Abuja, Nigeria. August 30th. Greenville Oil and Gas has secured a domestic gas supply deal for it’s mini Liquefied Natural Gas (LNG) plant with Nigerian National Petroleum Corporation (NNPC) and Total Exploration and Production Nigeria Limited (TEPNG) joint venture (JV). The gas supply agreement was signed in Abuja by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, the Managing Director of TEPNG, Mr. Nicolas Terraz and Chairman Greenville, Eddy Van Den Broeke.
The mini LNG project to be built by Greenville in phases, would when completed reportedly become the first domestic LNG plant in Nigeria, taking up to 74 metric million standard cubic feet per day (mmscf/d) of gas from Oil Mining License (OML) 58 in Obite Rivers State to Grenville’s plant in Rumuji also in Rivers State for liquefaction and distribution to end users across Nigeria.
Under the gas sale and aggregation agreement (GSSA), the state-run NNPC together with Total and Gas Aggregation Company of Nigeria (GACN) will deliver 74 million standard cubic feet (MMscf) of gas to the Greenville Oil and Gas Company.
The volumes delivered to Greenville will be processed into liquefied natural gas (LNG) at the company’s $500 million mini-LNG facility in Rumuji, River State, a first such plant in Nigeria, the country’s ministry of petroleum resources said in a statement.
This would allow for the transportation of gas to various locations and stranded industries around the country through a virtual pipeline of specialized LNG trucks. The NNPC/Total joint venture will fulfill its domestic supply obligation (DSO) by supplying the gas to the project.
Also in attendance at the meeting were the Managing Director of the NNPC, Dr. Maikanti Baru, represented by Mr. Sam Ndukwe, a senior official of the corporation; the Managing Director of TEPNG, Mr. Nicolas Terraz ; and Chairman Greenville, Eddy Van Den Broeke.
Kachikwu, stated in his remarks that the development of the mini LNG project was in line with President Muhammadu Buhari’s mandate to him to shift Nigeria’s focus from oil to gas, considering that the country was rich in gas resources.
Speaking on the project however, Eddy Van Den Broeke said the mini plant would be developed in phases, with the first phase costing $500 million of equity investment, while the second phase would take another $350 million.
Eddy Van Den Broeke explained that the plant will produce gas for domestic use in Nigeria, adding that the electricity, transportation sectors, as well as other industrial users would be served by the mini LNG plant.
“We have just decided to invest in the first three mini LNG plants in Africa, but the big challenge today is that no bank is available to finance this investment because of the temporary problems that Nigeria is going through. We have taken the bold step in saying this country will come back in the next two or three years with the revolution that is going in the country and development of more agriculture,” said Broeke.
He further stated: “It will allow Nigeria to get back to a stronger financial position again. Our project is done with Total Gas, local gas coming from Obite. That means no need for foreign exchange. Today, we have passed the dark tunnels and we are getting back.”
Photo: Greenville mini LNG plant in Rumuji, Rivers State
A Green Gas Liquefied Natural Gas (LNG) facility is being constructed by Grenville Nigeria Limited in Rumuji, Emohua Local Government Area of Rivers state. The Chairman of Greenville Nigeria Limited, owners of GreenGas LNG facility, Eddy Van Den Broeke, had earlier disclosed that the project, which covers 42 hectares, would employ between 3000 and 3500 workers upon completion, revealing that presently, there are eighty workers daily at the project site.
Eddy Van Den Broeke stated that on completion, 250 trucks would be loading from the facility, while it would generate 150 megawatts of electricity to serve Rivers and other states of Nigeria. The Chairman of Greenville Nigeria Limited also noted that the gas produced at the facility would help other parts of the country to produce 600 megawatts of electricity.
Nigeria has stepped up its efforts to deliver natural gas to areas not connected to the national gas pipeline network by creating a virtual LNG pipeline.
The Greenville Mini-LNG plant has an installed production capacity of 2,250mt/day, and is powered by 50mw gas-fired captive plant among other ancillary infrastructure, the ministry said in a statement on Tuesday.
In order to facilitate delivery, Greenville has purchased LNG transportation trucks and tankers, and is constructing retail stations and secondary storage facilities across the nations for logistics support.
The plant is ready to commence operations before the end of the year, however, the company is already planning to expand its capacity to 5,250mt/day.
According to Greenville,
“Virtual pipeline allows LNG to be transported to non-pipeline connected areas, especially the gas stranded parts of Nigeria. To complement the virtual pipeline, Greenville LNG will bring the first LNG powered trucks into Nigeria and provide over the full stretch of the pipeline, LNG stations with cryogenic storages and full re-gasification on site. Greenville LNG will through Virtual pipeline use trucks fuelled with LNG to deliver LNG to customers. Greenville LNG will have a fleet of 750 specially designed cryogenic tank trucks fuelled by LNG. LNG as a fuel will also allow trucking on long hauls which will have positive impact of 35% reduction on transportation/logistics costs in Nigeria.”