How Nigerian company wants to build mega gas facility in another African country

• The Kenyan government is negotiating with Asharami, Sahara Group’s subsidiary, to construct a mega gas facility
• The deal involves Kenya Pipeline Co. forming a partnership with Asharami Synergy to construct the facility in Mombasa
• Kenya Pipeline Co. will provide the land for the project located in the port city of Mombasa

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The government of Kenya is negotiating with Sahara Group’s subsidiary, Asharami Synergy Plc, to construct a 30,000-ton facility to store liquified petroleum gas (LPG).

The deal reportedly involves state-owned Kenya Pipeline Co. forming a joint venture with Asharami Synergy Plc to construct a common user terminal in Mombasa, which will be East Africa’s LPG storage and bottling facility.

Asharami Synergy to construct gas facility in Kenya Credit: AvigatorPhotographer
Source: Getty Images

The deal is to be finalized in two years

The mega facility is expected to be finished in 24 months and will be financed by Asharami. The deal is expected to be signed by the end of July.

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According to a Bloomberg report, Kenya Pipeline Co. will provide the land for the project in the port city of Mombasa.

The project is expected to help Kenya access universal clean cooking energy by 2030.

Reports say President William Ruto has been championing the country to become a leader in green energy in Africa.

Ruto aims to double the current per capita usage of LPG, which currently stands at 7kg.

Kenya negotiating with Saudi Aramco

The report said that Kenya Pipeline Managing Director Joe Sand disclosed that the country is also working to bring a private sector firm on board for the new cooking gas facility.

The East African country is also negotiating with Saudi Aramco, with the discussions focused on acquiring a floating LPG barge.

Sang disclosed the country’s efforts to improve its energy infrastructure and support its energy goals.

Nigeria is one of the leading gas producers globally, Africa’s largest oil producer, and has significant expertise in the energy sector.

Sahara Group, Asharami’s parent company, is a leading energy giant in Nigeria and has been driving innovation and growth in Africa’s energy markets.

NNPC signs gas deal with TotalEnergies

The development follows a recently signed deal between the Nigeria National Petroleum Company Limited (NNPC) and TotalEnergies to boost domestic gas production.

The NNPC and TotalEnergies signed a $550 million gas project to develop the Ubeta gas field

The Ubeta is a low-emission and low-low-cost development, using OML 58 and existing gas processing facilities

Nigeria is set to increase its domestic gas availability by investing $500 million in the Ubeta gas field development project.

The final investment (FID) was signed by the Nigerian National Petroleum Company Limited (NNPC) and TotalEnergies, the operator of the OML 58 license where the Ubeta field is situated.

Nigeria is set to increase its domestic gas availability by investing $500 million in the Ubeta gas field development project.

The final investment (FID) was signed by the Nigerian National Petroleum Company Limited (NNPC) and TotalEnergies, the operator of the OML 58 license where the Ubeta field is situated.

The project will expand Nigeria’s energy security.

Reports say the project involves a $550 million commitment to extract 900 billion cubic feet of non-associated natural gas from OML 58, situated approximately 85 kilometers from Port Harcourt in the Delta region.

The Ubeta project will provide 350 million standard cubic feet daily of gas, mainly meant for Nigeria’s domestic market to make up the operational capacity of NLNG Train 7.

TotalEnergies disclosed that the Ubeta gas field is the latest in a series of projects developed by the company in Nigeria, such as the Ikike and Akpo West.

Mike Sangster, TotalEnergies senior vice president of Africa, Exploration, and Production, said the project aligns with the company’s strategy of developing low-cost and low-emission projects and will contribute to the Nigerian economy through NLNG exports.

Energy analysts believe the project is a significant step in advancing energy security, a vital plank of the Nigerian government’s plans to achieve economic development.

NLNG Supplies 493,000 Metric Tons of LNG to the Nigerian Market

Legit.ng earlier reported that Nigeria LNG Limited (NLNG) said it supplies about 1.5 million tons of LPG to the domestic Nigerian market.

The company clarified that it provides nearly 500.000 metric tons of LPG annually to meet local demands.

The development is in pursuit of its commitment to deliver 100% of its LPG production to the domestic market, which was decided by the company’s board of directors.

Source: Legit.ng