…. KGG contributes to Nigeria’s flare-out targets – Engr.Ogbe said
Oredola Adeola
The Federal Government has spotlighted the 300 MMscfd Kwale Gas Gathering (KGG) and injection facility in Delta State’s Umusam Community as a pivotal project in its Decade of Gas plan, aimed at transforming Nigeria into a gas-powered economy by 2030.
Rt. Hon. Ekperikpe Ekpo, the Honourable Minister of State for Petroleum Resources (Gas), made this remark during the formal commissioning ceremony of the Kwale Gas Gathering (KGG) and injection facility on Thursday, describing the facility as a significant advancement in promoting sustainable energy efficiency and economic growth.
According to Ekpo, the completion of the KGG project marks a turning point for Delta State and Nigeria’s broader efforts to harness its abundant natural gas resources for development.
He highlighted that the facility would attract investment, create jobs, and boost economic activity in Delta State and beyond by providing a reliable and sustainable gas supply.
“We are opening doors for economic growth, environmental protection, and technological innovation. This project aligns with the Decade of Gas plan, which aims to make Nigeria a gas-powered economy by 2030,” he stated.
Ekpo concluded by emphasizing that the inauguration of the KGG facility is just the beginning, urging continued collaboration and striving for excellence.
Rt. Hon. (Elder) Sheriff O. Oborevwori (JP), Governor of Delta State, represented by Deputy Governor Sir Monday Onyeme, expressed gratitude to NEDOGAS, NCDMB, NGIC, and all other project partners during the commissioning of the Kwale Gas Gathering (KGG) facility.
The Governor called for more projects of similar magnitude across Delta State, emphasizing that such initiatives would enhance gas supply, create direct and indirect jobs, and boost the economy of both the state and the country.
Engr. Felix Ogbe, Executive Secretary of the NCDMB, in his remark emphasized Nigeria’s commitment to the flares-out program and the COP 26 commitments on reducing emissions, aiming for net zero by 2060.
The NCDMB’s boss noted that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act mandates the NCDMB to support initiatives fostering national capacity development.
He said, “The NEDOGAS project is a significant achievement under this mandate, particularly under section 70 (H) of the Act.
Engr. Ogbe therefore highlighted the NCDMB’s investment in third-party companies to support the Federal Government’s job creation mandate, adding value to natural resources, and contributing to Nigeria’s flare-out targets.
“These projects aim to create numerous direct and indirect jobs, supporting the economy,” he said.
Engr. Ogbe revealed that the project commissioning coincides with the first anniversary of President Bola Ahmed Tinubu’s administration, which prioritizes harnessing Nigeria’s gas resources for domestic use and industrialization.
He reaffirmed the NCDMB’s commitment to promoting local content, driving economic growth, and improving the quality of life for all Nigerians.
“We will continue to advocate for policies encouraging the participation of Nigerian companies and professionals in the oil and gas industry, ensuring our resources benefit national development,” the NCDMB’s boss concluded.
The NCDMB noted that the Kwale Gas Gathering (KGG) facility represents a major achievement in the quest to provide gas into the OB3 trunk line, monetizing natural gas resources from the OML 56 producer cluster.
The Board added that the facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province, offering independent operators the opportunity to monetize natural gas through its gas gathering, compression, injection, and metering infrastructure, facilitating quick market access.
It said, “The KGG hub is now tied into the NGIC-owned and operated 48-inch OB-3 gas trunk line, with an initial gas injection capacity of approximately 50 MMscfd.
“This includes 20 MMscfd from the Nedogas Plant in Energia’s Ebendo field and 30 MMscfd from the Matsogo field operated by Chorus Energy Limited. Gas volumes are being gradually ramped up.
With successful gas injection from the Energia/Oando JV and Chorus-operated fields, the KGG Facility is poised to receive additional gas from nearby fields, including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, and Midwestern Oil & Gas. This positioning aims to establish KGG as a fully-fledged gas-gathering hub with a single point injection capacity of up to 300 MMscfd into the OB3.
Advisors Reports gathered that NCDMB and its partners are planning expand the KGG facility’s capacity to 600 MMscfd in its second phase.
Besides meeting gas delivery obligations, the KGG is also expected to supply the Delta State Economic Zone (DSEZ) from an integrated supply node within the manifold at the hub.
The NCDMB highlighted its equity investment in NDCL, a 100 % owned Nigerian company, as a strategic project aimed at actualizing the Federal Government’s aspirations in the oil and gas industry, particularly under the Decade of Gas programme.
NCDMB emphasized that these investments align with its mandate to build capacity and catalyze local projects in the Nigerian oil and gas industry as outlined in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
