April 24, 2023 [Nairametrics] – President Muhammadu Buhari said his administration has put an adaptive framework in place to ensure that indigenous companies take advantage of the investments made by international oil companies.
The President stated this while giving a speech at the ongoing 2023 Nigerian International Energy Summit (NIES).
According to him, the framework has already helped indigenous companies to grow their capacity, as they are now responsible for 5% of national oil and gas production output which increased from 2% as of 2010.
Also, during his speech at the NIES, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, said that the NNPC is leveraging partnerships with the industry, government, research institutions and academia to ensure energy security and sustainability.
Details of the oil companies collaborating with NCDMB
Aside from the NNPC, the Nigerian Content Development and Monitoring Board (NCDMB), has been collaborating with several stakeholders and indigenous companies in the country’s gas sector to increase gas capacity across the country. Some of them are highlighted below.
Nedogas Processing Company Limited
This is a 100% Nigerian joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company. In 2022, the company collaborated with the Nigerian Gas Company Limited (NGC), a subsidiary of the Nigerian National Petroleum Company (NNPC), to complete the construction and technical commissioning of a 300 million standard cubic feet per day (MMscfd) capacity Kwale Gas Gathering (KGG) and injection Facility located in the Umusam Community, near Kwale in Delta State.
Rungas Prime Industries Limited
In 2020, the company partnered with the NCDMB to establish a 400,000 per annum Type 3 liquefied petroleum gas (LPG) Composite Cylinder Manufacturing Plant in Polaku, Bayelsa. The Rungas LPG Composite Cylinder Manufacturing plant was built on a 10.6 hectare of land which was purchased in 2013. Also, the NCDMB and Rungas started work on a new facility for the production of Liquefied Petroleum Gas (LPG) gas cylinder production in Alaro City, Lagos state.
The Partnership scheme called Rungas Alfa FZE will set up the second composite LPG cylinder manufacturing plant in Nigeria with an annual capacity of 800,000 Type 3 Composite Cylinders.
Duport Midstream Energy Limited
This is a leading energy company developing the first energy park in Nigeria, in collaboration with the NCDMB. The energy park will consist of a 10,000 barrels per day (bpd) modular refinery, 60 million standard cubic feet (scf) gas processing plant, 10 million scf compressed natural gas (CNG) plant, 30,000 metric tons (MT) refined product terminal and a 20 megawatt (MW) embedded power plant over a 5-year period. The energy park is located in Otien, Edo state.
Triansel Gas Limited
The company is a special-purpose vehicle under the auspices of Chimons Gas Limited, an indigenous oil and gas company. The company as of 2022, was developing a 5,000 metric tons liquefied petroleum gas (LPG) Storage and loading terminal facility in Koko, Delta State, in collaboration with the NCDMB. Chimons Gas Limited is also one of the major LPG off-takers with Nigeria Liquefied Natural Gas (NLNG) Limited. The company supplies and distributes petroleum products.
Butane Energy Limited
Butane Energy Limited is an LPG storage, trading and marketing company with distribution assets in the Northern part of Nigeria. The company has completed a 100 metric tons liquified petroleum gas (LPG) storage and bottling plant in Kabukawa layout, Katsina State.
The plant will address supply constraints in the domestic LPG market in the Northern part of Nigeria through its plant operations/bulk storage, transportation/distribution, cylinder filling and bulk retail.
In further partnership with NCDMB, Butane Energy will establish LPG storage and bottling plants in Abuja, Kano, Kaduna, Katsina, and Bauchi States while six depots would be in Zamfara, Jigawa, Gombe, Plateau, Niger and Nasarawa states.
Southfield Petroleum
This is an indigenous company focused on Oil and Gas, Liquefied Natural Gas (LNG) Marketing, Petrochemicals, and Liquefied Petroleum Gas (LPG) Marketing.
The NCDMB is collaborating with Southfield Petroleum to establish a 200 million standard cubic feet (mscf) gas processing plant at Utorogu, Delta State, which will produce 123,000 metric tons (MT) per annum of LPG, which is about 10% of current LPG demand across the country.
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