Francis Sadhere writes on efforts by Ebedei Gas Processing Plant in collaboration with the Federal Government to transform Ebedei into a gas processing hub and have gas-based industries and power plants flourish all around it.
In response to the Federal Government’s policy direction, for the commercialization and utilization of natural gas in Nigeria, Gas Train Limited; a special purpose vehicle for developing mid-stream gas infrastructure, is set to create a gas processing hub in Nigeria where gas-based industries and power plants would flourish in one location.
To achieve the above, Gas Train Limited, owned by Owel-Linkso Group in collaboration with ACA – Africa Capital Alliance – and other stakeholders, had signed a Definitive Agreement to develop up to 3Bcf of gas. Thus, Gas Train set out to do multiple projects and create gas processing hubs to stimulate gas utilization across Nigeria.
Chairman of Owel-Linkso Group, Engr. Charles Osezua, during the official commissioning of PNG Gas Limited’s Egbaoma Gas Processing Plant (EGPP) in Ebedei in Ukwani Local Government area of Delta State recently listed some of the benefits and challenges it faced in its quest to create one of the biggest gas hubs in the country.
Engr Osezua explained that the Egbaoma Gas Processing plant is the first to materialise, after spending about $60.00 million adding that the gas processing and fractionation plant, captures about 30 million standard cubic feet of Wet Gas daily from the Platform/Newcross JV flare, to produce domestic grade cooking gas, that is, mixed Liquefied Petroleum Gas (LPG), High Grade Propane, Natural Gas Liquids (NGL) and Lean Gas.
Engr Osezua said, “This plant is the first third-party operated, gas processing plant of its kind in West Africa. Our desire, consistent with the Agreement with the Federal Government is to transform Ebedei into a gas processing hub and have gas-based industries and power plants flourish all around it.”
Speaking on the socio-economic benefits of the Gas Processing Hub, Engr Osezua noted that the plant has been operational since 2016, and has since then delivered 35.00 million litres of LPG, providing cooking fuel for over half a million homes, adding that it has also been part of the growth of the Propane market, producing, 34.00 million litres it also produce 25MMscfd of lean gas which can provide over 100MW of power to the National grid daily.
“Our vision for this place is to grow this location into a 150mmscfd gas processing hub and support gas-based industries by processing gas from nearby fields. This will increase the impact on the Niger Delta, the Nigerian economy and enhance domestic energy security.
“Indeed, in pursuance of this objective, we have been in discussions with a number of producers in this catchment area, signed MOUs, spent funds on expensive studies but often frustrated as producers change their mind, this has been our experience from Eket, through Izombe, to Oben,” Engr Osezua said.
Addressing the Group Managing Director, Nigerian National Petroluem Corporation (NNPC), Engr Maikanti Baru, who attended the opening ceremony of the Gas plant, Engr Osezua said with the presence of NNPC GMD, the company was encouraged that the dream of building multiple plants and turning Ebedei into a gas and industrial hub can still be realised.
Engr Osezua said the plant was a product of Nigerian Engineering ingenuity and local success, adding that It holds a promise, which they believe giving the knowledge and leadership of Engr Baru, can be realised because most of the gas producers are partners of NNPC.
Engr Osezua added that he believed the NNPC, could indeed be a catalyst and bridge the gap between investors and developers like Owel-Linkso Group & Gas Train, and the gas producers; thus the Federal Government’s objective of gas development and utilisation can be realised.
He, therefore, called on Dr Baru to use his office to create the enabling environment for the Nigerian gas industry to structure and operate like the best in the world saying this would see the transformation of the Egbaoma gas processing plant into a hub, processing gas from all the nearby fields.
“The GMD Sir, this gas plant is a proof of concept, bringing together our 25 years of managing the delivery of gas infrastructure in Nigeria to build an independent gas processing plant.
“It looks like a novelty but this is the norm around the world wherein OECD countries most plants are owned and operated by independent gas processors. Thus enabling multiple gas producers access, creating economies of scale for efficiency and price competitiveness,” Engr Osezua noted.
The gas processing hub, according to Engr Osezua would create the economies of scale at the Midstream industry and enable NGPTC to have a more efficient gas gathering delivery into the OB3 pipeline which is in their neighbourhood.
Dr Baru, who could not hide his excitement about the noble idea of creating a gas processing hub in the country, assured Owel-Linkso Group, operators of the Egbaoma Gas Station, that the Federal Government would create the necessary support and the enabling environment that would bring the noble idea to fruition.
He said the plant signpost the nation’s engineering prowess and local content capacity, adding that the plant was the “only onshore third-party gas extraction and fractionation plant of its kind in Nigeria today and a mascot of the new gas revolution.”
Baru urged gas operators that are close to the Egbaoma gas plant to come together to supply gas to the plant to maximise its capacity to commercialise flared gas, stressing that the move will be one of the key steps towards ending gas flare in the country.
He also said steps were on to effectively monetise gas resources for national economic growth, adding “I also wish to use this medium to assure Deltans and Nigerians that the journey to effective monetisation of our vast gas resources for sustainable economic growth and complete end to gas flaring is underway and the future is very bright.”
The NNPC boss commended the promoter of the project, Engr Charles Osezua, Chairman Owel-linkso group for the initiative, noting that this was not his first voyage into gas distribution project in the country.
“This is not your first start-up. You had done it before with Gaslink that started gas distribution in the Ikeja, Lagos area which has spread to Apapa and beyond,” he said.
The gas processing plant has already started creating indirect employment in the neighbourhood with eateries and petty shops already springing up around the plant to serve staff.
The $60 million EGPP is a wholly indigenous gas processing plant with the capacity to process 30 million standard cubic feet of wet gas daily. It offtakes Wet Gas from the Platform Petroleum/Newcross JV Flow Station to produce Liquefied Petroleum Gas (LPG), Propane, Lean Gas and Natural Gas Liquid (NLG).
