First modular LPG extraction, 20-MW gas-to-power plants start operations in Rivers

The Federal Government has commissioned two critical gas and power infrastructure in Otakikpo, in Andoni Local Government Area of Rivers State.

The projects, a 12-million cubic feet gas extraction plant and 20-megawatts gas power plant.

Inaugurating the project, the Minister of State for Petroleum (Gas), Mr Ekperikpe Ekpo said coming on stream of the projects is pivotal for actualising Nigeria’s vision for adopting gas as the transition fuel of choice especially as the global discussion of energy sustainability gathers momentum.

He asserted that the plants were built by Otakikpo Joint Venture comprising of Green Energy International Limited, the operator and Lekoil Oil and Gas Investment Ltd, the technical partner of the Otakikpo field PML 11 in the state.

Ekpo who commended the joint venture on the initiative, said that the mandate of President Bola Tinubu to him was to drive the development of the gas sector in the country, with a dedicated and strategic focus on development of Nigeria’s natural resources (gas) noting that Nigeria ranks eight in the whole world and largest in Africa with 33 percent of Africa gas reserve.

The Minister stated; “The creation of the Ministry of Petroleum Resources (Gas) by Mr President reflects the foresight and wisdom of Mr President in ensuring a dedicated and strategic focus on development of our natural resources (gas).

“It is gratifying to observe that the joint venture has made significant strides in complying with the provisions of the Petroleum Industry Act (PIA), 2021 particularly your establishment of the distinct midstream entity First Otakikpo Midstream Limited (FOML), to manage the gas business.”

Ekpo assured that the present administration would remain committed to supporting the JV’s aspirations as they continue to expand their investment blueprint within Nigerian gas sector, saying; “Another remarkable and commendable milestone worthy of recognition is the development of the 20 megawatts gas to power generation plant which I understand is being deployed to support your rapidly expanding field operations”.

He stressed that the excess power generated from the power plant would be made available to local industries through the establishment of an industrial park targeting agro-allied ventures, small and medium scale enterprises and the surrounding communities.

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Commending the youths of the area for their peaceful disposition while the project was ongoing, the Minister expressed confidence that the initiative would stimulate economic activity in the region and significantly improve the standard of living for the host communities”.

Chairman of Green Energy International Limited, Operator of Otakikpo field, Prof Anthony Adegbulugbe, in his address explained that the inauguration of the twin projects was the realisation of the firm’s commitment to the federal government to implement a pilot project of the World Bank Gas Flares Reduction Programme (GFRP), based on Small Scale Gas Utilization Programme (SSGUP).

He explained that their idea was to provide a unique model that ensures oil exploration from the field that not only eliminates gas flares but ensures that associated gas is monetised through utilisation for domestic gas, power generation and other products in the value chain for the economic advancement of the host communities and the nation generally

Prof Adegbulugbe explained that the field was awarded to Green Energy International Ltd in 2014 by the Federal Government, even as he disclosed that the project suffered over 20 months of setback with the COVID-19 pandemic which shut down the entire world.

“But by the grace of God, the Joint Venture undaunted by the unexpected set back at a huge cost overrun, rebounded, and by January last year, we started a test run. At completion, the two projects cost the JV over $60million”.

He added that the installation and operations of the plant was implemented 100 percent by Nigeria young men and women who cut across a wide spectrum of professional backgrounds with significant number from the Niger Delta and Host communities.

“The workforce are managed by a set of world-class professionals at the board and management levels”, the Green Energy International boss declared.

He appreciated the cooperation of the technical partner Lekoil, Oil and Gas Company led by the Chief Executive Officer, Mr Olalekan Akinyanmi, saying “Upon entering into a partnership with us, the company aligned with our vision, and we have jointly achieved this successful outcome”.

In his own remarks, the Lekoil boss, Mr Olalekan Akinyanmi said the event marked a significant milestone not just for Lekoil and Green Energy International but for Nigeria’s energy future.

“The commissioning of the Otakikpo LPG Extraction Plant and the 20MW Gas-to-Power Project is a testament to the power of collaboration, vision, and unwavering commitment to sustainable energy solutions”, he said.

Akinyanmi stated; “From the very beginning, our partnership has been anchored on a shared mission to unlock the full potential of the Otakikpo Field, harness our nation’s vast gas resources, and drive economic transformation through reliable power generation.

“What we see here today is a direct result of that synergy. Together, we have demonstrated that when companies align their strengths, expertise, and ambition, we can deliver innovative solutions that benefit not just our stakeholders, but the communities and industries that rely on us”.

He also expressed his gratitude to Green Energy International, their partners, the government, and all those who contributed to making the project a reality.

Meanwhile, communities in the area have expressed joy over the possibility of being powered from the excess electricity from the newly inaugurated facility.

Chairman of the Ikuru Town Host Community Development Trust, Prof. Lycias D. Gilbert, expressed gladness that a project of that nature was being commissioned in their community.

He declared; “As natives of Ikuru Town community we believe that this project will impact positively on our community to a very great extent. So it’s an investment for the settlor while a developmental for us in our community.

“So we are very glad. We want to commend the management of the JV for establishing this project here on our land and we look forward to the fact that very soon as part of their Corporate Social Responsibility, through the gas that is being generated here that our community will have electricity very soon, to the glory of God so as to establish an organic relationship between us and the JV”.

Also speaking, Chief Gad Harry who spoke on behalf of some host communities which includes Ugama-Ekede, Ayama-Ekede, Asuk-Ama and Asuk-Oyet, said they had yearned to get connected to national electricity grid by the company as reflected in the several memoranda entered between the company and the joint ventures.

He noted that powering the communities would help to enhance commercial activities in the area

“From day one when we signed our MoU with them, the issue of light was there. It was there in the second MoU and it’s still there till today but thank God we have moved a step towards having light in our communities.

“We are on the threshold of having light in our communities and that would enhance our commercial activities, enhance employment opportunities for our children,” he stated.

NIGERIAN TRIBUNE