Printable Version

USTDA Supports Virtual Pipeline Project in Nigeria, Creating Opportunities for U.S. Businesses



Monday, September 24, 2018

(USTDA)  ARLINGTON, VA – This week, the U.S. Trade and Development Agency signed a grant for a feasibility study to evaluate the viability of converting associated (flare) gas to compressed natural gas (CNG) and delivering CNG to customers via a virtual pipeline operation in Nigeria. The grantee is Tombia River Energy Company Limited (TREC), a Nigerian commercial gas company specializing in the commercialization and marketing of flared gas to businesses and industries in the Niger Delta region of Nigeria. The feasibility study will be conducted by Texas-based firm Nearshore Natural Gas, LLC.

With the largest proven natural gas reserves on the continent, Nigeria’s gas sector has great potential to meet the country’s growing demand for energy, however, a lack of infrastructure and other factors have limited the country’s ability to capitalize on that potential.

The study will promote the use of natural gas in Nigeria’s energy sector, including the application of U.S. technologies and best practices. In particular, the study aims to support the objectives of Nigeria’s gas flare commercialization efforts through a pilot involving the capture and monetization of flare gas in the country.

“USTDA is pleased to support this feasibility study that will expand energy access and reliability for citizens and businesses in Nigeria,” said Thomas R. Hardy, USTDA’s Director, Congressional and Public Relations. “This study will also display the value of innovative U.S. technologies in one of Nigeria’s fastest growing markets.”

“We are delighted to have USTDA's support,” said Onsu Wegner, Managing Director of Tombia River Energy Company. “This grant will enable TREC to take the first steps in converting an environmental pollutant into much needed fuel for electricity. The study will not only demonstrate the technical feasibility of the virtual pipeline model in Nigeria, but also the economic value of gas capture, thereby encouraging stakeholders to continue to develop Nigeria's gas and electricity infrastructure.”

This project supports the goals of Power Africa and the Electrify Africa Act.