FG unveils gas power plants in Rivers, expresses commitment to clean energy
Ekperikpe Ekpo
FG unveils gas power plants in Rivers, expresses commitment to clean energy
The Federal Government has reiterated its commitment to transforming the economy of the country through renewable gas energy.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated this at the commissioning of the Otakikpo LPG Extraction Plant and 20MW Gas-to-Power Project, built by Green Energy International Limited/Lekoil Joint Ventures in Andoni Local Council of Rivers State.
He said the Ministry of Petroleum Resources (Gas) has the mandate of President Bola Tinubu to drive the gas sector in the country, with an estimated 209 billion cubic gas reserves, stressing that the building of the Otakikpo gas extraction and power plants aligns with President Tinubu’s Renewed Hope Agenda in transforming the Nigerian economy into a gas-powered economy for the good of all.
He said 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 the establishment of the First Otakikpo Midstream Limited (FOML) to manage the gas business, adding that the licensing of the FOML by the Nigerian Midstream and Downstream Petroleum Development Authority marks a commendable milestone.
He commended the JV partners for scaling up to benefit from the huge LPG and LNG gas reserves in the country.
The minister said that the commissioning of the facility has delivered significant environmental and socio-economic value for the nation in several impactful ways, including flare eradication and reduction of carbon footprints, improved community well-being, job creation and economic inclusion, promotion of local content, energy security and environmental sustainability, and economic multiplier effects.
Ekperikpe assured the company of the Federal Government’s continued commitment and support towards enhancing investments in the gas blueprint of the country.
He stated: “I’m pleased to be here today to perform the commissioning of the 12-million-cubic-feet LPG extraction plant and the 20-megawatt gas power plant built by Otakikpo Joint Venture, comprising Green Energy International Limited, the operator, and Lekoil, the technical partner of the Otakikpo field in Rivers State.
“This commissioning aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu in transforming the Nigerian economy into a gas-powered economy for the good of all.
“Let me assure you that the present administration remains fully committed to supporting your aspirations as you continue to expand your investment blueprint within the Nigerian gas sector.”
In his address, the Chairman of Green Energy International Limited, operators of the Otakikpo Joint Venture, Professor Anthony Adegbulugbe, said the commissioning of the twin projects is a fulfilment of the Otakikpo Joint Venture’s commitment to the Federal Government to implement a pilot project of the World Bank Gas Flares Reduction Programme (GFRP), based on the Small-Scale Gas Utilization Programme (SSGUP).
He explained that the idea of the JV is to provide a unique model that ensures oil exploration from the field not only eliminates gas flares but also ensures that the associated gas is monetized through utilization for domestic gas, power generation, and other products in the value chain for the economic advancement of the host communities and the nation generally.
Adegbulugbe added that the plant is currently producing at about 60% of its installed capacity, as the company is gradually ramping up, while plans are ahead by the JV to expand the gas footprint into more LPG and LNG to absorb the increased gas production with more wells coming on stream.
Significantly, he said, instead of the 15MW initially planned at its inception for gas-to-power, the company was commissioning a 20MW embedded power generation for the use of their rapidly expanding operations, with excess power available for industrial use and their host communities.
He added that the joint venture has set up a task force between the JV and the Board of Trustees (BOT) of the two Host Communities Development Trust Funds (HCDTs) to work out modalities for power distribution to the host communities.
Meanwhile, communities in the area have expressed joy over the possibility of being powered by the excess electricity from the newly inaugurated facility.
Chief Gad Harry, who spoke on behalf of some host communities, including Ugama-Ekede, Ayama-Ekede, Asuk-Ama, and Asuk-Oyet, said they have yearned to get connected to electricity by the company, as reflected in 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 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 and employment opportunities for our children,” he stated.
