NCDMB receives $1m return on investment from NEDOGAS

Wed, Apr 17, 2024
By editor

Featured, Oil & Gas

THE Nigerian Content Development and Monitoring Board (NCDMB) on Monday received a
cheque of $1 million from Nedogas Development Company Limited (NDCL), being part of the
return on investment (ROI) on one of the Board’s strategic investments.

The cheque was presented by the Chairman of the company, Engr. Emeka Ene when he visited
the Nigerian Content Tower in Yenagoa Bayelsa State, where he was received by the Executive
Secretary, Engr. Felix Omatsola Ogbe and other members of the Board’s management.
Nedogas Development Company Limited (NDCL) is a joint venture company between Xenergi
Limited and NCDMB Capacity Development Intervention Company.

As part of the project, Nedogas Development Company Limited (NDCL) constructed and
commissioned a 300 MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility located
in the Umusam Community, near Kwale in Delta State, Niger Delta, Nigeria.

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 monetize natural
gas from their fields through the gas gathering, compression, injection and metering
infrastructure of the KGG for quick market access.

Nedogas is one of the several strategic and successful investments of the NCDMB funded from
the Nigerian Content Development Fund (NCDF), in line with the Board’s mandate to build
capacity and catalyze local projects in the Nigerian oil and gas industry as enshrined under theNigeran Oil and Gas Industry Content Development (NOGICD) Act.

In his comments, the NCDMB boss stated 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. “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

He confirmed that NCDMB had continued to receive briefings from its investment partners,
adding that “we are still waiting for them to come back with success stories. Some of them are
near completion and have not started operations yet.”

Chairman of NEDOGAS, Mr. Emeka Ene conveyed the company’s excitement in returning part
of the credit and profit, adding that this “proves that NCDMB’s investment was a success and
they are getting back that investment.” He added that “we look forward to further collaboration
with the NCDMB to expand the scope,” adding that “NCDMB is now doing effectively and

practically and tangibly what it was set up to, which is to impact the economy by direct
interventions. That is the way the economy can grow, improve the gas infrastructure in such a
way that is sustainable despite the tight economic conditions.”

The value propositions of the Nedogas project include total eradication of flared gas and
conversation 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 monetize 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 one of NCDMB’s 15 strategic investments geared towards
actualizing the Federal Government’s aspirations in key areas of the oil and gas industry. Most
of the projects were targeted at actualizing the Federal Government Decade of Gas programme.

Some of NCDMB’s notable third-party investments include Waltermith’s 5000 barrels per day
(bpd) modular refinery in Imo State, Azikel Group12,000 bpd hydro-skimming modular refinery
in Gbarain, Bayelsa State and Duport Midstream’s 2,500bpd modular refinery in Edo State.

Other investments include Better Gas Energy for LPG terminal and gas distribution, partnership
with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant
in Polaku, Bayelsa State and Alaro City in Lagos and the partnership with Butane Energy to
deepen LPG utilization in the North.

There was also the partnership with BUNORR Integrated Energy Limited in Port Harcourt,
Rivers State to produce 48,000 litres of base oil per day and partnership with the Nigerian
National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company
Limited and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama,
Brass, Bayelsa State.