Nigeria on Tuesday moved a step closer to its dream of full utilisation of its abundant gas potentials with the commissioning of the Integrated Gas Handling Facility and LPG Processing and Dispensing Plants built and operated by the Nigerian Petroleum Development Company, an upstream subsidiary of NNPC, in Oredo, Edo State.
The Oredo Integrated Gas Handling Facility and its associated NGLs depot, which was commissioned by President Muhammadu Buhari on Tuesday, will be delivering 240,000 metric tons of commercial-grade Liquefied Petroleum Gas and Propane.
It will also deliver about 205 million standard cubic feet per day of lean gas to the domestic market.
Speaking at the event, Buhari said in “addition to its import substitution benefits that bring us a step closer to self-sufficiency in LPG production, it will also support the growth of small and medium enterprises in the host communities”.
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“This project will create hundreds of direct and indirect employment opportunities for our teeming youths (both skilled and unskilled),” the president said.
“Apart from being the largest onshore LPG plant in Nigeria with the potential of supplying about 20 percent of Nigeria’s LPG demand, the Oredo Integrated Gas Handling Facility was carefully situated at a corridor proximate to over 80 percent of Nigeria’s LPG demand source,” he said.
The president remarked that the project was a follow-up to the commitment of the administration towards making 2020 Nigeria’s Year of the Gas.
“At the turn of the year 2020, this administration made solemn declarations to the Nigerian public over its plans to expand the gas sector footprints by scaling up the development and utilisation of Nigeria’s abundant natural gas resources to help spur industrialisation, provide clean and efficient energy for transportation and household use while increasing our exports into the international market. It is on the backdrop of this commitment that the year 2020 was dedicated and embodied as Nigeria’s Year of Gas,” Buhari said.
“Since then, we have followed through with actions that have translated those plans into tangible projects with monumental value additions to the Nigerian economy. We accomplished key gas infrastructure projects like the OB3 and ELPS 2 and flagged off the Construction Phase of the 614 km AKK Pipeline Project.
“It was indeed not a coincidence that the completion and commissioning of the aforementioned gas infrastructure projects in this year 2020 followed the wrap-up of year 2019 with the Final Investment Decision (FID) for NLNG Train 7…We are exiting year 2020 with yet another milestone of commissioning the Oredo Integrated Gas Handling Facility, LPG Processing and Dispensing Plants which will also support the on-going drive towards providing alternative auto fuel under the National Gas Expansion Programme initiative,” he said.
Minister of State for Petroleum Resources, Timipre Sylva, noted that the project highlights the commitment of NNPC in eliminating gas flares while increasing Nigeria’s value realisation from gas.
He added that the entire LPG and propane production is “targeted at the Nigerian market, further affirming the conscious efforts of NNPC and the Nigerian government in growing its participation in the LPG value chain to boost domestic supply, lower prices and deepen LPG penetration to safeguard our environment”.
The Group Managing Director of NNPC, Mele Kyari, said the president’s clear directives to the Ministry of Petroleum Resources and the NNPC were that “we must deepen domestic gas utilisation and monetisation and provide a platform where Nigerians can benefit from the enormous gas supplies that we have so that job and prosperity can be created and by implication, bring peace to the country”.
“The facility was designed, constructed and delivered with the highest application of Nigerian content and the contractor is a wholly Nigerian company which demonstrated the capacity of Nigerian companies to handle ‘complex’ projects,” Kyari said.
