FrazEnergy Limited has signed a $20 billion investment in transmission and distribution infrastructure for a liquified natural gas (LNG) development project in Delta State. The project, involving a gas technology company, will harness scalable LNG from the ND Western marginal field.
The investment is aimed at meeting Nigeria’s increasing gas demand and improving energy access. FrazEnergy Limited plans to use Galileo Technologies’ expertise to improve the efficiency and reliability of the region’s gas transmission and distribution infrastructure.
Engr. Osi Okonkwo, General Manager of FrazEnergy Limited, stated during the signing ceremony at the Nigerian Oil and Gas (NOG) conference in Abuja that the LNG option was still essential for capturing gas flares and resolving the transportation issues associated with lifting liquified petroleum gas (LPG) in the nation. The deal, signed with a global gas infrastructure company, Galileo Technologies, would enable Nigeria to implement the goal zero flaring target while reducing the country’s carbon footprint.
The new deal, Osi said, would see the development of five million cubic feet that would have been flared. He added that the gas plant from the deal would bring onboard LNG, propane, and LPG.
Engr. Osi noted that the company, a subsidiary of Oilserv, which is working on the Ajaokuta-Kaduna-Kano (AKK) pipeline, would prioritize its own projects, including captive power generation for the manufacturing sector. He said there was a need to bridge the infrastructure gap to meet the projected goals of the country’s gas plan. According to him, gas plants and major pipelines, such as the South-North gas pipeline, which originates from Qua Iboe, pass through Obio/Akpor, Enugu, and connect to the Ajaokuta-Kaduna-Kano (AKK) pipeline, remained critical.
He continued that the plan, which is a key component of the gas master plan, spans approximately 800 kilometres, adding that the country needs other pipelines as part of the gas master plan. “The investment required for these projects is significant, ranging from $5 to $10 billion to complete the Nigerian gas transmission infrastructure. Additionally, the gas processing sector would need a similar investment, bringing the total to an estimated $15 to $20 billion to close the gaps in gas processing and fully implement the Nigerian gas master plan. “Moreover, distribution lines are also necessary. For example, the South-North gas pipeline will pass through major cities like Enugu and Ajaokuta. Building and investing in these distribution networks is crucial. Therefore, the overall investment required for these projects could easily fall within this range,” Osi added.
At the Technical Seminar Session at the recently concluded NOG Energy Week Conference & Exhibition, Engr. Osi Okonkwo and Mr. Gabriel Lorenzi delivered a suspense-triggering presentation focusing on ‘Transforming Flare Gas into a Sustainable Energy Source.’ The presentation showcased strategies to sustainably eliminate gas flaring in Nigeria by utilising Galileo Technologies’ innovative modular technology.
The team emphasised the critical role this technology plays in reducing flared gas, highlighting its significant environmental and economic impacts. This initiative not only aligns with Nigeria’s climate action targets but also supports global efforts to combat climate change and promote renewable energy sources.
Among all three presentations in the roll, 15 out of 16 questions were focused on FrazEnergy + Galileo Technologies’ superb presentation. The audience was clearly impressed by the potential of this technology to address a pressing environmental issue in Nigeria and contribute to a more sustainable future. The overwhelming interest and engagement from the attendees further solidified the effectiveness and importance of FrazEnergy + Galileo Technologies’ solution.
In another story, Engr. Osi Okonkwo and the FrazEnergy team, alongside their partners from Galileo Technologies Corporation, recently visited the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The purpose of the courtesy visit was to present Galileo Technologies’ modular technology and its benefits. The presentation was well-received, leading to further discussions on potential collaborations.
The team highlighted the crucial role of this technology in reducing flared gas and its significant environmental and economic impacts. Engr. Osi emphasized that the partnership between FrazEnergy Limited and Galileo Technologies would significantly benefit the Oil & Gas industry, with both LNG and CNG technologies available for deployment at flared gas sites. He also sought support from the CCE for permission to deploy their first gas flare liquefaction installation.
The Commission’s Chief Executive expressed interest in integrating this technology into the regulatory framework to help achieve Nigeria’s gas flaring reduction goals. The meeting concluded with plans for a follow-up meeting to discuss potential pilot projects and next steps for collaboration.
