FG to commission Kwale gas June 6
By Innocent Raphael
The Federal Government has scheduled the technical commissioning of the 300MMscfd Kwale gas gathering and injection facility in the Niger Delta for June 6, 2024.
This announcement follows a delay caused by a nationwide industrial strike by the Labour Unions.
Located in the Umusam Community near Kwale, Delta State, the facility is a joint venture involving Nedogas Development Company Limited (NDCL), Xenergi Limited, and the Nigerian Content Development and Monitoring Board (NCDMB), in collaboration with the NNPC Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.
The Nigerian Content Development and Monitoring Board announced that the technical commissioning, marking the facility’s successful completion, will be officiated by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. He will be joined by Delta State Governor Rt. Hon. Sheriff Francis Orohwedor Oborevwori and NCDMB Executive Secretary Engr. Felix Ogbe.
The Kwale Gas Gathering (KGG) facility aims to handle stranded gas resources in Nigeria’s OML 56 oil province.
It provides independent operators in the area with the infrastructure to monetize natural gas from their fields through gas gathering, compression, injection, and metering, enabling quick market access. The facility connects to the NGIC-operated 48-inch OB-3 gas trunk line.
The KGG hub’s current gas injection capacity stands at approximately 50 MMscfd, with 20 MMscfd from the Nedogas Plant in Energia’s Ebendo field and 30 MMscfd from Chorus Energy Limited’s Matsogo field. These volumes are being steadily ramped up.
“This project represents a significant milestone in Nigeria’s decade of gas initiative and a major achievement in providing gas to the OB3 trunk line and monetizing natural gas resources from the OML 56 producer cluster,” the NCDMB statement said.
The facility is poised to receive additional gas from nearby fields operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, and Midwestern Oil & Gas. This will position KGG as a central gas-gathering hub capable of injecting up to 300 MMscfd into the OB3 line, with plans to expand to 600 MMscfd in its second phase.
In addition to gas delivery, the KGG will supply the Delta State Economic Zone (DSEZ) through an integrated supply node within the hub. NCDMB’s equity investment in NDCL aligns with the Federal Government’s aspirations to build capacity and catalyze local projects in the oil and gas industry, as mandated by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
NCDMB Executive Secretary Felix Ogbe emphasized that the success of NEDOGAS at Kwale could be replicated in other oil- and gas-producing communities to reduce gas flaring. He expressed the Board’s readiness to continue collaborating with the company to extend this model nationwide.
NDCL Managing Director Debo Fagbami highlighted that the completion of the KGG Facility’s first phase demonstrates a viable model for monetizing gas and eliminating waste.
Despite Nigeria’s substantial natural gas reserves, significant quantities of associated gas are still flared, impacting health and the environment. The government continues to promote natural gas as a cleaner fossil fuel and a transitional energy source crucial for the nation’s development.
The KGG facility is expected to generate hundreds of jobs for local communities, reinforcing the government’s commitment to leveraging natural gas for economic growth and environmental sustainability.
