FG approves LPG extraction plant in Rivers

LPGDEPARTMENT of Petroleum Resources (DPR) has given approval for the construction of the 12MMSCFD capacity liquefied Petroleum Gas (LPG ) extraction plant at Ikuru Town in Rivers state, by Green Energy International Ltd, the Operator of the Otakikpo marginal field in OML 11.

The approval to construct (ATC) of the 12MMSCFD capacity plant was issued to the company sequel to successful submission of the detailed engineering design(DED) of the plant which licence to establish (LTE) was issued in 2017.

The engineering design was produced under the supervision of the indigenous operator by the contractors :PCC-LAMBDA Consortium, formed between Nigeria Indigenous companies and a Chinese company -Peiyang Chemical Equipment Co. Ltd (PCC), who is the original equipment manufacturer (OEM) and will be responsible for manufacturing and design activities associated with this project.

The company which began production in February 2017 said it was determined to ensure full utilization of the gas produced from the field for LPG and power generation amongst other projects.

The company’s Director of Legal and Corporate services, Mr Olusegun Ilori explained that the gas utilization plant involves the use of the lean gas to power the 12MW gas generator at Otakikpo field out of which 5MW would be dedicated to the host communities in line with its MOU with the government while the LPG & propane would be bottled and part of the LPG shall be for domestic use within Otakikpo communities in order to support small-scale industries to stimulate the economy of the Niger Delta.

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He said the company appreciate the support of the DPR in ensuring prompt approval as it serves as a booster for the company’s effort to fulfil its obligations as a pilot project approved by the government for zero gas flares operation in the Niger Delta.

He said the LPG plant which is expected to be completed within the 12 months schedule would be a booster for Nigeria’s drive toward utilization of gas resources for domestic gas.

The company recently delivered 6 MW gas generator to the community while the other batches will arrive in the year.