General
NCDMB Postpones Kwale Gas Facility Commissioning
By Adedapo Adesanya
The Nigerian Content Development Monitoring Board (NCDMB) has postponed the technical commissioning of the 300MMscfd capacity Kwale Gas Gathering and injection facility due to the indefinite nationwide strike directed by the leadership of the organised labour.
In a statement dated Sunday, it said the formal commissioning ceremony of the facility, slated to be performed by the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo on Thursday, June 6, 2024, has been put on hold due to the commencement of the nationwide strike by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
Recall that the leadership of the Organised Labour said there was no going back on the nationwide industrial action on Monday.
“For now, we don’t have the power to call off the strike, tomorrow (Monday) morning, the strike will kick off as we take their (NASS) plea asking us to call off the strike to our various organs,” the TUC president, Mr Festus Osifo, said after a meeting with the leadership of the National Assembly (NASS) on Sunday nigher.
The 300MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility in the Niger Delta, is a project by a Joint Venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company, Nedogas Development Company Limited (NDCL), in collaboration with the NNPC Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.
It was designed to handle stranded gas resources in Nigeria’s OML 56 oil province, by providing the opportunity for independent operators in the area to monetise natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.
The KGG hub, which has been tied into the NGIC-owned and operated 48-inch OB-3 gas trunk line, is now fully commissioned with gas injection capacity, totalling approximately 50 MMscfd comprising 20MMscfd from the Nedogas Plant, located 3km away in Energia’s Ebendo field and another 30 MMscfd coming from the Matsogo field operated by Chorus Energy Limited. Injected gas volumes are gradually and steadily being ramped up.
The project represents a significant milestone in Nigeria’s decade of gas initiative and a major achievement in the quest to provide gas into the OB3 trunk line and monetise natural gas resources from the OML 56 producer cluster.
With the successful injection of gas from the Energia/Oando JV and the Chorus-operated Ebendo and Matsogo fields respectively into the OB3, the KGG Facility will receive additional gas from nearby fields including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, and Midwestern Oil & Gas, all aimed at positioning KGG as a fully-fledged gas-gathering facility and hub with single point injection of up to 300 MMscfd of gas into the OB3 via the KGG tie-in.
The plan is to expand the capacity of the KGG facility to 600 MMscfd in the second phase.
In addition to the gas delivery obligations of the facility, the KGG will also be supplying the Delta State Economic Zone (DSEZ) from an integrated supply node within the manifold at the hub.
Speaking about the project, the Executive Secretary of NCDMB, Mr Felix Ogbe, enthused that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil- and gas-producing communities to minimise gas flaring. He declared the board’s readiness to continue collaborating with the company.
“Their model should be extended to other parts of the country where gas flaring is continuing. They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.”
The Managing Director of NDCL, Mr Debo Fagbami, explained that with the completion of the first phase of the KGG facility, the proof-of-concept to readily monetise gas has now been established to the extent of eradicating the pain of seeing an invaluable resource being wasted.
Rather than just being concerned about ending gas flaring, Mr Ogbe said the project presents opportunities to harness the potential of the flare sites from these oilfields, which according to him, will ultimately convert a “wasting” resource into an economic asset used to generate cleaner energy.
With an estimated 180 billion cubic feet of proven natural gas reserves, Nigeria has the ninth-largest concentration in the world.
However, the country continues to flare significant quantities of its associated gas, which has relegated the health and environmental well-being of Nigerians to the background for over 60 years.
Mr Ogbe added that the KGG facility will create hundreds of direct and indirect jobs for indigenes of the host and nearby communities.
By Dipo Olowookere
A $15 million debt facility has been obtained by Watt Renewable Corporation from the AfriGreen Debt Impact Fund to finance hybrid solar power plants to be built and operated by the former, especially in Nigeria.
WATT intends to use the projects to serve commercial and industrial clients in Nigeria, particularly in the telecommunication and financial services sectors.
By integrating solar hybrid solutions, the firm aims to significantly reduce diesel consumption and CO2 emissions, enabling its clients to achieve substantial energy cost savings while promoting environmental sustainability.
As a pioneer in renewable energy solutions, WATT continues to drive innovation in Nigeria’s energy sector.
