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From Ben Dunno, Warri
As part of measures to provide alternative sources of power generation to boost economic growth, industrialisation and electricity supply, the Federal Government on Tuesday performed the groundbreaking of a 200 million standard cubic feet per day (MMSCFD) gas processing plant at Utorogu in Ughelli South Local Government Area of Delta State.
Speaking at the ceremony, the Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, described the project as strategic to the developmental blueprint of the current administration, particularly in achieving sustainable growth in the ailing power sector of the economy.
According to him, “The economic impact of this project cannot be overstated. The development of this 200 MMSCFD gas processing facility will stimulate significant 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, boost manufacturing productivity, and enhance Nigeria’s overall energy security.”
The minister, who was represented by Mr Racheal Chinoah, an Assistant Chief Petroleum Engineer at the Federal Ministry of Petroleum Resources, said, “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 directly contributes to price moderation and expands access to clean energy for millions of Nigerians.”
“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.”
“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.”
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“Furthermore, 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.”
Said he: “To the host community, this project holds immense promise. Beyond job creation during both 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 that will leave lasting positive impacts in the area.”
“Distinguished ladies and gentlemen, the Utorogu Gas Processing Plant represents a critical piece of infrastructure in our 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,” he stated.
“This project also underscores the importance of collaboration between the government and the private sector. As a government, we remain committed to providing an enabling environment through transparent regulation, investment-friendly policies, and sustained support for gas infrastructure development.”
“We will continue to work closely with all stakeholders—including investors, regulators, and host communities—to ensure the successful and timely delivery of this project. The targeted phased completion, beginning with Phase 1 by November 2026, is both commendable and achievable, and we encourage Southfield Petroleum Limited to maintain this momentum.”
“I once again commend Southfield Petroleum Limited for this initiative, appreciate the continued leadership of the NCDMB, and reaffirm the Federal Government’s unwavering support for projects that advance our gas development agenda.”
“It is now my pleasure to formally mark the groundbreaking of this important project,” he concluded.
Earlier in his speech, the Minister of Petroleum, Heineken Lokpobiri, admonished community indigenes, especially leaders and youths, to see the project as their collective asset and protect it, noting that they stand to gain significantly when it is finally commissioned.
