A multi-billion-naira gas processing plant expected to provide 200 million standard cubic feet per day is being constructed by the Southfield Petroleum Limited (SPL) and the Nigerian Content Development and Monitoring Board (NCDMB) at Utorogu in Ughelli South Local Government Area of Delta State.
The processing plant, when completed next year, will stimulate significant capital inflow, create direct and indirect employment opportunities and catalyze industrial growth across multiple sectors.
By increasing the availability of processed gas for the domestic market, the project will support power generation, boost manufacturing productivity and enhance Nigeria’s overall energy security.
Minister of State. Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, while performing the SPL and NCDMB groundbreaking of the SPL Utorogu 200 MMSCFD on Tuesdaysaid the project was a clear demonstration of collective commitment to unlocking the full value of Nigeria’s has potential under the decade of gas initiative.
He stated that the production of natural gas liquids, particularly Liquefied Petroleum Gas (LPG) will deepen domestic gas utilization, reduce import dependence and stabilize supply within the local market.
“From an environmental perspective, this project is equally significant. By processing associated gas that would otherwise be flared, the plant will contribute meaningfully to Nigeria’s gas flare reduction commitments and broader climate objectives”, he said.
The minister, represented Mr. Raphael Chimba, Assistant Chief Petroleum Engineer, commended the board and management of Southfield Petroleum Limited for the bold and strategic investment.
“This project is not only timely but also strongly aligns with the federal government’s vision of harnessing Nigeria’s vast gas resources as a catalyst for economic growth, industrialization and energy security”, he added.
Minister of State for Petroleum Resources, Senator Heineken Lokpobiri commended Chairman of SPL, Dr. Patrick Ndiomu’s leadership for the very bold, huge, complex and ambitious project that “we are here to break the ground today.
This will, in no doubt, change the entire landscape in this part of the country. The communities, Delta state and even the country, will benefit. Industrial growth is bound to happen with this project.
It is based on that that the NCDMB decided to invest in this project”, he said.
Senator Lokpobiri assured that the federal government would do everything necessary to ensure the completion of the project and sought for maximum cooperation from all stakeholders including communities so as to have very smooth execution phase.
“We also need more companies with bold ideas like Southfield to solve our energy problems, this is why we encourage other Nigerian energy companies to also leverage on the opportunities that NCDMB has to partner with initiatives with bold and progressive projects that will benefit our own people.
“Let me state, on behalf of President Bola Tinubu, that this government is committed to continuously supporting indigenous capacity.
“Part of the cardinal objectives of the NCDMB is to see how we can grow local capacity for the benefit of our own people. We will continue to support with the available funds in our custody for the benefit of Nigerians”, he added.
The chairman of the Southfield Petroleum Limited (SPL), Dr. Patrick Ndiomu said the groundbreaking ceremony marked a defining milestone, not only for the company, but for Delta State and Nigeria’s gas sector.
“The Southfield Utorogu gas plant project occupies a strategic position within the nation’s domestic gas infrastructure. In alignment with the federal government’s decade of gas initiative, this project directly supports Nigeria’s ambition to transition into a gas-powered economy”, he said.
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Felix Ogbe, who was represented by Director Corporate Services, Dr. Abdulmalik Halilu, stated that the 200mmscfd processing facility was designed to process wet gas from the OML 34 field, remove impurities and produce valuable products including Liquefied Petroleum Gas, propane and condensate while also supplying lean gas into the domestic pipeline network.
“Upon completion, the plant is expected to produce approx 123, 000 metric tonnes of LPG per annum. This will significantly improve domestic cooking gas availability and reduce reliance on LPG importation”, he added.
Delta State Governor, Rt. Hon. Sheriff Oborevwori, who was represented by the Commissioner for Oil and Gas, Hon. Peter Okagbare Uviejitobor, promised to do everything needed to ensure success of the project.
He called on the leadership of the community to take the project as their own adding “If this project is completed in record time, you are the first beneficiaries, those that will be employed here, first, will be your own people.
“Those that will benefit from the energy availability and accessibility will be the people of this neighbourhood. Those that will benefit from the value chain, economic activities that this project will attract will be the people of this community”, he added.
Sylvester Idowu
