Axxela Limited, a leading gas and power portfolio company in Sub-Saharan Africa, announces that it has taken Final Investment Decision 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 utilisation in Nigeria. The gas processing plant with a total capacity of 50 MMSCF/D will be delivered in phases.

The first phase will comprise a 12 MMSCF/D modular plant, with an interconnection pipeline network of about 4km alongside other ancillary infrastructure. The facility is expected to commence operations by the end of 2024.

Speaking on this pivotal landmark, Director of Business Development, Axxela,  Franklin Umole 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 commercialisation in Nigeria.

“We are positioning to develop 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 Final Investment Decision, 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 assure quality delivery of the project. The design concept is based on a fast and modular expansion as Axxela is partnering with OEMs who have ready stock of equipment for deployment.

The project is strategically cited in OML 56 to serve as a potential hub which upstream players with fields within a 30km 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 MMSCF/D within 18 months.

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 utilisation thereby contributing significantly to annual CO2 emissions savings and supporting environmental sustainability.

 Upon completion, processed gas from the facility will be readily available for utilisation across various market segments including Compressed Natural Gas (CNG) for vehicles, feedstock for industries, decentralised power solutions among others.

The Minister of Power, Mr Adebayo Adelabu, has decried the activities of saboteurs and cartels in the electricity sector, blaming them for the incessant power outages in the country.

Adelabu expressed this during a  programme tagged “Confronting Nigeria’s Power Challenge as the Nation Migrates to a Multi-Tier Electricity Market” on Tuesday in Abuja.

The programme was organised by the House of Representatives Committee on Power.

The Minister said saboteurs and cartels perpetrated evil for their selfish interests in order to frustrate efforts at ensuring stable electricity supply in the country.

“We have saboteurs, cartels, and those who prefer to perpetrate evil for their selfish interests to frustrate our efforts,” Adelabu said.

He said all efforts must be geared towards propelling the country to  the league of  productive nations, adding that Nigeria was looking at reserves that would eliminate incessant power collapse.

He said the Federal Government was considering the liberalisation of the power sector.

“We also encourage the state government to invest in power generation in their states,” the Minister said.

 Adelabu listed Abia as one of the states that had invested in power, adding that the Federal Executive Council (FEC) had also granted Ekiti and Enugu State the right to generate tariffs.

The Minister said it was worrisome that a lot of investors did not come with their private equity, but had to borrow money from the bank to operate in the sector.

He, however, said that with time, investors would be made to operate the right way for the benefit of the sector.

The Minister also said that FG was looking at deepening rural electrification, adding that it would be done in collaboration with the state governments.

Adelabu said there were over 100 uncompleted power projects across the country, adding that those projects would not be energy-efficient without being completed.

Speaking, Group Managing Director, Sahara Power Group, Mr Kola Adeshina, expressed the regret that Nigeria could not supply electricity efficiently in spite of its abundant gas resources.

He said if electricity was not a priority in budget provision, it would be difficult for the country to work.

Adeshina said Nigeria had the resources to double its power generation.

“If the executive brings an appropriation bill before you(lawmakers) and the power sector is not number two after defence, then don’t allow it,” he said.

He urged the government to prioritise industrial areas in power distribution.

“After the industrial areas have had light during the day, we can shift power at night to residential areas because production takes place during the day.

“Let’s sequence our investment along the line of value-added. Nigerians are resilient, we are strong, and we have tenacity. Nigerians are tired of power collapse,” he said.