U.S. Energy Firm to Build $100m Gas Processing Plant in Bayelsa

​The Bayelsa State Government has signed a partnership agreement with a United States-based energy company, Fulcrum LNG Incorporated, to construct a $100 million gas gathering and processing facility in the state.
​The deal was sealed on Wednesday at the close of the two-day inaugural US-Nigeria Governors G2B Forum on Energy, Mining, and Infrastructure held at the Sweet Water Country Club in Sugar Land, Texas.
​Facilitated by Westpaq International in collaboration with the U.S. Department of Commerce and the U.S. Commercial Service in Houston, the summit brought together Bayelsa State Governor Douye Diri and representatives from Nasarawa, Ogun, and Ondo states, alongside over 15 major American energy, mining, and financial firms, including Honeywell, KBR, Worley, Lummus Technology, and VGas.
​Phased Execution and Investment Model
​Under the terms of the agreement, the project will be executed in phases. The initial phase will focus on gathering and commercialising flared gas to power Bayelsa’s Independent Power Plant (IPP) and emerging industrial clusters while curbing environmental pollution. A subsequent phase will introduce a comprehensive, integrated gas monetisation and development plan to harness the state’s vast reserves.
​Speaking after a closed-door meeting with Governor Diri, Fulcrum LNG Chief Executive Officer, Mr. Jesus Bronchalo, said the governor’s presentation at the roundtable sparked his company’s interest. He announced that Fulcrum LNG would conduct a comprehensive field study of Bayelsa’s flare sites to determine the appropriate technology and gathering infrastructure.
​While the exact investment size for Bayelsa will be determined following the feasibility study, Bronchalo noted that a similar project his company is executing in Guyana is valued at roughly $3 billion, adding that the Bayelsa venture is likely to exceed the scale of its South American operations.
​“From Final Investment Decision (FID) to commissioning will take about 12 months,” Bronchalo stated. “First, we need to understand the problem on the ground—where those facilities are and why gas is being flared. We will come to Bayelsa to understand the magnitude. Some flares may be so remote or uneconomic that gathering may not be viable. The key question is whether the flaring is due to lack of infrastructure to move the gas or lack of re-injection capacity. Once we know that, we can determine the best option.”
​Outlining the financing structure, Bronchalo added: “The way we do it, we invest 100 per cent. If the government wants equity, then it brings capital for that portion.”
​Curbing Pollution and Driving Industrialisation
​Responding to the agreement, Governor Diri described the deal as a win-win and assured of his administration’s commitment to immediate commencement, noting that he has roughly 15 months left in office.
​“Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive,” Diri said.
​Earlier during his roundtable pitch, the governor noted that Bayelsa holds an estimated 15 to 20 per cent of Nigeria’s proven gas reserves and supplies about 60 per cent of the feedstock utilised by the Nigeria LNG (NLNG) plant in Bonny, Rivers State.
​He also highlighted the state’s 203-kilometre Atlantic coastline—the longest in Nigeria—with direct access to the Gulf of Guinea, alongside the proposed Agge Deep Seaport, which he described as Nigeria’s deepest natural seaport requiring no dredging and an ideal first port of call for vessels entering the country.
​Meanwhile, the Forum facilitator and CEO of Westpaq International, Mr. Samuel Diminas, commended Senator Ben Murray-Bruce for his role in ensuring the success of the forum.