Behold, Nigeria’s first LPG extraction plant, gas-to-power project…

(Good story emergency rule in Rivers State almost deleted)
A significant development in the oil-and-gas/energy sector that would have enhanced the image of the present administration was diminished early this week by their emergency rule’s breaking story on the day the remarkable project was launched in Andoni Local Government Area of Rivers State by the Minister of State Petroleum Resources (Gas). The Governor of the state who was suspended that day was supposed to be there to celebrate with the joint-venture partners and investors in his state. The Minister representing Rivers State in the Executive Council of the Federation wasn’t there too as he had been reported as accessory after the fact of the political crisis in the oil-rich state.

That was how the crisis in Rivers State took the steam out of what would have been celebrated as a good news item from Rivers State the day everything went wrong again. What is the big story that crisis restricted to a corner piece in the media? That day, Tuesday March 18, 2025, the first Otakikpo LPG Extraction Plant and 20Mw Gas-to-Power Project were commissioned by the Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, on behalf of the President. The special pioneer energy project is the brainchild of the First Otakikpo Midstream Limited, chaired by a distinguished scholar, Anthony Adegbulugbe, a professor of energy management system, a first-class product of the Obafemi Awolowo University, Ile-Ife and Massachusetts Institute of Management (MIT), Boston, United States.

LPG extraction plant already completed and producing utilises the associated gas from the field to produce LPG products namely, Prospane Butane gas. Besides, it produces Condensate, a low-density mixture of hydro-carbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields.

Ekpo who commissioned the 12 Million Standard Cubic Feet (mmscf) LPG Extraction Plant and the 20 Mega Watts Gas to power plant built by the Otakikpo joint venture (comprising Green Energy International Limited, the Operator and Lekoil, the Technical Partner of Otakikpo field PML 11, Rivers State said the government of President Bola Tinubu was elated by the development. His words: “When the Chairman, Professor Anthony Adegbulugbe informed me about the completion of this project and the proposed commissioning, I was elated and readily accepted to perform this role as it aligns with the renewed hope agenda of His Excellency, President Bola Ahmed Tinubu in transforming the Nigerian economy to a gas powered economy for the good of all”.

He said the mandate of the President is to drive the development of the gas sector in the country. With a proven estimated natural gas reserves of 209.26 trillion cubic feet (TCF), Nigeria ranks as the 8th largest in the world and the largest in Africa, with 33% of Africa’s reserves.
Hon. Ekpo recalled that it was in the light of the huge gas resource potential that the Federal Government in the year 2021, launched the decade of Gas initiative that would make Nigeria a gas-driven economy.

The minister added that the creation of the Ministry of Petroleum Resources (Gas) by the present administration reflects the foresight and wisdom of the President in ensuring a dedicated and strategic focus on the development of our nation’s vast gas resources. “This bold step is pivotal to actualising Nigeria’s vision of adopting gas as the transition fuel of choice, especially as the global discourse on energy sustainability gathers momentum”

Accordingly, the Joint Venture has made significant strides in complying with the provisions of the Petroleum Industry Act (PIA) 2021, particularly through the establishment of a distinct midstream entity—First Otakikpo Midstream Ltd (FOML)—to manage its gas business. “The licensing of FOML by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) marks a commendable milestone. This strategic move positions the company to fully leverage the array of business and tax incentives introduced by the present administration to promote the development and utilisation of both associated and non-associated gas across the value chain”, Ekpo noted.

The under-reported Joint Venture companies are actively building on their achievements and are poised to scale up investments in gas utilisation, with plans to expand into additional LPG and LNG projects in the near future to harness more of the associated gas from the field. The minister also said, “Let me assure you that the present administration remains fully committed to supporting your aspirations, as you continue to expand your investment footprint within Nigeria’s gas sector”.

Another remarkable milestone in this story is the development of the 20 MW gas-to-power generation plant being deployed to support a rapidly expanding field operations. Notably, the excess power generated will be made available to local industries through the establishment of an industrial park, targeting agro-allied ventures, small and medium-scale enterprises, and the surrounding communities. An elated Andoni Local Government Caretaker Head who spoke among others noted, “even God said, “let there be light” and so was delighted that the Gas-to-power project would bring electricity to the host communities, after all.

To actualise this social responsibility project to the host communities, the Minister said he already confirmed that Frist Otakikpo Midstream Limited, Midstream Entity of Otakikpo Joint Ventures have formed a joint team with the Board of Trustees of the Host Communities Development Trust Fund (HCDT) to develop a framework for extending power to nearby communities. Doubtless, the initiative will stimulate economic activity in the region and significantly improve the standard of living for the host communities. This is a good development news that was lost to the vagaries of crisis of coherence in Rivers State this week.

