NCDMB sees Nedogas $1m investment returns nurturing prosperity in oil sector

Business a.m.

The Nigerian Content Development and Monitoring Board (NCDMB) recently announced a $1 million investment return from Nedogas Development Company Limited (NDCL), marking a promising return on one of the Board’s strategic investments.

In a symbolic gesture, Emeka Ene, the NDCL chairman, journeyed to the Nigerian Content Tower in Yenagoa, Bayelsa State, to present the $1 million investment return to the NCDMB. The cheque was warmly received by Felix Ogbe, executive secretary of the NCDMB and his team, in a heartening display of collaboration and partnership between Nigeria’s public and private sectors.

The Nedogas Development Company Limited  is a joint venture company between Xenergi Limited and the NCDMB Capacity Development Intervention Company (NCDIC).

As part of the project, Nedogas Development Company Limited constructed and commissioned a 300 million standard cubic feet per day capacity Kwale Gas Gathering (KGG) and injection facility located in the Umusam Community, near Kwale in Delta State.

The KGG Facility was designed to handle stranded gas resources in Nigeria’s OML56 oil province by providing the opportunity for independent operators in the area to monetise natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.

Ogbe remarked that the success story of NEDOGAS at Kwale, Delta State could be replicated in other oil- and gas-producing communities to minimise gas flaring. He declared the board’s readiness to continue collaborating with the company, stating: “Their model should be extended to other parts of the country where gas flaring is continuing. They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.”

On his part, the NEDOGAS chairman  conveyed the company’s excitement in returning part of the credit and profit, adding that the development is a testament that NCDMB’s investment was a success and they are getting back that investment. He also envisioned a future of continued collaboration with NCDMB, poised to expand the company’s horizons beyond their initial success.

“That is the way the economy can grow, improve the gas infrastructure in such a way that is sustainable despite the tight economic conditions,” he added.

The value propositions of the Nedogas project include total eradication of flared gas and conversion of environmental pollutants into products of value and creation of a strategic gas gathering hub and injection node for quick access to market for gas owners to monetise gas. Other benefits include the provision of alternative gas supply to western flank of the OB3 line to add to the volumes of economic sustainability and increase in Nigeria’s gross domestic product (GDP), among other reasons.

The partnership with NEDOGAS is considered one of NCDMB’s 15 strategic investments geared towards actualising the federal government’s aspirations in key areas of the oil and gas industry.