The agreement was reached on Wednesday at the conclusion of the inaugural US-Nigeria Governors Government-to-Business (G2B) Forum on Energy, Mining and Infrastructure held at the Sweet Water Country Club in Sugar Land, Texas.

The forum, facilitated by Westpaq International in collaboration with the United States Department of Commerce and the US Commercial Service in Houston, brought together Governor Douye Diri, representatives of Nasarawa, Ogun and Ondo states, and more than 15 American companies operating in the energy, mining and financial sectors.

Companies represented included Honeywell, KBR, Worley, Lummus Technology and VGas.

The proposed Bayelsa project will be implemented in phases, beginning with the collection and commercialisation of natural gas currently being flared in the state. The recovered gas is expected to support electricity generation through the state's Independent Power Plant and provide energy for emerging industrial clusters.

A broader gas monetisation and development programme is expected to follow, with the aim of harnessing Bayelsa's natural gas resources for economic activities.

Speaking after a meeting with Governor Diri, Fulcrum LNG Chief Executive Officer, Jesus Bronchalo, said the company would begin with a comprehensive assessment of gas flare sites across the state.

He explained that the study would establish the volume and locations of gas being flared, identify the reasons behind the practice and determine the technology and infrastructure required to collect and process the gas.

Bronchalo noted that some flare locations could be too remote or commercially unviable for gas collection, making the feasibility assessment necessary before determining the scope and cost of the proposed investment.

He disclosed that Fulcrum LNG was undertaking a similar project in Guyana valued at approximately $3 billion, but stressed that the investment requirement for Bayelsa would only become clear after the assessment.

According to him, the company hopes to complete the period between the final investment decision and commissioning within about 12 months, although this would depend on the project's development and implementation.

Bronchalo also explained that Fulcrum LNG generally provides the investment capital for its projects, while any government decision to acquire an equity stake would require a corresponding financial contribution.

Governor Diri described the partnership as an opportunity to address environmental concerns associated with gas flaring while supporting the state's industrialisation plans.

He expressed his administration's readiness to facilitate the project and attract investments capable of improving economic activities and creating opportunities for residents.

The proposed facility could help Bayelsa capture gas that would otherwise be wasted through flaring and redirect it towards electricity generation and industrial use.

However, the project is still at the assessment stage, with its final investment value, technical requirements and implementation arrangements yet to be established.

Reporting by TalkNaijaMedia