In the main, as it would have been reported, the commissioning of the facility has delivered significant environmental and socio-economic value to the country in several impactful ways, including but not limited to the following:
•Flare Eradication and reduction of its carbon
footprint.
• Improved Community Well-being.
• Job Creation and Economic Inclusion.
• Promotion of Local Content.
•Energy Security and Environmental
Sustainability.
• Economic Multiplier Effect.

The minister who hails from the organic Niger Delta region commended the youth of the host communities “for their growing support and cooperation in fostering a peaceful and enabling environment for oil and gas operations. Your active participation and commitment to safeguarding vital infrastructure are crucial to sustaining development and attracting further investment in the Niger Delta”.

Mrs Comfort Ajayi who represented the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), at the commissioning of the 12 million Standard Cubic Feet (MMSCF) LPG Extraction Plant and 20-Megawatt (MW) Gas to Power projects also noted that the ceremony marked a significant stride in Nigeria’s pursuit of energy sufficiency and reduced carbon footprint. The NMDPRA CEO’s representative said, “the successful completion of these two projects is a shining example of collaboration and innovative problem-solving. These projects would not have been possible without the collaboration of all stakeholders, including the Federal Government, the Rivers State Government, private investors, and the host communities. We can always achieve so much when we work together toward a common goal. Also, these projects underscore NMDPRA’s dual role as Midstream sector regulator and business enabler in oil and gas industry”.

The regulating body’s chief executive also observed that the commissioning of the 12MMSCF LPG Extraction Plant in Nigeria “is a critical step toward promoting domestic gas utilisation, reducing our reliance on imported LPG which is used as cooking gas in homes and industries nationwide, thus establishing our dear country Nigeria as a major player in the global gas market”.

As the regulatory authority for the midstream sector, NMDPRA told the nation at the site that it is dedicated to fostering a conducive environment for gas infrastructure investments and enforcing adherence to international industry standards. Their mandate is to optimise Nigeria’s hydrocarbon resources, balancing economic value with environmental stewardship and social responsibility.

Professor Adegbulugbe, Chairman of First Otakikpo Midstream Limited said the commissioning of the twin projects of the 12mmscf LPG Extraction plant, and the 20 MW power project is a fulfillment of Otakikpo joint venture, comprising Green Energy International Ltd, the Operator of the field, and Lekoil Oil and Gas Investment Ltd, our Technical Partner. In his words: “It is the realisation of our commitment to the Federal Government to implement a pilot project of the World Bank Gas Flares Reduction Programme (GFRP), based on Small Scale Gas Utilization Programme (SSGUP). Our idea was to provide a unique model that ensures oil exploration from the field that not only eliminates gas flares but ensures that the associated gas is monetised through utilisation for domestic gas, power generation, and other products in the value chain for the economic advancement of the host communities and the nation generally. Based on this proposition, the field was awarded to Green Energy International Ltd (GEIL) in 2014 by the Federal Government to implement Small Scale Gas Utilization Projects (“SSGUP”) which includes the completion of a 12mmscf LPG Extraction Plant Project and a 15MW Power Project. This vision of ours has in less than 10 years translated into a robust government policy through the Petroleum Industry Act (PIA) and regulations, which has now made it a policy to eliminate gas flares through an aggressive gas utilisation programme. It is therefore not a mere coincidence that we are today the First Modular LPG extraction plant in any marginal field in Nigeria”.

Adegbulugbe continued: “At completion, the two projects cost the JV over $60million …Before you today is a living testimony of vision in action, a dream turned into reality. This plant within a short period of its test production is producing with about 60% of its installed capacity and we are gradually ramping up, while plans are ahead by the JV to expand our gas footprint into more LPG and LNG to absorb the increased gas production with more wells coming on stream”.

The professor revealed that, the installation and operations of this plant were implemented 100% by Nigerian young men and women who cut across a wide spectrum of professional backgrounds with significant numbers from the Niger Delta and the host communities. In his words, “the workforce is managed by a set of world-class professionals at the board and management levels…

The former Director of Obafemi Awolowo University’s Centre for Energy Research and Development appreciated the cooperation of their Technical Partner Lekoil, led by their CEO, Mr. Olalekan Akinyanmi. He said, “upon entering into a partnership with us, the company aligned with our vision and we have jointly achieved this successful outcome”.

The former Special Adviser on Energy Affairs to President Olusegun Obasanjo also appreciated the host communities “for the cooperation we have enjoyed so far and even though we have had some challenging moments , we have overcome such incidents with more open engagements. The advent of the PIA has made us partners as they are now entitled to 3% of our prior year operating expenses. As we continue to increase our footprint in development projects, exponential growth in their prosperity is also assured”. He said for sustainable peace to achieve shared prosperity, the communities must continue to provide the conducive peaceful environment for the operations in the area. “This is the least we plead for while we remain committed to meeting our part of the legal obligations”