $3 billion, and the investment size for Bayelsa will be determined following feasibility studies and is expected to surpass the scale of their South American operations. The entire process, from feasibility to commissioning, is anticipated to take about 12 months.

Bayelsa Governor, Douye Diri, welcomed the deal as a win-win situation, emphasizing the administration's commitment to initiating the project promptly. The governor highlighted the importance of the project in environmental protection and industrialization. Additionally, Governor Diri pointed out that Bayelsa State accounts for an estimated 15-20% of Nigeria's proven gas reserves and supplies about 60% of the gas utilized by the NLNG Company in Bonny, Rivers State.

The state boasts the longest Atlantic coastline in Nigeria, stretching 203 kilometers, with direct access to the Gulf of Guinea. He also mentioned that Bayelsa has the deepest natural seaport in Nigeria, the Agge Deep Seaport, which does not require dredging and serves as the natural first port of call for vessels entering the country.