Axxela to Build Gas Processing Plant in Delta State, Nigeria
Axxela Limited, a leading gas and power company in Sub-Saharan Africa, announced a major investment in a new gas processing plant. The facility will be situated in Oil Mining Lease (OML) 56, Delta State, in southern Nigeria.
Project Details and Timeline
This strategic investment marks a significant step towards Axxela’s commitment to increase domestic gas utilization within Nigeria. The gas processing plant will have a total capacity of 50 million standard cubic feet per day (MMSCF/D) and will be developed in phases.
The first phase will see the construction of a 12 MMSCF/D modular plant, along with a 4-kilometer interconnection pipeline network and other supporting infrastructure. This initial phase is expected to be operational by the end of 2024.
Addressing Gas Flaring and Expanding Gas Access
Franklin Umole, Director of Business Development at Axxela, commented on the project’s significance. He highlighted Axxela’s role as a private sector partner in addressing the longstanding challenge of gas flaring and commercialization in Nigeria. The project aligns with the Federal Government’s “Decade of Gas and Energy Transition Agenda.”
Umole further stated Axxela’s ambition to develop essential infrastructure for natural gas processing and distribution. This infrastructure aims to create market access for at least 20% of Nigeria’s gas demand. The project signifies Axxela’s ongoing commitment to gas infrastructure development and providing innovative energy solutions across the African continent.
Project Partnerships and Expansion Plans
Following the final investment decision, Axxela has secured a long-term feedstock supply agreement with a major Nigerian upstream player. Additionally, they have established equipment supply agreements with reputable Original Equipment Manufacturers (OEMs) to ensure high-quality project delivery.
The plant’s design allows for rapid and modular expansion. Axxela’s partnership with OEMs who have readily available equipment facilitates this scalability. The project’s strategic location in OML 56 positions it as a potential hub for processing associated and non-associated gas from nearby fields (within a 30km radius). Axxela has identified two such potential fields and, with their OEM partnerships, anticipates scaling up the plant’s output to 50 MMSCF/D within 18 months.
Environmental and Economic Benefits
Beyond economic opportunities, the project has the potential to transform gas flaring into a valuable resource. Processed gas will provide a stable and cleaner energy source for domestic use. This will contribute significantly to reducing annual CO2 emissions and supporting environmental sustainability.
Once operational, the processed gas from the facility will be available for various market segments. This includes Compressed Natural Gas (CNG) for vehicles, feedstock for industries, and decentralized power solutions.
Axxela’s new gas processing plant in Delta State is a significant development for Nigeria’s energy sector. The project promises to increase domestic gas utilization, create economic opportunities, and contribute to a cleaner environment.
