March 2022
In this feasibility study, SEABRIDGE targets to execute this pioneer project targeting Fleet owners such as those that drive routes starting and ending in the same location, factories and manufacturing companies, by retrofitting them to be well suited to use CNG as the fuel. The study also depicts the technical and commercial benefits of this project by exploring all the intricate aspects of the project ranging from natural gas feed stock, drying, filtering, compression, storage, dispensing, maintenance, Health Safety and Environment and financial projections.
The Federal Government of Nigeria through its National Gas Expansion Program put in place by the Honourable Minister of State for Petroleum Resources in furtherance of the domestic gas expansion program, is determined to reinforce and expand domestic gas supply and stimulate demand in the country. Part of the deliverables of this program include the development of a strong domestic gas-based economy by leveraging on the nation’s abundant gas potentials, promotion of gas as replacement fuel which will also save the nation the much needed foreign exchange expended on imported fuels and provide alternatives to PMS, AGO, and DPK for Nigerians. Seabridge CNG is taking advantage of the opportunity presented by this program to be a major player in the gas revolution of the country.
JOINT VENTURE PARTNERS TO THE PROJECT
NNPC GAS & POWER INVESTMENT LTD (NGPIC)
NNPC Gas & Power Investment Company is the newly privatised and wholly owned by the Nigerian National Petroleum Corporation (NNPC). Their mandate is to promote gas utilization as a cleaner fuel and maximize value from Investments across the LNG and power value chains as well as the Gas Based Industries (GBIs). NGPIC has created a SPV with a mandate to invest in gas based projects (CNG, LPG, IPP and other petrochemical businesses) For the sales of CNG & LPG NNPC retail outlets will be utilised.
PROJECT SUMMARY
SPONSOR COMPANY: Seabridge Petroleum Ltd
PROPOSAL: Business plan for construction and operation of Compressed Natural Gas (CNG) Plant using CBN Gas Expansion Fund;
INVESTMENT REQUIREMENT: NGN10,000,000,000 Ten billion Naira;
SIZE OF LAND REQUIRED / PROPOSED LOCATION: 5,000 sq. metres of land with high proximity to the Excravos-Lagos Pipeline System (ELPS) in Sagamu, Ogun State or alternatively outside the Lekki Free Trade Zone;
PAYMENT SOURCE: Sales of CNG purchase tickets to fleet owners, factories, manufacturing companies through cashless digital system; and
LOCAL CONTENT – ECONOMIC JUSTIFICATION: Assembling of compressors and other machineries in Nigeria would provide employment, technology/knowledge transfer, contribute to reduction of carbon emission and substantial reduction of transportation fares in cities operating due to cheaper fuel.