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Bayelsa Partners US Energy Firm on Gas Project to Cut Flaring to Power Industries and Homes
The Bayelsa State Government has struck a partnership with United States-based energy company, Fulcrum LNG Incorporated, to develop a gas gathering and processing facility designed to reduce gas flaring and provide fuel for power generation and industrial activities across the state.
The agreement was reached on Wednesday at the inaugural US-Nigeria Governors Government-to-Business Forum on Energy, Mining and Infrastructure in Sugar Land, Texas.
A statement issued by the Governor’s Chief Press Secretary, Daniel Alabrah, said the proposed project would be implemented in phases, beginning with the recovery and commercialisation of natural gas currently being flared in different parts of the state.
The recovered gas is expected to provide additional fuel for Bayelsa’s Independent Power Plant and support emerging industrial clusters.
The second phase will involve a wider gas monetisation and development programme aimed at unlocking more value from the state’s extensive gas reserves.
Speaking after a meeting with Governor Douye Diri, Fulcrum LNG Chief Executive Officer, Jesus Bronchalo, said the company would first carry out a comprehensive field assessment of gas flare sites across Bayelsa.
According to him, the study would determine the volume of gas being flared, the locations of the flare sites and the infrastructure required to capture, transport, process or reinject the gas.
Bronchalo explained that not every flare site might be economically viable for recovery, particularly where the facilities are located in remote areas.
“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.
The Fulcrum LNG CEO said his company was prepared to provide the investment required for the project, while the Bayelsa government could take an equity position if it chose to contribute 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, however, said the actual cost of the Bayelsa project would only become clear after the feasibility study.
He expressed optimism that, once a final investment decision was reached, the project could move from investment approval to commissioning within about 12 months.
He cited a similar project being undertaken by the company in Guyana, which he said was valued at about $3 billion, but stopped short of putting a figure on the proposed Bayelsa investment.
Governor Diri described the proposed partnership as a “win-win” arrangement, saying the project could simultaneously tackle the environmental damage associated with gas flaring and provide the energy needed to drive industrial growth.
“Our interest is how this project will reduce the effects of environmental pollution on our people and boost our industrialisation drive,” Diri said.
The governor assured Fulcrum LNG of his administration’s commitment to creating the necessary environment for the project, noting that his government had approximately 15 months remaining in office.
Diri also used the forum to highlight Bayelsa’s strategic position in Nigeria’s oil and gas industry.
According to him, the state accounts for an estimated 15 to 20 per cent of Nigeria’s proven gas reserves and supplies about 60 per cent of the gas used by Nigeria LNG Limited in Bonny, Rivers State.
Beyond gas, the governor pointed to Bayelsa’s 203-kilometre Atlantic coastline and the proposed Agge Deep Seaport as major opportunities for investment in energy, logistics 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 attracted representatives from Bayelsa, Nasarawa, Ogun and Ondo states, alongside 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 support the development of infrastructure for the country’s natural gas resources, including gas processing and monetisation.
However, Reuters reported in October 2026 that Guyana was considering scaling back its LNG export ambitions amid competing demands for natural gas to support its rapidly expanding oil production.
For Bayelsa, the proposed gas project remains at the assessment stage. The immediate next step is for Fulcrum LNG to conduct its field study and feasibility assessment, which will determine the technical requirements, commercial viability and eventual investment size of the proposed facility.