The company’s robust roll-out plan includes deploying hundreds of hybrid solar power sites nationwide to meet the growing energy demands of commercial & industrial clients.
This strategic expansion aligns with WATT’s vision to revolutionize energy access across Africa, enabling sustainable development and reducing reliance on fossil fuels.
The funds from AfriGreen provide the critical capital needed to accelerate WATT’s ambitious projects, strengthening its market position and empowering businesses with reliable and affordable energy solutions.
Business Post gathered that to mitigate the currency risk for WATT in the event of devaluation of the Nigerian Naira, AfriGreen is offering a local currency facility that matches the payment structure of the power purchase agreements.
“We are thrilled to partner with AFRIGREEN on this transformative journey to expand reliable and sustainable energy solutions across Africa.
“With this support, it enables us to accelerate our shared mission of providing hybrid solar power to businesses, reducing carbon emissions, and supporting economic growth while enhancing energy security for our clients,” the Managing Director of WATT, Mr Oluwole Eweje, said.
“We are delighted to support WATT in rolling out hundreds of hybrid sites across the country.
“This represents another key transaction for AFRIGREEN in Nigeria. The combination of high energy prices, good solar irradiation, and strong demand from industrial and commercial energy users makes this market particularly attractive for companies like WATT.
“By leveraging these favourable market conditions alongside WATT’s exceptional operational performance and a well-structured financing solution, we are setting the stage for a strong and lasting business partnership,” the Managing Director of AfriGreen, Mr Alexandre Gilles, stated.
By Adedapo Adesanya
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has denied issuing a directive that gas supply to power generating companies (GenCos) be halted.
In a statement on Wednesday, the authority also denied instructing wholesale gas suppliers to stop further supply of gas to companies due to failure in payment obligations.
The NMDPRA described reports stating that it has directed the stoppage of gas supply to GenCos over N2 trillion debt as “false and completely unfounded”.
“It has absolutely no bearing on the information shared at a recent stakeholders’ engagement held in Lagos between the Authority, the OPTS, IPPG and other stakeholders in the oil and gas industry,” the NMDPRA said.
“The purpose of the engagement was to sensitise stakeholders on the requirements, opportunities and benefits associated with the implementation of the wholesale supply license as provided by sections 142 and 197 of the Petroleum Industry Act (PIA) 2021.
“It was a follow-up to an earlier stakeholder engagement held at the NMDPRA corporate headquarters in Abuja on November 27, 2024.
“The Authority wishes to reassure all our stakeholders and indeed the general public that at no time was the false statement made at that event and anywhere else, and are advised to completely disregard the publication as every effort is being made to ensure that the supply and distribution of natural gas and petroleum products to end users is seamless and unabated as we head into the festive season and indeed all through the coming year 2025.”
Recall that Nigeria’s national grid experienced another collapse on Wednesday, the 11th time in 2024 as Gencos couldn’t generate enough power, compounding issues facing the Nigerian power sector.
This was the first time in over a month as the last time the nation witnessed a nationwide shutdown in electricity supply was on November 7, 2024.
Before then, the country was experiencing an incessant collapse of the grid, which prompted the federal government to set up a team to address the issue.
By Aduragbemi Omiyale
Nigeria is currently experience a cut in power supply after the national grid collapsed for the 11th time in 2024.
This is the first time in over a month as the last time the nation witnessed a nationwide shut down in electricity supply was on November 7, 2024.
Before then, the country was experiencing an incessant collapse of the grid, which prompted the federal government to set up a team to address the issue.
However, just when Nigerians were thinking they will not witnessed another national grid collapse in the year, it issue reared its ugly head again.
On Wednesday afternoon, most of the energy distribution companies suffered power outage, prompting them to inform their customers of the situation.
One of the DisCos, Ikeja Electric Plc, in a message to electricity consumers under its franchise area, said, “Please be informed that we experienced a system outage today, December 11, 2024, at about 13:32 hours affecting supply within our network.
“Restoration of supply is ongoing in collaboration with our critical stakeholders. Kindly bear with us.”
Recall that on Tuesday, in a report, Google listed national grid as one of the top trending searches by Nigerians this year.
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