Logbaba Gas Plant: Oil Processing, Job Creation in View

The multi-billion Franc Logbaba Gas Project in Douala has been launched and construction work expected to begin immediately on the gas processing plant and pipeline. Launching the project on Wednesday June 22, the Minister of Industries, Mines and Technological Development, Badel Ndanga Ndinga, revealed that the first delivery of gas from the project is expected by the end of next September and construction of the pipeline on the East end of River Wouri due for completion by the end of 2011.

The project is expected to export 35 million litres of Heavy Fuel Oil (HFO) each year. « We are working with the National Employment Fund on recruitment of our staff and with contractors to ensure that all our activities conform with the Labour Code, » explained Jonathan Scott-Barrett, Managing Director of Rodeo, the company granted production license in the gas field earlier this year by a presidential decree. « We plan to further develop markets by using gas for onsite or near site power generation, » he added. Rodeo has so far spent $58.3 million (about FCFA 26.8 billion) out of a total projected expenditure of $80.7 million (about FCFA 37.1 billion) to deliver gas to Douala by the end of 2011.
Benefits of the project to the economy include further industrial development and investments in Douala as a result of reliable energy supply, reduction of pressure on the National Electricity Grid thereby making Cameroon more attractive for more investments, creation of 300 jobs during construction and 100 others when it goes operational, removal of 26 million litres of waste oil from the markets each year as waste oil users convert natural gas.

Gas from Logbaba Field is lean and recovery of Liquid Petroleum Gas (LPG) such as butane and propane expected to be easier. The field will export a rich gas in safe standards for use at customer sites to replace Heavy Fuel Oil (HFO) and Waste Oil. The initial development will not produce bottled gas for domestic and industrial use. Rodeo plans to spend an additional $60 million (about FCFA 27.6 billion) in exploration by drilling four wells between from 2013 to 2014. If the findings are good, Rodeo, in partnership with an Independent Power Producer (IPP), will develop a 250-megawatt gas fired power station.

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