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NCDMB Receives $1m Return on Investment from NEDOGAS

Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr Felix Omatsola Ogbe with, Chairman NedoGas Development Company Limited (NDCL), Engr. Emeka Ene at the ceremony marking the payment of $1m being return on investment on the Board’s strategic investments.

By Patience Chat Moses 

The Nigerian Content Development and Monitoring Board (NCDMB) has received a return of investment (ROI) worth $1 million from Nedogas Development Company Limited (NDCL), one of the Board’s strategic investments.

This was revealed in a communique issued to journalists from the Corporate Communications office at NCDMB.

The $1 million cheque was presented by the Chairman of the Crompany, 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 management board.

NDCL is a joint venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company.

As part of the project, 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.

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 the Nigeran Oil and Gas Industry Content Development (NOGICD) Act.

In his comments, the NCDMB boss stated that the success story of NDCL at Kwale, could be replicated in other oil- and gas-producing communities to minimize gas flaring.

 He reiterated the Board’s readiness to continue collaborating with the company adding that their model should be extended to other parts of the country where gas flaring is continuing as have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.

Ogbe confirmed that NCDMB had continued to receive briefings from its investment partners, and that the board is still waiting for them to come back with success stories as some of them are near completion and are yet to start operations.

Chairman of NDCL, Mr. Emeka Ene conveyed the Company’s excitement in returning part of the credit and profit, adding that it is a prove that NCDMB’s investment was a success and they are getting back that investment.

He noted that NDCL looks forward to further collaboration with  NCDMB to expand its scope and  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,” he concluded.

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