The Bayelsa State Government and a US-based energy company, Fulcrum LNG Incorporated, have sealed a partnership to build a $100 million gas gathering and processing facility in Bayelsa State.
The agreement was reached Wednesday at the close of the two-day inaugural US-Nigeria Governors G2B Forum on Energy, Mining and Infrastructure, held at the Sweet Water Country Club in Sugar Land, Texas.
The Forum, facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service, Houston, brought together the Governor of Bayelsa State and representatives of Nasarawa, Ogun and Ondo States, alongside over 15 top American energy, mining and financial firms including Honeywell, KBR, Worley, Lummus Technology, VGas, and others.
The project will be executed in phases, beginning with gathering and commercialising flared gas to power the state’s Independent Power Plant and emerging industrial clusters, while curbing environmental pollution.
This will be followed by a comprehensive integrated gas monetisation and development plan to harness 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 roundtable presentation sparked his company’s interest, describing the partnership as holding great prospects for both parties.
Bronchalo said Fulcrum would begin a comprehensive field study of Bayelsa’s flare sites to determine the appropriate technology and gathering infrastructure.
He noted that a similar project the company is executing in Guyana is valued at about $3 billion, adding that the investment size for Bayelsa would be determined after the feasibility study and is likely to exceed the scale of its South American operations.
“From FID to commissioning will take about 12 months,” Bronchalo said.
Responding, Governor Douye Diri described the deal as a win-win and assured his government of its commitment to immediate commencement, noting the administration had about 15 months left in office.
Governor Diri said the project was critical to both environmental protection and industrialisation.
Governor Diri noted that Bayelsa holds an estimated 15-20 per cent of Nigeria’s proven gas reserves and supplies about 60 per cent of the gas utilised by the NLNG Company in Bonny, Rivers State.
He added that the state has the longest Atlantic coastline in Nigeria at 203km, with direct access to the Gulf of Guinea.
He also spoke about the Agge Deep Seaport as a natural deep seaport that requires no dredging, describing it as Nigeria’s deepest natural port and the natural first port of call for vessels entering the country.
Facilitator of the Forum and CEO of Westpaq International, Mr Samuel Diminas, expressed delight at the outcome, commending Senator Ben Murray-Bruce for his role in ensuring the Forum’s success.
Diminas affirmed that Westpaq would continue to interface with all parties to ensure prompt commencement, adding that the project holds immense economic opportunities for Bayelsa and Nigeria.
Governor Diri’s delegation included the Honorary Adviser on Oil and Gas, Dr Daru Owei; Managing Director of Bayelsa State Electricity Company Limited, Engr. Olice Kemenanabo, Director-General, Bayelsa Investment Promotion Agency; Patience Abah, former Secretary to the Bayelsa State Government; Mr Kemela Okara; and Chief Ken Etete, Chief Executive Officer, Century Energy Group.
