By Shout-Africa’s Cameroon correspondent – The project is expected to make available 35 million litres of Heavy Fuel Oil (HFO) for export every year as a result of HFO users converting to natural gas.
Cameroon’s Industry, Mines and Technological Development Minister, Ndanga Ndinga Badel, presided over the launching ceremony of the Logbaba Gas Project works in the nation’s economic capital, Douala, yesterday. The launching of the project follows presidential decree N°2011/112/ of April 29, 2011, granting Rodeo Development Limited (the operator of the Logbaba Gas Field) the Exploitation License, so construction will begin immediately on the gas processing plant and pipeline to customers.
The plan is to achieve first gas delivery at the end of September 2011 to industries in Douala and to complete the pipeline system on the east of the Wouri River by the end of this year. “We plan to further develop markets for using gas for onsite or near site power generation,” said the Managing Director of Rodeo, Jonathan Scott-Barrett. Gas from Logbaba Gas Field is a lean gas and recovery of Liquid Petroleum Gas (LPG) such as butane and propane is not economic. The Field will export a rich gas in safe standards for use at customer sites for substitution of Heavy Fuel Oil (HFO) and Waste Oil.
The initial development will not produce bottled gas for domestic and industrial usages. The operator company plans to prove additional reserves through a $60 million, 4 well-drilling programme in 2013-2014. In the likely event that this programme proves additional reserves of gas in other structures identified in the block, then Rodeo, in partnership with an Independent Power Producer (IPP), will develop a larger than 250 MW gas fired power station.
The project is expected to make available 35 million litres of Heavy Fuel Oil (HFO) for export every year as a result of HFO users converting to natural gas. The project is expected to generate 300 jobs during construction operations while 100 others will be employed as staff once production operations commence.
“We are working with the National Employment Fund on recruitment of our staff and are working with our contractors to ensure that all our activities are in conformance with the Labour Code of 1992”, added the Managing Director. Other benefits to Cameroon involve further industrial development and investment in Douala due to reliable energy supplies; reduction of pressure on the National Electricity Grid thereby making Cameroon more attractive for inward investment; additional jobs will be created for large and small local companies supporting the project; 26 million litres of waste oil will be removed from the markets every year as a consequence of waste oil users converting to natural gas. Rodeo has spent $58.3 million to date out of total forecast expenditure to deliver gas to Central, SE, and SW Douala by end of this year of $80.7 million.