The feasibility and market analysis for establishing a modular gas processing plant with a capacity of 15 MMSCFD in Nigeria highlights significant opportunities and considerations within the country’s gas sector.

Introduction
Nigeria, endowed with substantial natural gas reserves, presents a favorable environment for the development of modular gas processing plants. The proposed facility aims to capitalize on the growing domestic demand for Methane, Propane & Butane, particularly in industrial applications and power generation.

Market Potential
The Nigerian gas market is currently underutilized, with only about 15% of its potential being realized. The demand for natural gas is increasing due to its role as a cleaner alternative to diesel and other fossil fuels, especially in power generation and industrial processes. The government's initiatives to promote gas utilization, including favorable tax regimes and incentives, further enhance the market attractiveness for new entrants.

Technical Feasibility
The proposed modular gas processing plant will leverage advanced technology to ensure efficient processing and minimal environmental impact. Modular systems are advantageous due to their scalability and ease of relocation, making them suitable for Nigeria's diverse geographical landscape. The plant is designed to operate at optimal capacity, with projections indicating a utilization rate of 40% to 60% in the initial years, which can increase with market penetration and demand growth.

Financial Considerations
Initial capital investment for the plant is estimated to be around $10 million, with an additional working capital requirement of approximately $1.5 million to secure gas supply contracts. The projected net margin in the first year is very attractive , with a potential for full investment recovery within two years if operational efficiencies are achieved.

Regulatory Environment
The Nigerian government has implemented various policies to promote local content and investment in the gas sector. The plant will benefit from a reduced royalty rate on gas revenues and potential tax holidays, which can significantly enhance the project's financial viability.

Conclusion
The establishment of a modular gas processing plant in Nigeria represents a viable investment opportunity, supported by strong market demand, favorable regulatory conditions, and the potential for substantial returns. The project's success will depend on strategic partnerships, efficient operations, and effective market engagement to fully exploit Nigeria's gas potential.