The Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, has commended the 200 million standard cubic feet per day (MMSCFD) gas processing plant project by Southfield Petroleum Ltd. (SPL) in Utorogu, Delta State.
Ekpo said this on Tuesday at the groundbreaking ceremony of the project held at the Utorogu gas processing plant site.
It was reported that SPL is collaborating with the Nigerian Content Development and Monitoring Board (NCDMB) to address Nigeria’s persistent gas supply shortfall for power generation and industrial growth.
He said the development of the 200 MMSCFD gas processing facility would stimulate capital inflow, create direct and indirect employment opportunities, and catalyse industrial growth across multiple sectors.
“By increasing the availability of processed gas for the domestic market, this project will support power generation and boost manufacturing productivity.
“In addition, the production of natural gas liquids, particularly liquefied petroleum gas (LPG), will deepen domestic gas utilisation, reduce import dependence, and stabilise supply within the local market.
“This will contribute to price moderation and expand access to clean energy for millions of Nigerians,” he said.
He added that, from an environmental perspective, the plant would contribute to Nigeria’s gas flare reduction commitments and broader climate objectives.
“The utilisation of gas as a transition fuel supports lower carbon emissions compared to traditional fuels such as diesel and biomass, thereby advancing cleaner energy use across households and industries.
“The increased availability of LPG will help accelerate the shift away from firewood and other harmful cooking fuels, reducing deforestation, indoor air pollution, and associated health risks, particularly for women and children,” he said.
The minister said the project holds significant promise for the host community.
“Beyond job creation during construction and operations, it is expected to stimulate local enterprise development, improve infrastructure, and create sustainable socio-economic opportunities.
“I urge the project promoters to maintain strong community engagement, ensure inclusive participation, and deliver on corporate social responsibility commitments,” he said.
Ekpo described the Utorogu Gas Processing Plant as a critical piece of infrastructure in Nigeria’s journey towards a gas-powered economy.
“By processing wet gas into lean gas for reinjection into the Escravos-Lagos Pipeline System, this facility will significantly enhance domestic gas supply, supporting power generation and industrial activities across the country.
“As a government, we remain committed to providing an enabling environment through transparent regulation, investment-friendly policies, and sustained support for gas infrastructure development,” he said.
He added that the project’s phased completion, beginning with Phase 1 by November 2026, is achievable and urged the company to maintain momentum.
The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, urged community leaders to protect the facility.
He said the project would generate employment opportunities and create business prospects in logistics, fabrication, operations, maintenance, and other support services.
“For host communities and neighbouring areas, this project will stimulate infrastructure development, create jobs and skills transfer, and increase commercial activities,” he said.
Speaking at the ceremony, the Managing Director of SPL Utorogu Ltd., Mr Pius Aigbomeikhe Bawa, underscored the project’s strategic importance in supporting national priorities, including the Federal Government’s “Decade of Gas” initiative.
“This project represents a major step forward in gas commercialisation, reduction of gas flaring, and the advancement of Nigeria’s energy transition goals,” Bawa said.
He added that the plant would enhance domestic gas availability for power generation and industrial growth.
Also speaking, Mr Felix Ogbe, Executive Secretary of NCDMB, said the investment would significantly contribute to the economic growth and development of the Niger Delta and Nigeria.
He said the 200 MMSCFD facility would process wet gas from the OML 34 field, remove impurities, and produce products such as liquefied petroleum gas, propane, and condensate.
According to him, the plant is expected to produce about 123,000 metric tonnes of LPG annually, improving domestic supply and reducing reliance on imports.
He added that it would also deliver about 22,000 metric tonnes of propane and 72,000 metric tonnes of condensate yearly, enhancing value extraction from Nigeria’s gas resources.
