Bayelsa partners US firm to tackle gas flaring

File: Bayelsa State Governor, Senator Douye Diri.

The Bayelsa State Government has entered into a partnership with United States-based energy company, Fulcrum LNG Incorporated, to develop a gas gathering and processing facility aimed at reducing gas flaring and supplying power to industries in the state.

The agreement was reached on Wednesday at the end of the inaugural US-Nigeria Governors Government-to-Business Forum on Energy, Mining and Infrastructure held in Sugar Land, Texas, according to a statement by the Governor’s Chief Press Secretary, Daniel Alabrah.

The project will be implemented in phases, beginning with the gathering and commercialisation of gas currently being flared. The gas is expected to supply the state’s Independent Power Plant and emerging industrial clusters.

The second phase will involve a broader gas monetisation and development plan to harness Bayelsa’s gas reserves.

Speaking after a meeting with Governor Douye Diri, Fulcrum LNG’s Chief Executive Officer, Jesus Bronchalo, said the company would conduct a field study of the state’s gas flare sites to determine the technology and infrastructure required.

He said the assessment would establish the scale of gas flaring, the locations of flare sites and whether the problem resulted from inadequate infrastructure for transporting gas or insufficient reinjection capacity.

“Some flares may be so remote or uneconomic that gathering may not be viable. The key question is whether the flaring is due to lack of infrastructure to move the gas or lack of re-injection capacity. Once we know that, we can determine the best option,” he said.

He said the company would provide the investment for the project, adding that the government could acquire an equity stake by contributing capital.

“The way we do it, we invest 100 per cent. If government wants equity, then it brings capital for that portion,” he said.

Bronchalo said the investment required for Bayelsa would be determined after the feasibility study, adding that the company hoped to move from a final investment decision to commissioning within 12 months.

He cited a similar project the company was undertaking in Guyana, which he valued at about $3bn, but did not disclose a definite investment figure for the proposed Bayelsa facility.

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Diri described the partnership as a win-win arrangement, saying it would help address the environmental effects of gas flaring while supporting the state’s industrialisation plans.

“Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive,” he said.

He assured the company of his administration’s commitment to the project, noting that it had about 15 months left in office.

At the forum, Diri said Bayelsa accounted for an estimated 15 to 20 per cent of Nigeria’s proven gas reserves and supplied about 60 per cent of the gas used by Nigeria LNG Limited in Bonny, Rivers State.

He also highlighted the state’s 203-kilometre Atlantic coastline and the proposed Agge Deep Seaport as opportunities for investment in energy and maritime infrastructure.

The forum was facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service in Houston.

It brought together representatives of Bayelsa, Nasarawa, Ogun and Ondo states, as well as more than 15 American energy, mining and financial companies, including Honeywell, KBR, Worley and Lummus Technology.

Fulcrum LNG was selected by the Guyanese government in 2024 to help develop infrastructure for the country’s natural gas resources, including plans for gas processing and monetisation.

However, Reuters reported in October 2026 that Guyana was considering scaling back its liquefied natural gas export ambitions because of competing demands for gas to support oil production.

The Bayelsa partnership will first require a field assessment and feasibility study to determine the project’s technical requirements and investment size.