Pan-African investment and development company FrazEnergy, a subsidiary of Oilserv, and global gas infrastructure company Galileo have signed a Final Investment Decision to invest $20 billion in transmission and distribution infrastructure for a Liquified Natural Gas (LNG) development project located in Delta State, Nigeria.
The project will utilize LNG from the ND Western marginal field and feature a five million cubic feet gas plant. This plant will capture and process gas that would otherwise be wasted through flaring, and also resolve transportation challenges associated with extracting and moving liquefied petroleum gas (LPG).
“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,” FrazEnergy’s General Manager, Osi Okonkwo said.
The deal includes the development of LNG, propane and LPG plants and supports FrazEnergy’s broader infrastructure projects, such as the Ajaokuta-Kaduna-Kano (AKK) pipeline. “Moreover, distribution lines are also necessary. For example, the South-North gas pipeline will pass through major cities like Enugu and Ajaokuta,” Okonkwo added.
The FrazEnergy team, along with Galileo Technologies, also met with the Nigerian Upstream Petroleum Regulatory Commission to discuss potential collaboration and the integration of this technology into Nigeria’s regulatory framework.
