US company to build $100m gas plant in Bayelsa
By the AFREEQUE newsroom, based on ThisDay
US company Fulcrum LNG will build a $100 million gas gathering and processing plant in Bayelsa State, southern Nigeria, to monetise gas currently being flared. The agreement was reached at a US-Nigeria governors’ business forum in Sugar Land, Texas, according to Governor Douye Diri’s office.
Fulcrum LNG Incorporated, a US-based energy company, will conduct a study of gas flaring sites in Nigeria’s Bayelsa State before determining the technologies and infrastructure needed for a gas gathering and processing project. The partnership agreement with the Bayelsa government was reached on Wednesday at the end of the US-Nigeria forum on energy, mining and infrastructure, according to Governor Douye Diri’s spokesman, Daniel Alabrah.
Fulcrum LNG chief executive Jesus Bronchalo said the company was targeting about 12 months between the final investment decision and commissioning of the facility. The project will first recover gas currently being flared at flaring sites, then supply Bayelsa’s independent power plant and developing industrial clusters, according to the state government.
Fulcrum LNG is carrying out a similar project in Guyana, valued at about $3 billion, Jesus Bronchalo said. He added that the Bayelsa investment could exceed the scale of that South American operation, but that its final amount would depend on the feasibility study.
