Ace Gas and FLNG Limited and Wison New Energies Officially Commenced FEED Phase for 3MTPA FLNG and 250MW Power Barge Project

Ace Gas and FLNG Ltd, a subsidiary of the Ace Energy Group, a vertically integrated energy company, proudly announces the official commencement of the Front-End Engineering and Design (FEED) phase for its groundbreaking 3MTPA Floating Liquefied Natural Gas (FLNG) and 250MW Power Barge project.

The FLNG and Power Barge is complimented by an expanded gas gathering network comprised of compression stations and gas delivery lines that will allow gas delivery to the FLNG from multiple gas assets for a radius of over 60KM.

Ace Gas and FLNG, in partnership with G&G Technologies, has already completed FEED design for self-propelled marine barges fuelled by LPG with a capacity of 4000MT that will support regional and inland distribution of LPG and LNG.

This transformational integrated project strongly aligns with the policy direction of the federal government of Nigeria, the NUPRC and the NMDPRA as well as the NNPC towards a gas centric economy that will create alternate and cheaper energy commodities. It will create market access for over 500MMSCFd of gas, allowing upstream operators around the Escravos area to monetize not just their NAG resources but also their flared gas. It offers a sustainable and economic solution for methane abatement in alignment with Nigeria’s international commitments. It also boldly announces Nigeria as a leader in floating gas solutions while securing additional market share of the global gas economy in a space brimming with significant competition. It also guarantees significant revenues for the Federal Government of Nigeria and all stakeholders.

The official FEED signing ceremony, which took place at Wison’s headquarters in Shanghai on the 6th of December 2024, was attended by two of Ace Energy Group’s  Directors – Mr Collins Oguike and Mr Oluwafisayo Ishola and Wisons Top Executives lead by Mr Alex Yuan, marks a crucial milestone in advancing the monetization of Nigeria’s abundant gas resources, bolstering domestic energy security, and promoting sustainable economic growth for Nigeria.

The visit to Wison in Shanghai also allowed the Ace Team to visit Wisons’ massive shipyards to gain an appreciation of execution capacity.

Building on the successful completion of the Pre-FEED phase in July (earlier this year), the commencements of the FEED is a significant achievement that takes the project one step closer to unlocking over 5TCF of offshore and swamp gas reserves over a 30 year window at a daily rate of 500MMSCFd.

With the unwavering support and oversight of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the FEED phase will streamline the critical engineering, design, and planning processes, ensuring a robust foundation for full-scale project execution.

The FLNG facility, strategically located offshore in Escravos, will supply 3 MTPA of LNG to international markets, as well as provide 200,000 MT per year of LPG to largely domestic and regional African markets. 25,000 bopd of condensates, and 75,000 MT per year of propane will also be produced and will be exported through our partner international traders. In addition, the integrated 230MW Power Barge will deliver consistent and reliable power to our compression stations that are running on the e-drive concepts to minimize emissions. Surplus power from the power barge will be exported to the local grid to support strategic local energy hubs and boost productivity.

Altogether, the project is poised to create more than 1,000 direct jobs and an estimated 5,000 indirect positions, reinforcing local capacity building, technology transfer, workforce development, and enduring socio-economic benefits.

This FEED milestone underscores the importance of collaboration with key partners.

Wison New Energies, a globally recognized leader in FLNG solutions, will spearhead the FLNG and Floating Power Barge design and, ultimately, the engineering, procurement and construction (EPC) phase.

2H Engineering has been selected to drive the FEED design for the upstream gas gathering infrastructure (wellhead and compression CSPs and gas gathering and delivery pipeline network) and collaborate with SAMSUNG HEAVY INDUSTRIES in the construction and field deployment of these systems.

SIEMENS ENERGY will provide world-class power and compression systems. Pipeline supply and project management is being supported by SCANTECH INTERNATIONAL, while BUREAU VERITAS will be providing safety studies amongst other key services.  Upstream Well Delivery for operated assets will be lead by HALLIBURTON. Feed Gas supply is guaranteed from our own operated and partner assets. We have also entered into a strategic business partnership with the GACN to support feed gas sourcing to supplement own resources. Finally, we are in talks with the NNPC and its JV partners to build further feedstock supply resilience.

To make the project a huge success, there are already advanced fixed term offtake negotiations with leading global LNG commodity traders. Together, these partnerships ensure the project’s viability and guaranteed delivery. We also enjoy very strong support from leading financial institutions and private equity firms that assures us of sustained funding throughout the critical design, construction and deployment phase of the project. We thank our upstream partners and asset owners who are the backbone of this collaboration.

Commenting on the commencement of FEED, Engr. Christopher Nwokolo, Group CEO of Ace Gas and FLNG Limited, remarked, “The official launch of the FEED phase represents a transformative moment for Nigeria’s energy landscape. By harnessing our abundant gas resources and working in close collaboration with Wison New Energies, NMDPRA, and our distinguished partners, we are moving closer to delivering clean, reliable, and sustainable energy solutions. We are immensely grateful for the support we have received from all stakeholders, including the government and regulatory authorities, as we strive to realize our vision of long-term energy security and economic prosperity.”

Ace Energy Group remains committed to delivering integrated energy solutions that drive local empowerment, enhance national energy resilience, and establish new benchmarks in the global energy sector. The signing milestone in Shanghai reaffirms the company’s dedication to responsible resource utilization, innovation, and a future built on sustainable energy infrastructure.