…  first phase (12 MMSCF/D modular plant) with interconnection pipeline network of about 4km

…  to commence operations by the end of 2024

…targets abundant CNG for vehicles, decentralized power solutions

Oredola Adeola

Axxela Limited has announced that it has taken Final Investment Decision (FID) for the development of a gas processing plant situated in OML 56, Delta State, South-South Nigeria.

The company, which is one of the leading gas and power portfolio company in Sub-Saharan Africa, made this known in a statement, obtained by Advisors Reports on Tuesday.

According to the company, the strategic investment marks yet another significant stride towards delivering on Axxela’s commitment to deepen domestic gas utilisation in Nigeria.

It said, “The gas processing plant with a total capacity of 50 MMSCF/D will be delivered in phases.

“The first phase will comprise a 12 MMSCF/D modular plant, with an interconnection pipeline network of about 4km alongside other ancillary infrastructure.

“The facility is expected to commence operations by the end of 2024,” the company noted.

Franklin Umole, Director of Business Development, Axxela, speaking on this pivotal landmark said, “As the Federal Government continues to pursue its Decade of Gas and Energy Transition Agenda, we remain a reputable private sector partner with the capacity to develop gas processing plants aimed at tackling the longstanding challenge of gas flaring and commercialisation in Nigeria.

“We are positioning to develop requisite infrastructure for natural gas processing and last mile distribution that creates market access for at least 20% of Nigeria’s gas demand. Over the past two decades, we have been at the forefront of natural gas advocacy, and this project is a further reaffirmation of our dedication to gas infrastructure development and our vision to deliver innovative energy solutions across Nigeria and Africa’’, he concluded.

Advisors Reports gathered that following the Board’s Final Investment Decision, Axxela has therefore executed a long-term feedstock supply agreement with a leading indigenous upstream player and established equipment supply arrangement with world class Original Equipment Manufacturers (OEMs) to assure quality delivery of the project.

Axxela further stated that the design concept was based on a fast and modular expansion, adding that it is partnering with OEMs who have ready stock of equipment for deployment.

It also revealed that the project is strategically cited in OML 56 to serve as a potential hub which upstream players with fields within a 30km radius can partner with to process associated and non-associated gas.

Axxela believes in the potential of this central processing hub having identified two prospective fields and with the partnership with the OEMs, the company envisages that the plant’s output can be scaled up to 50 MMSCF/D within 18 months.

Beyond unlocking economic opportunities, Axxela emphasised that the project can potentially transform gas flaring into a valuable resource that will further ensure a stable, cleaner energy for domestic utilisation thereby contributing significantly to annual CO2 emissions savings and supporting environmental sustainability.

Upon completion, Advisors Reports gathered that processed gas from the facility will be readily available for utilisation across various market segments including Compressed Natural Gas (CNG) for vehicles, feedstock for industries, decentralised power solutions among others.