THE Federal Government has approved the establishment of a Liquefied Petroleum Gas (LPG ) extraction plant at Ikuru Town in Rivers state for Green Energy International Ltd, the Operator of the Otakikpo marginal field in OML 11.
According to the company’s director of Legal and Corporate matters Segun Ilori, License to Establish (LTE) of the 12MMSCFD capacity plant was issued to the company by the Department of Petroleum Resources (DPR) as the company moves to fulfill its obligations as a pilot project approved by government for zero gas flares operation in the Niger Delta.
The company which began production in February 2017 said it was determined to ensure full utilisation of the gas produced from the field for LPG and power generation.
It stated that the approval has made it possible for the company to make final investment decision (FID) by awarding the Engineering, Procurement, Construction & Installation of the LPG Extraction Plant to 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 LPG Extraction plant has the following design output capacities
The company’s Director of Legal and Corporate services, Mr Olusegun Ilori explained that the gas utilisation programme 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 sold. Part of the LPG shall be for domestic use within Otakikpo communities in order to support small-scale industries.
He said the LPG plant which is expected to be completed within 12 months would be a booster for Nigeria’s drive toward utilization of gas resources for domestic gas is expected to be completed within 12 months.
The company recently delivered a 6MW gas generator to the community while the other batches will arrive in the new year.