Bayelsa, US Firm Seal Gas Plant Deal, $100m Investment Yet to Be Confirmed

The Bayelsa State Government has signed a partnership agreement with United States-based energy company, Fulcrum LNG Incorporated, to develop a gas gathering and processing facility aimed at reducing gas flaring and supporting industrialisation.

The agreement was reached on Wednesday, November 11, at the conclusion of the inaugural US-Nigeria Governors Government-to-Business (G2B) Forum on Energy, Mining and Infrastructure held in Sugar Land, Texas.

The proposed project is expected to be implemented in phases, beginning with the recovery and commercialisation of gas currently being flared across the state. The recovered gas will be channelled towards powering Bayelsa’s Independent Power Plant and emerging industrial clusters.

A subsequent phase will involve a broader gas monetisation and development programme designed to harness the state’s natural gas resources.

The partnership has been reported as a $100 million investment. However, the actual financial commitment is yet to be established, as Fulcrum LNG says it must first complete a feasibility study of gas flare sites across Bayelsa.

Speaking after a meeting with Governor Douye Diri, the company’s Chief Executive Officer, Jesus Bronchalo, said the assessment would identify the locations of flare sites, the volume of gas being wasted and the infrastructure required to gather and process it.

He noted that some locations might be too remote or economically unviable for gas recovery, making the assessment necessary before determining the project’s final scope and cost.

Bronchalo said Fulcrum LNG was prepared to provide the project funding, while the state government could acquire an equity stake by contributing capital.

He added that the company was targeting a period of approximately 12 months between the final investment decision and commissioning.

Governor Diri described the partnership as an important opportunity to address environmental pollution associated with gas flaring and expand the state’s industrial capacity.

He assured the company of his administration’s commitment to facilitating the project, noting that Bayelsa had about 15 months remaining in office.

The governor also stated that Bayelsa accounts for an estimated 15 to 20 per cent of Nigeria’s proven natural gas reserves and supplies about 60 per cent of the gas used by Nigeria LNG Limited at its Bonny facility in Rivers State.

The forum was facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service in Houston. It brought together representatives of Bayelsa, Nasarawa, Ogun and Ondo states, alongside more than 15 American energy, mining and financial companies.

The proposed facility is expected to support electricity generation, reduce gas wastage and create opportunities for industrial development if the feasibility assessment leads to a final investment decision.