- The Federal Government reaffirmed its commitment to a gas-powered economy by commissioning the Otakikpo LPG and Gas-to-Power Project in Rivers State.
- The project aims to reduce flaring, create jobs, and provide power to local communities, supporting President Tinubu’s economic transformation agenda.
The Federal Government has committed to transforming Nigeria’s economy through renewable gas energy. Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo made this statement at the commissioning of the Otakikpo LPG Extraction Plant and 20MW Gas-to-Power Project in Andoni Local Council, Rivers State.
The project was built by Green Energy International Limited/Lekoil Joint Ventures.
In addition, Ekpo said the Ministry of Petroleum Resources (Gas) will help drive the gas sector under President Bola Tinubu’s leadership. Nigeria has an estimated 209 billion cubic feet of gas reserves. Ekpo added that the Otakikpo plant aligns with President Tinubu’s Renewed Hope Agenda to make Nigeria a gas-powered economy.
The minister praised the joint venture for following the Petroleum Industry Act (PIA) 2021. He highlighted the creation of First Otakikpo Midstream Limited (FOML), which will manage the gas business. He also welcomed the licensing of FOML by the Nigerian Midstream and Downstream Petroleum Development Authority.
Ekpo commended the joint venture for tapping into Nigeria’s vast gas reserves. He noted the positive environmental and economic impacts, such as flare eradication, carbon footprint reduction, job creation, and improved community well-being.
He assured the company of the Federal Government’s continued support to boost investments in the gas sector.
Professor Anthony Adegbulugbe, Chairman of Green Energy International Limited, said the commissioning fulfilled the joint venture’s commitment to the Federal Government. The initiative is part of the World Bank Gas Flares Reduction Programme, which aims to monetise associated gas for domestic use, power generation, and other products.
Adegbulugbe stated that the plant is running at 60% capacity. The company plans to expand LPG and LNG production as more wells come online. Instead of the original 15MW, the project now provides 20MW of gas power. The excess power will be used for industrial purposes and benefit the surrounding communities.
The joint venture has set up a task force to work with the Host Communities Development Trust Funds (HCDTs) to ensure power reaches local areas.
Communities in the region expressed excitement about the new power supply. Chief Gad Harry, a representative of the host communities, said access to electricity would improve business activities and create jobs.
He added, “We are on the threshold of having light in our communities. This will boost our commercial activities and provide jobs for our children.”