Kwale Gas Gathering to Double its Gas Processing Capacity

Kwale Gas Gathering Current Operations and Strategic Importance

• Current Capacity: The KGG facility boasts a processing capacity of 300 million standard cubic feet per day of natural gas.
• Location: Umusam community, near Kwale, Delta State
• Developers: Nedogas Development Company Limited, a Joint Venture between Xenergi Limited and the Nigerian Content Development and Monitoring Board.

Commissioned on June 6, 2024, the KGG facility serves as a hub for gathering, compressing, injecting, and metering natural gas from various fields in OML 56. Thus, KGG facilitates the monetization of stranded gas resources.

Additionally, the KGG hub will connect to the 48-inch OB-3 gas trunk line. NNPC owns and operate the trunk line.

The facility began operations with an initial gas injection capacity of roughly 50 MMscfd. This comprises 20 MMscfd from the Nedogas Plant and an additional 30 MMscfd from the Matsogo field, operated by Chorus Energy Limited.

Economic Benefit

The KGG facility is projected to contribute over $240 million per annum to Nigeria’s GDP within the next four years.

This contribution will occur through trunk line tariffs, gas sales to off-takers, and other infrastructure tariffs and tolling revenues generated by the network and trunk line operators.

Additionally, it will contribute to the development of the Delta State Economic Zone.

The KGG facility aligns with the federal government’s “Decade of Gas“ initiative. The Decade of Initiative aims to increase gas production and utilization nationwide for power generation and as a feedstock for industries.