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VFuels wins FEED contract for new refinery in Nigeria

VFuels has successfully delivered several modular refinery projects in Africa, including in Nigeria and Liberia. Picture: VFuels LLC

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VFuels LLC, a Houston- based oil and gas engineering firm, has signed a Front-End Engineering Design (FEED) contract with HSI Refining & Petrochemical Company Ltd for a modular refinery project in Nigeria.

The contract, which was announced on 17th November, covers the design and engineering of a 5,000 barrels per day (bpd). The refinery will process crude oil produced from a marginal field located in Abia State. The project is expected to be completed in 18 months and will produce  Naphtha, Kerosene, Diesel, and Heavy Fuel Oil for the domestic market. 

“The refinery is set to play a crucial role in meeting the growing demand for energy products in Abia state as well as fulfilling the need for decentralized refining infrastructures in Nigeria,” Vfuels said in an official statement.

VFuels specializes in modular process equipment for the oil and gas industry, and has experience in designing and fabricating modular refineries, gas plants and early production facilities.

Earlier this year, VFuels announced that it has been selected to carry out expansion works at the Waltersmith Ibigwe Refinery in Imo State. The contract allows VFuels to double the refinery’s capacity to 10,000 barrels per day (bpd), after it designed and installed the 5,000 bpd Phase, which was commissioned in 2020.

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Perenco opens the tap on new Gabon LPG unit

Gabon’s Transition President General Brice Clotaire Oligui Nguema has inaugurated Perenco’s Batanga LPG Plant last week, marking another critical milestone in the roll out of Perenco’s gas monetisation strategy in Central Africa. Perenco is a pioneer in the monetisation of associated gas in the Gulf of Guinea where it is deploying innovative solutions to reduce flaring and process gas for the production of electricity, liquefied petroleum gas (LPG) or liquefied natural gas (LNG). In the 2000s, it commissioned a high pressure offshore pipeline network of over 400km in Gabon, including a compression station at Batanga to supply previously flared gas to the power stations of Libreville and Port Gentil. Additional compressors have been installed since to further reduce flaring, with volumes averaging 50 MMscf/d. The commissioning of the 15,000 tonnes per year (tpy) LPG unit at Batanga represents the next step in an already successful strategy of monetising local resources in Gabon. It will help the country cut imports of cooking gas by a at least a third, and will be followed by the commissioning of the 0.7 tpy Cap Lopez LNG terminal in 2026. Perenco is also progressing the development of a 21 MW gas-to-power plant at Mayumba in the south of the country, in collaboration with the Gabon Power Company.

Nigeria and Germany sign gas deal and clean energy investment agreement

Nigeria and Germany have signed a historic agreement that will see Africa’s largest oil producer supply more gas to Europe’s biggest gas consumer. In an MOU signed by Nigeria’s Riverside LNG project, which works in the country’s Niger Delta, and Germany’s Johannes Schuetze Energy Import, Nigeria will export 850,000 tons of liquefied natural gas per year to Germany. The agreement also includes a provision for export volume to increase to 1.2 million tonnes in future. Under the deal, Nigeria is expected to export its first deliveries of liquified natural gas (LNG) to Germany in 2026, which will account for 2% of Germany’s total LNG imports. The deal was signed at the G20 Compact with Africa conference in Berlin on November 21, 2023, according to an official statement from the Nigerian presidency. In addition to the gas deal, Germany has pledged to invest $500 million in renewable energy projects in Nigeria, with a primary focus on rural communities. The investment is expected to create jobs and power sustainable economic growth in the country. “This agreement marks a new era of cooperation between our two countries,” Nigerian President Bola Ahmed Tinubu said. “It is a testament to the strong relationship between Nigeria and Germany and our shared commitment to sustainable development.” Nigeria’s economy, which has been grappling with the impact of falling oil prices in recent years, is expected to benefit positively form the gas deal and renewable energy investment.  The deal will also help Germany meet its energy needs while reducing its reliance on fossil fuels.