Bayelsa State partners with US firm for gas plant, investment details unclear

The Bayelsa State Government has teamed up with a US energy company to set up a gas processing facility. But the value of this investment is not yet clear. They are waiting for a feasibility study of gas flare sites throughout the state.

The government made this announcement after reaching an agreement with Fulcrum LNG Incorporated on Wednesday. This happened at the first US-Nigeria Governors Government-to-Business Forum on Energy, Mining and Infrastructure in Sugar Land, Texas.

The agreement came after a meeting between Governor Douye Diri and Fulcrum’s CEO, Jesus Bronchalo.

According to a statement from the governor’s spokesperson, Daniel Alabrah, the project will be done in phases. The first phase will focus on collecting and commercialising gas that is currently being flared. This gas is meant to supply Bayelsa’s Independent Power Plant and new industrial areas while cutting down on pollution from gas flaring.

Despite the announcement, the financial details of the Bayelsa project are still not clear. While the government announced a $100 million investment, Mr Bronchalo stated that the actual investment amount would only be known after a thorough field study of the flare sites.

This study will help identify where the facilities should be, how much gas is being flared, and if the issue comes from poor infrastructure or low reinjection capacity.

Mr Bronchalo warned that some flare sites might be too far or not profitable enough for gas gathering. He mentioned that the company would fund the project entirely. If the state government wants to have a stake in it, they would need to invest capital.

He added that it would take about 12 months from the final investment decision to when the project starts operations. He pointed to a similar project in Guyana, valued at around $3 billion, as proof of his company’s experience in gas infrastructure.

Fulcrum LNG was chosen by the Guyanese government in June 2024 to develop gas infrastructure for their natural gas resources. This selection came after a competitive bidding process involving 17 companies.

The Guyana project involves designing, financing, building, and operating gas infrastructure, although it has faced some questions about funding and execution.

Request for More Information

PREMIUM TIMES reached out to Mr Alabrah for more clarity on the $100 million investment, the deal's status, Fulcrum LNG’s financial commitment, the gas flare sites for the project, and the ownership and funding plans.

In a text message, Mr Alabrah said there was no need to worry. He mentioned that Westpaq International, which facilitated the deal, would answer the questions. He also said he would share the inquiry with the CEO of Fulcrum LNG and would provide more information once he got a reply.

As of now, the newspaper has not received a response.

In reaction to the partnership, Mr Diri described it as a win-win deal. He noted that it would help reduce pollution and promote industrial growth. He stated that his government is ready to start the project, reminding everyone that they have about 15 months left in office.

Earlier at the forum, the governor said Bayelsa has about 15 to 20 percent of Nigeria’s proven gas reserves. He added that the state supplies around 60 percent of the gas used by Nigeria LNG Limited in Bonny, Rivers State.

He also pointed out the state’s 203-kilometre Atlantic coastline and the planned Agge Deep Seaport as other investment opportunities.

The forum, organized by Westpaq International with help from the United States Department of Commerce and the US Commercial Service in Houston, included representatives from Bayelsa, Nasarawa, Ogun, and Ondo states, as well as more than 15 American energy, mining, and financial companies.

The Bayelsa delegation featured the governor’s adviser on oil and gas, Daru Owei; the Managing Director of Bayelsa State Electricity Company, Olice Kemenanabo; the Director-General of the Bayelsa Investment Promotion Agency, Patience Abah; and the CEO of Century Energy Group, Ken Etete.