Axxela takes FID to develop a 50-MMft3d gas processing plant

Axxela Ltd., a leading gas and power portfolio company in Sub-Saharan Africa, has taken a final investment decision (FID) for the development of a gas processing plant situated in OML 56, Delta State, South-South Nigeria.

This strategic investment marks yet another significant stride towards delivering on Axxela’s commitment to deepen domestic gas utilization in Nigeria. The gas processing plant with a total capacity of 50 MMft3d will be delivered in phases. The first phase will comprise a 12-MMft3d modular plant, with an interconnection pipeline network of about 4 km alongside other ancillary infrastructure. The facility is expected to commence operations by the end of 2024.

Speaking on this pivotal landmark, Franklin Umole, Director of Business Development, Axxela, said, “As the Federal Government continues to pursue its Decade of Gas and Energy Transition Agenda, we remain a reputable private sector partner with the capacity to develop gas processing plants aimed at tackling the longstanding challenge of gas flaring and commercialization in Nigeria.”

“We are positioning to develop (the) requisite infrastructure for natural gas processing and last mile distribution that creates market access for at least 20% of Nigeria’s gas demand. Over the past two decades, we have been at the forefront of natural gas advocacy, and this project is a further reaffirmation of our dedication to gas infrastructure development and our vision to deliver innovative energy solutions across Nigeria and Africa,” he concluded.

Following the board’s FID, Axxela has executed a long-term feedstock supply agreement with a leading indigenous upstream player and established equipment supply arrangement with world-class original equipment manufacturers (OEMs) to ensure quality delivery of the project. The design concept is based on a fast and modular expansion as Axxela is partnering with OEMs with a ready stock of equipment for deployment.

The project is strategically cited in OML 56 to serve as a potential hub that upstream players with fields within a 30-km radius can partner with to process associated and non-associated gas. Axxela believes in the potential of this central processing hub, having identified two prospective fields and with the partnership with the OEMs, the company envisages that the plant’s output can be scaled up to 50 MMft3d within 18 mos.

Beyond unlocking economic opportunities, the project can potentially transform gas flaring into a valuable resource that will further ensure a stable, cleaner energy for domestic utilization, thereby contributing significantly to reductions in annual CO2 emissions and supporting environmental sustainability.

Upon completion, processed gas from the facility will be readily available for utilization across various market segments, including compressed natural gas (CNG) for vehicles, feedstock for industries and decentralized power solutions, among others.

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