• Wednesday, July 24, 2024
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Frazenergy, Galileo sign deal to repurpose flared gas for Industry

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FrazEnergy Ltd (a subsidiary of Oilserv) and Galileo Technologies (Argentina tech giant) have signed a landmark deal to convert captured flared gas into usable fuel for electricity generation, fertiliser and methanol production as well as feedstock for local industries.

According to findings by BusinessDay project is expected to revolutionise Nigeria’s energy sector and position the country as a major player in the global gas market.

At the signing ceremony in Nigeria’s federal capital, Osi Okonkwo, general manager of FrazEnergy said the LNG option remained critical to capturing gas flare and addressing the transport challenges in lifting liquified petroleum gas (LPG) in the country.

Read also: Nigeria tops as global gas flaring surges to 5-year high despite ban push

The deal, signed with a global gas infrastructure company, Galileo Technologies, would enable Nigeria to implement the zero flaring target while reducing the country’s carbon footprint.

The new deal, Okonkwo said, would see the development of five million cubic feet that would have been flared. He added that the gas plant from the deal would bring onboard LNG, propane and LPG.

Okonkwo, noted that the company, a subsidiary of Oilserv, which is working on the Ajaokuta-Kaduna-Kano (AKK) pipeline, would prioritise its projects including prioritising captive power generation for the manufacturing sector.

He said there was a need to bridge the infrastructure gap to meet the projected goals of the country’s gas plan.

According to him, gas plants and major pipelines, such as the South-North gas pipeline, which originates from Qua Iboe, pass through Obio/Akpor, Enugu, and connect to the Ajaokuta-Kaduna-Kano (AKK) pipeline, remained critical.

He said the plan, which is a key component of the gas master plan, spans approximately 800 kilometers, adding that the country needs other pipelines as part of the gas master plan.

Read also: Nigeria loses $1.4bn to unremitted gas royalties, flare penalties NEITI

“The investment required for these projects is significant, ranging from $5 to $10 billion to complete the Nigerian gas transmission infrastructure. Additionally, the gas processing sector would need a similar investment, bringing the total to an estimated $15 to $20 billion to close the gaps in gas processing and fully implement the Nigerian gas master plan.

“Moreover, distribution lines are also necessary. For example, the South-North gas pipeline will pass through major cities like Enugu and Ajaokuta. Building and investing in these distribution networks is crucial. Therefore, the overall investment required for these projects could easily fall within this range,” Okonkwo said.