Utorogu: The Minister of State Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, has commended Southfield Petroleum Ltd. (SPL) for its groundbreaking 200 million standard cubic feet per day (MMSCFD) Gas Processing Plant in Utorogu, Delta State. Ekpo expressed his approval during the site’s groundbreaking ceremony, celebrating the collaborative efforts of SPL and the Nigerian Content Development and Monitoring Board (NCDMB) to address Nigeria’s persistent gas supply shortfall.
According to News Agency of Nigeria, the SPL project is positioned to significantly boost Nigeria’s gas supply for power generation and industrial growth. The development of the 200 MMSCFD facility is anticipated to attract substantial capital inflow, generate employment opportunities, and drive industrial expansion across various sectors.
By increasing the domestic availability of processed gas, the project aims to support power generation and enhance manufacturing productivity. Furthermore, the production of Natural Gas Liquids, particularly Liquefied Petroleum Gas (LPG), is expected to deepen domestic gas utilization, reduce import dependence, and stabilize local market supply, thereby moderating prices and expanding access to clean energy.
From an environmental perspective, the plant will contribute to Nigeria’s gas flare reduction commitments and broader climate objectives. The use of gas as a transition fuel is expected to result in lower carbon emissions compared to traditional fuels, advancing cleaner energy use across households and industries. The increased availability of LPG is also set to accelerate the shift from harmful cooking fuels, reducing deforestation, indoor air pollution, and associated health risks.
The project promises significant benefits for the host community, including job creation, local enterprise development, and improved infrastructure. The minister emphasized the importance of strong community engagement, inclusive participation, and corporate social responsibility to ensure lasting positive impacts.
Ekpo highlighted the Utorogu Gas Processing Plant as a critical infrastructure piece in Nigeria’s journey toward a gas-powered economy. By processing wet gas into lean gas for reinjection into the Escravos-Lagos Pipeline System, the facility will enhance domestic gas supply, supporting power generation and industrial activities nationwide.
The government remains committed to providing an enabling environment through transparent regulation, investment-friendly policies, and sustained support for gas infrastructure development. The targeted phased completion, beginning with Phase 1 by November 2026, is both commendable and achievable.
The Minister of State for Petroleum Resources (Oil), Mr. Heineken Lokpobiri, urged community leaders to protect the facility, emphasizing the substantial economic impact of the project, including job creation and business opportunities in logistics, fabrication, operations, maintenance, and support services.
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. The project is expected to strengthen domestic gas supply and create sustainable economic opportunities for host communities and the nation.
Mr. Felix Ogbe, the Executive Secretary of NCDMB, highlighted the project’s significant contributions to the economic growth of the Niger-Delta and Nigeria. The gas processing facility will process wet gas from the OML 34 field, remove impurities, and produce valuable products, including LPG, propane, and condensate, while supplying lean gas into the domestic pipeline network.
Upon completion, the plant is expected to produce approximately 123,000 metric tonnes of LPG per annum, improving domestic cooking gas availability and reducing reliance on LPG importation. Additionally, the project will deliver about 22,000 metric tonnes of propane and 72,000 metric tonnes of condensate annually, thereby enhancing value extraction from Nigeria’s gas resources and strengthening the midstream value chain.