From Musa Muhammad Kutama, Calabar
The Bayelsa State Government and US-based energy company, Fulcrum LNG Incorporated, have signed a partnership agreement to establish a multi-million-dollar gas gathering and processing facility in Bayelsa State.
According to a press statement issued by Daniel Alabrah, Chief Press Secretary to the Governor of Bayelsa State, the agreement was reached on Wednesday at the conclusion of the two-day inaugural US-Nigeria Governors Government-to-Business (G2B) Forum on Energy, Mining and Infrastructure held at Sweetwater Country Club, Sugar Land, Texas.
The forum, facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service in Houston, brought together the Governor of Bayelsa State, representatives of Nasarawa, Ogun and Ondo states, as well as more than 15 leading American energy, mining and financial companies, including Honeywell, KBR, Worley, Lummus Technology and VGas.
The project will be implemented in phases, beginning with the gathering and commercialisation of flared gas to generate power for the state’s Independent Power Plant and emerging industrial clusters, while reducing environmental pollution.
This will be followed by a comprehensive integrated gas monetisation and development plan aimed at harnessing the state’s vast gas reserves.
Speaking after a closed-door meeting with Governor Douye Diri, Fulcrum LNG Chief Executive Officer, Mr Jesus Bronchalo, said the governor’s presentation at the roundtable had attracted his company’s interest, describing the partnership as an opportunity with significant prospects for both parties.
Bronchalo disclosed that Fulcrum LNG would commence a comprehensive field study of gas flare sites across Bayelsa State to determine the appropriate technology and infrastructure required for gas gathering.
He noted that a similar project being executed by the company in Guyana was valued at approximately $3 billion, adding that the investment required for the Bayelsa project would be determined after the feasibility study and could exceed the scale of its South American operations.
“From Final Investment Decision (FID) to commissioning will take about 12 months,” Bronchalo said.
He explained that the company would first assess the locations of the flare sites and establish the reasons behind the continued gas flaring.
“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.
According to him, some flare sites may be too remote or economically unviable for gas gathering, stressing that the company would determine whether the problem resulted from inadequate infrastructure for transporting gas or a lack of reinjection capacity.
He added that Fulcrum LNG’s investment model involved providing 100 per cent of the project funding, while the government could acquire an equity stake by contributing the corresponding capital.
Responding, Governor Douye Diri described the agreement as a win-win partnership and assured the company of his administration’s commitment to ensuring its immediate commencement, noting that his government had approximately 15 months remaining in office.
The governor said the project was crucial to environmental protection and industrial development in the state.
“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 roundtable, Governor Diri stated that 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 (NLNG) in Bonny, Rivers State.
He also highlighted the state’s 203-kilometre Atlantic coastline, describing it as the longest in Nigeria, with direct access to the Gulf of Guinea.
The governor further highlighted the potential of the Agge Deep Seaport, describing it as a natural deep seaport that requires no dredging and could serve as a major port of entry for vessels arriving in Nigeria.
The facilitator of the forum and Chief Executive Officer of Westpaq International, Mr Samuel Diminas, expressed satisfaction with the outcome of the discussions, commending Senator Ben Murray-Bruce for his contributions towards the success of the forum.
Diminas assured that Westpaq would continue to engage all parties to ensure the prompt commencement of the project, noting that the investment offered significant economic opportunities for Bayelsa State and Nigeria.
Members of Governor Diri’s delegation included his Honourary Adviser on Oil and Gas, Dr Daru Owei; Managing Director of Bayelsa State Electricity Company Limited, Engr. Olice Kemenanabo; Director-General of the Bayelsa Investment Promotion Agency, Patience Abah; former Secretary to the Bayelsa State Government, Mr Kemela Okara; and Chief Executive Officer of Century Energy Group, Chief Ken Etete.