By Adewale Sanyaolu
Axxela Limited, a gas and power portfolio company in Sub-Saharan Africa, has affirmed that its 50 million standard cubic feet per day (MMSCF/D) gas processing project, located in OML 56, Delta State, South-South Nigeria, is steadily advancing and remains on schedule. The project, which recently reached its Final Investment Decision (FID), underscores Axxela’s commitment to enhancing domestic gas utilization within Nigeria.
The gas processing facility, designed to bolster Nigeria’s energy infrastructure, will be developed in phases. The first phase will see the establishment of a 12 MMSCF/D modular plant, supported by a 4-kilometer interconnection pipeline network and other essential infrastructure. The facility is set to commence operations by the end of 2024.
Once completed, the processed gas from the plant will serve multiple market segments, including Compressed Natural Gas (CNG) for vehicles, industrial feedstock, and decentralized power solutions, among others. This strategic initiative is expected to play a pivotal role in meeting the energy needs of Nigeria’s growing economy.
Axxela has also secured a long-term feedstock supply agreement with a leading indigenous upstream company and has established equipment supply arrangements with world-class Original Equipment Manufacturers (OEMs) to ensure the timely and high-quality delivery of the project. The design of the plant emphasizes a fast and modular expansion, facilitated by Axxela’s partnerships with OEMs who have ready stock of equipment for immediate deployment.
In parallel with its project development, Axxela has released its 2023 Sustainability Report, which highlights significant environmental achievements. The report reveals a remarkable reduction of over 703,000 tons in CO2e emissions from more than 200 industrial and commercial facilities across Nigeria and West Africa. This represents a 30.46 percent decrease in greenhouse gas emissions at customer locations between 2022 and 2023.
The substantial reduction underscores Axxela’s leadership in promoting natural gas utilization as a cleaner energy source, contributing to environmental conservation and supporting the Nigerian government’s net-zero emissions commitment.
Bolaji Osunsanya, Axxela’s Chief Executive Officer, emphasized the company’s dedication to sustainability, stating, “Our 2023 Sustainability Report is a testament to our unwavering commitment to environmental stewardship and sustainable development. By significantly reducing carbon and greenhouse gas emissions, we are not only supporting our customers in their sustainability goals but also contributing to a healthier planet for future generations.”