eXcelerate’s mini-LPG community-based project is being developed at a time that the Federal Government is putting in place measures to deepen LPG consumption in Nigeria. Currently and in spite of its large population and abundance of natural gas resources (including LPG derivatives); Nigeria ranks lowly in LPG consumption in the West African sub-region. Nigeria’s present population of 190 million (source: NPC 2016) should be consuming about 5 million MTPA if LPG was the major/primary source of fuel for cooking alone. The reality today is that Nigeria consumes about 400,000 MTPA.Our immediate objective is to establish a community-based network of small-scale modular LPG refilling & bottling plants throughout the Nation. Our pilot LPG 8MT (16m3) modular bottling plant is located in Ojo Alaba and over a 3-year period, is projected to achieve sales > 3,000 MTPA of LPG. The pilot project will disrupt current methods of LPG retail marketing through the rollout and execution of a unique marketing campaign to promote the use of LPG via social media and tele-marketing.
Small Scale LNG
Countries like Nigeria face a dilemma. On the one hand, Nigeria is one of the biggest gas reserve holders in the world and as a result of oil exploration; gas is being flared in huge quantities. On the other hand the fast growing population (circa 190 million) needs more and more electrical power. It is tempting to connect the dots and assume that it suffices to convert all this gas into electricity in order to plug the gap. Reality is different as the necessary distribution and/or collection infrastructure does not exist. eXcelerate LNG aims to collect flared and stranded gas by using small-scale liquefaction technology for domestic use (with minimal exports to neighboring Island States such as Sao Tome). On the downstream side, eXcelerate LNG will develop a collection of small-scale LNG storage and distribution points, some of them equipped with their own power production capabilities. These points will also serve as hubs for the further distribution of electricity to stranded and off-grid consumers. eXcelerate LNG will use creditworthy local base load buyers with very stable off taking needs who are willing to enter into long-term agreements with a high Take or Pay ratio in order to secure financing on commercial terms and keeps costs tightly in check. Risks in the project are limited due to rigorous standards in feed-gas acceptance and choice of technology, but also due to the modular approach of the whole project.
Small Scale LNG Project Highlights
The vast majority of gas flared in Nigeria is sweet and does not contain other very nasty contaminants. eXcelerate will only consider gas sources that comply with these specifications as there are a vast array of possible sources. The gas source will need to be close to shore as coastal maritime transport will provide the backbone of our proposed logistical solution. eXcelerate welcomes discussions with gas reserve concessionaires for the purchase of feed-gas and would be happy to review flared gas specifications that lie within our requirements.
eXcelerate will use pre-fabricated, modular and standardized Nitrogen cycle Small Scale LNG liquefaction trains as a preferred equipment/technology choice and whilst there are a wide variety of equipment makers for this plant size and technology footprint, eXcelerate has developed good commercial contacts with all the important manufacturers, including Chart Energy Industries, U.S.A.
The commercial requirements and the feed-gas sources we are currently using as a yardstick for dimensioning the plant as well as the requirements of prospective customers have led us to consider the Chart C250IMR – with a liquefaction capacity of 400 tpd – as the plant size of choice. This plant design would require a plot area of about 12 acres (depending on security spacing regulations) and cost approximately USD 80 Million in CAPEX (inclusive of light pre-treatment, storage, loading facilities, site engineering, utilities, control systems, electrical systems, construction and commissioning).
Once operational our pilot plant will produce 140.000 mtpa or about 7.8 Million MMBtu or about 82 Million Diesel Liter Equivalents (DLE) of LNG per year. Please also be aware that this means that the produced LNG will replace 82 Million Liters of diesel consumption at the site of electricity generation.This LNG would be used for stationary power production replacing diesel generators with gas generators.
Besides being much cleaner and quieter than diesel generators, eXcelerate LNG will be sold at agreed discount off the comparable pump price for competing fuels (diesel). However, the biggest attraction of eXcelerate LNG lie in the security and reliability of a cost effective source of constant power. This is our baseline proposition.
eXcelerate intends to use 4000m3 LNG ships from AG&P to move LNG cargos from the liquefaction point to commercial point of use/customer terminals/generation facilities. These ships have the advantage of very shallow draft which will enable it to enter all currently existing Nigerian harbors without any harbor modification being required. Those vessels will also in the future be able to bring LNG up the Niger River should this becomes desirable.
One single ship would be able to transport the entire production up to a location in and around Lagos which is our principal market. The distance from the loading point until the prospective unloading point in or around Lagos is about 340 nautical Miles (nM). If we use an economical speed assumption of 10 knots, the ship would travel one leg in 34 hours. Assuming 12 hours at the loading and the unloading port respectively, one round trip of the ship would take close to 4 days. The vessel has 4.5 days per round trip in order to keep the logistical planning intact plus vessels typically can speed up if that is required. One vessel per production train is therefore sufficient.
Nigeria flares gas that comes up with oil production at the oil drilling site and that cannot be economically used. The practice of flaring is put under penalty in Nigeria but as a proper system of collecting and syphoning the gas to a location where it can economically be used is lacking; the only way to deal with it is controlled burning. Besides being an environmental hazard for the local population, it’s also a waste of resource for the Nigerian economy.In situ power production is unsuitable in most cases as the electricity grid in Nigeria is unable to cope with the resulting surge in electricity. Likewise, the Nigerian gas pipeline grid is also unable to cope with those volumes.