Axxela: Gas plant in OML 56 to commence operations by end of 2024

Axxela Limited, a gas and power portfolio company, says it has taken the final investment decision (FID) for the development of a gas processing plant in oil mining lease (OML) 56, located in Delta state.

In a statement on April 22, Axxela said the gas processing plant with a total capacity of 50 million standard cubic feet per day (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 company said.

The facility, Axxela said, is expected to commence operations by the end of 2024. 

Following the board’s FID, the company said it 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 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,” the company said.

“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, Axxela said the processed gas from the facility will be easily accessible for utilisation across various market segments including compressed natural gas (CNG) for vehicles, feedstock for industries, and decentralised power solutions.

Commenting, Franklin Umole, director of business development, Axxela, said as the federal government continues to pursue its decade of gas and energy transition agenda, the company remains a reputable private sector partner with the capacity to develop gas processing plants aimed at tackling the challenge of gas flaring 

“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,” he said. 

Umole said the project is a further reaffirmation of the company’s dedication to gas infrastructure development and vision to deliver innovative energy solutions across Nigeria and Africa.