By Richard Edjuto

Axxela Group has demonstrated commitment to sustainable energy development in Nigeria and West Africa.

Available industry data showed that despite its abundant energy resources, Nigeria continues to fall short of achieving the required energy capacity needed to meet its pressing socioeconomic demands.

The data showed that for decades, gas worth millions of dollars has been flared annually, polluting the environment even as industries battle the burden of unreliable and expensive energy sources.

Between 2020 and 2024, data from the Nigerian Gas Flare Tracker revealed that gas valued at approximately $1.9 billion was flared across nine states including Rivers, Delta, Imo, Edo, Akwa Ibom, Bayelsa, Anambra, Abia, and Lagos, averaging about $380 million per year.

This significant economic loss contributes to environmental degradation and hampers efforts to improve energy security.

However, in its latest report, Axxela disclosed that steps have been taken to harness the country’s gas potential by building infrastructure that will reduce flaring, enhance supply security, and deliver cleaner, more efficient energy solutions.

With operations across Nigeria, Axxela has established itself as an industry leader in the West Africa sub-region, pioneering a private sector-led approach to natural gas distribution.

It noted that with over 400km of natural gas pipelines developed, significant investment in gas infrastructure development, strategic partnerships across the value chain, and a track record of serving industries, power plants, and manufacturing hubs, the company has made positive impact.

The company stated: “In 2024, the company announced that it had taken the Final Investment Decision to develop a gas processing plant in Delta State, South-South Nigeria, one of the zones mentioned in the gas flare tracker report. The gas processing plant, which will be delivered in phases, has a total capacity of 50 million standard cubic feet per day (MMSCF/D).

“The first phase will consist of a modular plant with a capacity of 25MMSCF/D, accompanied by an interconnection pipeline network of approximately 5 kilometres.

Upon completion, this plant, located in Umuseti Community, Utagba-Ogbe, Kwale, Ndokwa West Local Government Area of Delta State, is focused on extracting gas and creating value where waste once existed.

“For a country that is keen to generate value from flare gas, infrastructure such as this signifies a transformational shift. It simply means gas that was once flared will now be processed and delivered to fuel industries and communities, improving job creation and economic development.

More importantly, the community can benefit from a cleaner environment with reduced emissions and cleaner air.

“But beyond the infrastructure, what truly sets the plant apart is its strategic role in Nigeria’s gas monetisation drive. For decades, gas flaring has cost the nation billions of dollars in lost revenue, environmental degradation, and unfulfilled industrial potential.”

Commenting on the development, a community leader in Umuseti, Delta State, Chief Pedro Akpe, spoke glowingly about the project and its prospects for the community.

He said: “Axxela’s project is a welcome development. Gas flaring has been a major menace in our community for years, and we are delighted to welcome companies that will use these abundant natural resources positively and for our benefit.”

 The plant will create employment opportunities and generate revenue for both the state and federal governments.

“With the gas processing plant, Axxela is proving that gas that was once flared can now be a source of opportunities that will drive infrastructural development in the South-South region and across Nigeria. The plant will also provide industries with a stable, cost-effective gas supply, reducing reliance on diesel and heavy fuel oil.

“The Federal Government’s vision to make natural gas the fuel of choice for industrialisation, power generation, and economic growth is apparent. This is evident in policies like the Nigerian Gas Expansion Programme (NGEP) and the push for broader adoption of Compressed Natural Gas (CNG)by Nigerians.”

According to Franklin Umole, Managing Director, Axxela Gas Midstream Infrastructure, “Over the past two decades, we have been at the forefront of natural gas advocacy, and this project is a further reaffirmation of our dedication to gas infrastructure development and our vision to create market access for Nigeria’s gas demand. As the Federal Government continues to pursue its Energy Transition Agenda, we remain a reputable private sector partner with the capacity to develop gas processing plants aimed at tackling the longstanding challenge of gas flaring and commercialisation in Nigeria.

“Projects such as this reiterate the importance of public-private sector partnerships. Axxela, as one of such key players, is furthering the government’s agenda by promoting modular LNG and CNG projects, helping businesses switch to cleaner, more affordable energy sources.

“As Nigeria advances its energy transition agenda and prioritises becoming a gas-powered nation, Axxela will continue to play a pivotal role in unlocking the full potential of the country’s gas resources. Through critical infrastructure investments and more strategic partnerships across the value chain, Nigeria may be able to fully harness the opportunities of its abundant natural gas reserves and turn the tide of gas flaring around.”