FG commends SPL plant aimed at bridging gas supply gap

FG commends SPL plant aimed at bridging gas supply gap

 

 

 

The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, has commended the Southfield Petroleum Ltd., (SPL) Utorogu, Delta State, 200 million standard cubic feet per day (MMSCFD) Gas Processing Plant.

Ekpo said this on Tuesday at the groundbreaking ceremony of SPL held at the Utorogu gas processing plant site.

The News Agency of Nigeria (NAN) reports that SPL is in collaboration with the Nigerian Content Development and Monitoring Board (NCDMB), with the aim of addressing Nigeria’s persistent gas supply shortfall for power generation and industrial growth.

He said the development of the 200 MMSCFD gas processing facility would stimulate significant capital inflow, create direct and indirect employment opportunities, and catalyse industrial growth across multiple sectors.

“By increasing the availability of processed gas for the domestic market, this project will support power generation, boost manufacturing productivity.

“In addition, the production of Natural Gas Liquids, particularly Liquefied Petroleum Gas, will deepen domestic gas utilisation, reduce import dependence, and stabilise supply within the local market.

“This directly contributes to price moderation and expands access to clean energy for millions of Nigerians,” he said.

He said from an environmental perspective, the plant would contribute meaningfully to NIgeria’s gas flare reduction commitments and broader climate objectives.

“The utilisation of gas as a transition fuel supports lower carbon emissions compared to traditional fuels such as diesel and biomass, thereby advancing cleaner energy use across households and industries.

“The increased availability of LPG will help accelerate the shift away from firewood and other harmful cooking fuels, reducing deforestation, indoor air pollution, and associated health risks, particularly for women and children.

The minister said that the project holds immense promise to the host community.

“Beyond job creation during both construction and operations, it is expected to stimulate local enterprise development, improve infrastructure, and create sustainable socio-economic opportunities.

“| urge the project promoters to maintain strong community engagement, ensure inclusive participation, and deliver on corporate social responsibility commitments that will leave lasting positive impacts in the area,” he said.

Ekpo, however, said the Utorogu Gas Processing Plant represents a critical piece of infrastructure in our journey towards a gas-powered economy.

“By processing wet gas into lean gas for reinjection into the Escravos-Lagos Pipeline System, this facility will significantly enhance domestic gas supply, supporting power generation and industrial activities across the country.

“As a government, we remain committed to providing an enabling environment through transparent regulation, investment-friendily policies, and sustained support for gas infrastructure development.

“We will continue to work closely with all stakeholders-including investors, regulators, and host communities-to ensure the successful and timely delivery of this project.

“The targeted phased completion, beginning with Phase 1 by November 2026, is both commendable and achievable, and we encourage Southfeld Petroleum Ltd. to maintain this momentum,” he said.

The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, urged the community leaders to protect the facility with everything that they have.

Lokpobiri said the economic impact of this project will be substantial, saying that it would generate direct and indirect employment opportunities.

“It will also create business opportunities in logistics, fabrication, operations, maintenance, and other support services.

“For the host communities and neighbouring areas, this project will stimulate infrastructure development, create job opportunity and skills transfer, and increase commercial activities,” he said.

Speaking at the ceremony, the Managing Director of SPL Utorogu Ltd., Mr Pius Aigbomeikhe Bawa, underscored the strategic importance of the project in supporting national priorities, including the Federal Government’s “Decade of Gas” initiative.

“This project represents a major step forward in the Federal Government’s commitment to gas commercialisation, reduction of gas flaring, and the advancement of Nigeria’s energy transition goals.

“It will not only strengthen domestic gas supply but also create sustainable economic opportunities for our host communities and the nation at large,” Bawa said.

He added that the Utorogu Gas Processing Plant would enhance domestic gas availability for power generation and industrial growth and support the Federal Government’s gas flare reduction initiatives.

Mr Felix Ogbe, the Executive Secretary of NCDMB, said the investments would make significant contributions to the economic growth and development of the Niger-Delta and Nigeria as a whole.

“The event marks the milestone in the Board’s collective drive to deepen Nigerian content, expand domestic gas utilisation, and accelerate Nigeria’s transition to a gas-powered economy in line with the Decade of Gas’ declaration.

“Today’s ceremony is a testament to the power of strategic collaboration.

“This project represents a partnership between the Nigerian Content Development and Monitoring Board and Southfield Petroleum Limited under the special purpose vehicle, SPL Utorogu Ltd.

“This is, indeed, a reflection of the board’s commitment to promoting bankable investments that will make significant contributions to the economic growth and development of the Niger-Delta and Nigeria as a whole.

According to him, the 200mmscfd gas processing facility to be developed here is designed to process wet gas from the OML 34 field, remove impurities, and produce valuable products including Liquefied Petroleum Gas.

“Propane and condensate, while also supplying lean gas into the domestic pipeline network.

He said when the processing plant is completed it is expected to produce approximately 123,000 metric tonnes of LPG per annum. This will significantly improve domestic cooking gas availability and reduce reliance on LPG importation.

“Beyond LPG production, the project will also deliver about 22,000 metric tonnes of propane and 72,000 metric tonnes of condensate annually, thereby improving value extraction from Nigeria’s gas resources and strengthening the midstream value chain,” he said.