SPL announces groundbreaking for Utorogu Gas Processing Plant

SPL Utorogu Limited, an indigenous energy company focused on the development and operation of gas infrastructure assets in Nigeria, has held the official groundbreaking ceremony for its gas processing plant project in Utorogu, Delta State.

The event, which took place on Tuesday, marks a significant step in Nigeria’s drive toward enhanced gas utilisation, improved energy security, and sustained economic growth.

The project, designed as a state-of-the-art gas processing facility, is expected to play a pivotal role in harnessing the country’s abundant natural gas resources. With a planned processing capacity of between 200 and 300 million standard cubic feet per day (MMSCFD), the plant will produce key outputs including Liquefied Petroleum Gas (LPG), condensate, and autogas for both domestic and industrial use.

Speaking at the ceremony, the Managing Director of SPL Utorogu Limited, Engr. Pius Aigbomeikhe Bawa, highlighted the strategic importance of the project in supporting national priorities, particularly the Federal Government’s “Decade of Gas” initiative.

He noted that the project aligns with ongoing efforts to deepen gas commercialisation, reduce gas flaring, and advance Nigeria’s energy transition agenda.

“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 said that the Utorogu Gas Processing Plant would significantly enhance domestic gas availability for power generation and industrial expansion while supporting ongoing gas flare reduction initiatives.

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Bawa further disclosed that the facility, with a core capacity of about 200 MMSCFD, will process wet gas from the OML 34 field, remove impurities, and produce valuable products such as LPG, propane, and condensate. It will also supply lean gas into the domestic pipeline network.

Upon completion, the plant is expected to produce approximately 123,000 metric tonnes of LPG annually, a development expected to boost local cooking gas supply and reduce Nigeria’s reliance on LPG imports.

Beyond energy supply, the project is projected to generate employment opportunities during both construction and operational phases, while also contributing to infrastructure development in the host community.

The project is being developed in collaboration with key industry stakeholders, regulators, and technical partners to ensure compliance with global best practices in safety, environmental sustainability, and operational excellence.

Also speaking at the event, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Ogbe, described the project as an auspicious development in Nigeria’s efforts to deepen local content and expand domestic gas utilisation.

He noted that the initiative represents a strategic partnership between the NCDMB and Southfield Petroleum Limited under a special purpose vehicle, SPL Utorogu Limited.

“This project is a reflection of the Board’s commitment to promoting bankable investments that will significantly contribute to the economic growth and development of the Niger Delta and Nigeria as a whole,” Ogbe said.

He added that the board’s investment aligns with its mandate to promote in-country value addition, develop indigenous capacity, and support infrastructure that unlocks Nigeria’s vast gas potential.

According to him, the partnership also demonstrates a shift from policy advocacy to active participation in transformative energy projects.

In his remarks, the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, said the plant would support Nigeria’s transition to a gas-based economy by reducing gas flaring and converting resources into commercially viable products.

He emphasised that the facility would enhance gas supply for power generation, boost industrial activities, and improve overall energy security in the country.

“The development of this facility will increase gas supply for power generation, boost industries and improve energy security in the country,” Ekpo said.

The groundbreaking ceremony attracted government officials, industry leaders, and community representatives, all of whom reaffirmed their commitment to the successful delivery of the project.

SPL Utorogu Limited reiterated its commitment to executing the project efficiently and responsibly, with a focus on stakeholder engagement, local content development, and long-term value creation.