US Company to Build $100 Million Gas Plant in Bayelsa

The Bayelsa State Government has teamed up with Fulcrum LNG Incorporated, a US energy firm, to set up a gas gathering and processing plant in Bayelsa State.

They signed the agreement on Wednesday at the US-Nigeria Governors G2B Forum on Energy, Mining, and Infrastructure. This event took place at the Sweet Water Country Club, Sugar Land, Texas.

The Forum was organized by Westpaq International with help from the United States Department of Commerce and the US Commercial Service in Houston. It brought together the Governor of Bayelsa State and officials from Nasarawa, Ogun, and Ondo States. Over 15 top American energy, mining, and finance companies attended, including Honeywell, KBR, Worley, and Lummus Technology.

The project will happen in phases. It will start with gathering and using flared gas to power the state’s Independent Power Plant and new industrial areas while reducing pollution. After that, there will be a full plan to develop and use the state’s large gas reserves.

After a private meeting with Governor Douye Diri, Fulcrum LNG CEO, Mr. Jesus Bronchalo, said the governor’s speech sparked interest in the partnership. He described the deal as having great potential for both sides.

Bronchalo mentioned that Fulcrum will start a detailed study of Bayelsa’s flare sites. This study will help them figure out the right technology and infrastructure needed. He compared it to a similar project in Guyana worth around $3 billion. He said the investment for Bayelsa will be decided after the feasibility study and might be larger than their Guyana project.

"From FID to commissioning will take about 12 months," Bronchalo said.

"First, we need to understand the problem on the ground, where those facilities are and why gas is being flared. We will come to Bayelsa to understand the magnitude.

"Some flares may be so remote or uneconomic that gathering may not be viable. The key question is whether the flaring is due to lack of infrastructure to move the gas or lack of re-injection capacity. Once we know that, we can determine the best option.

"The way we do it, we invest 100 percent. If the government wants equity, then it brings capital for that portion."

In response, Governor Douye Diri called the agreement a win-win. He promised his government would start work right away, noting they have about 15 months left in office.

Governor Diri said the project is essential for protecting the environment and boosting industrial growth. "Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive."

Earlier at the roundtable, Governor Diri pointed out that Bayelsa has about 15-20 percent of Nigeria’s proven gas reserves. He mentioned the state provides around 60 percent of the gas used by the NLNG Company in Bonny, Rivers State.

He added that Bayelsa has the longest coastline in Nigeria at 203 kilometers, with direct access to the Gulf of Guinea. He also highlighted the Agge Deep Seaport as a natural port that doesn’t need dredging and called it Nigeria’s deepest natural port, making it a prime spot for ships entering the country.

Mr. Samuel Diminas, CEO of Westpaq International, who facilitated the Forum, expressed happiness with the results. He thanked Senator Ben Murray-Bruce for his efforts in making the Forum successful.