Honourable Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri on Tuesday performed the groundbreaking of Southfield Petroleum Limited (SPL) Utorogu 200 million standard cubic feet per day (MMscfd) gas processing plant, with a charge to indigenous oil and gas companies to come up with bold business ideas like Southfield and to leverage the opportunities that the NCDMB provides.
Speaking at the ceremony at Iwherekan, Ughelli, in Delta State, he stated that the facility, which is to process wet gas into lean gas for re-injection into the Escravos-Lagos Pipeline System in addition to key outputs as liquefied petroleum gas (LPG), condensate, and autogas, would “change the entire energy landscape of this country,” and that it signalled a positive trend as industrial growth had been down for a long period.
He commended the Nigerian Content Development and Monitoring Board (NCDMB) for its equity investment in the project and service-related support, noting that these were in line with one of its cardinal objectives “to support, strengthen, and grow local capacity for the benefit of our people.”
The Minister charged other indigenous oil and gas companies to come up with bold ideas like Southfield, noting that they could key into funding and capacity building schemes of the Board to have their business plans actualised. He assured that the Administration of President Bola Ahmed Tinubu would do everything possible to support projects that have potential to advance the country’s drive for economic growth and industrialisation.
Senator Lokpobiri commended the host community for the cooperation the people have given to Southfield Petroleum thus far that has facilitated its smooth operations, while calling on the leaders to view the project as belonging to the community, whose indigenes would be the first beneficiaries of its operations.
“The people that will be employed here are your indigenes; the people that will benefit from energy availability and accessibility will be the people from here,” he stated, adding, “Those that will benefit from the value chain, from the chain of economic activities that this project will attract to this environment will be the people from this community.”
For his part, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, represented by a Director in the Ministry of Petroleum Resources, Engr. Raphael Chinda, said the targeted phased completion, beginning with Phase 1 by November 2026, was achievable, while encouraging Southfield Petroleum to sustain the momentum.
He specially commended the Nigerian Content Development and Monitoring Board (NCDMB) for “strategic interventions and partnerships that have been pivotal in unlocking financing for critical infrastructure and accelerating the development of the country’s gas resources.” He said the Board has continued to demonstrate strong leadership and foresight “in driving catalytic investments across the oil and gas value chain.”
In his words, “This project stands as a clear testament to the NCDMB’s commitment to translating policy into tangible, high-impact investments that deliver value for our economy and our people.”
On the economic impact of the project, he said the gas processing facility will “stimulate significant capital inflow, create direct and indirect employment opportunities, and catalyze industrial growth across multiple sectors,” while increasing the availability of processed gas for the domestic market as cooking fuel, supporting power generation, boosting manufacturing productivity, and enhancing the country’s overall energy security.
He pointed out that the Utorogu Gas Processing Plant, which he described as “a critical piece of infrastructure in our journey towards a gas-powered economy,” underscores the importance of collaboration between government and the private sector, assuring that government is “committed to providing an enabling environment through transparent regulation, investment-friendly policies, and sustained support for gas infrastructure development.”
In a keynote address, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director of Corporate Services, Dr. Abdulmalik Halilu, threw light on how the gas processing plant came about.
According to him, “The project was conceived through a business partnership between NCDMB and Southfield Petroleum Limited, in response to the Federal Government’s Decade of Gas Declaration aimed at promoting a gas-powered economic development model.”
He said major drivers in NCDMB’s decision to support the project included the need “to increase per capita liquefied petroleum gas (LPG) consumption in Nigeria,” “to demonstrate our commitment to Nigeria’s [energy] Transition Plan and nationally determined net zero pathway, through production of cleaner energy for domestic and industrial applications,” and “to promote technology transfer and optimal utilization of Nigerian fabrication yards, construction firms, engineering houses, contractors, financial institutions and other support services in the delivery of the project.”
Engr. Ogbe pointed out that beyond the highlighted socio-economic indicators, “the partnership between NCDMB and Southfield Petroleum is also a reflection of NCDMB’s commitment to supporting bankable and pro-development investments through equity capital injections and institutional support.”
He expressed profound gratitude to the Honourable Ministers of Petroleum Resources (Oil), Senator Lokpobiri, and (Gas), Rt. Hon. Ekpo, for “their exceptional support in granting approvals, policy support and guidance throughout the conception, and take-off of this magnificent gas processing facility in the making.”
Earlier in a welcome address, the Chairman of Southfield Petroleum, Dr. Patrick Ndiomu, stated that the Southfield Utorogu Gas Plant is in alignment with the Federal Government’s Decade of Gas initiative, and that it would reinforce the country’s Gas Master Plan framework, thus supporting the positioning of Nigeria as “a leading gas hub in Africa.”
He assured the host communities in Iwherekan and its environs that Southfield Petroleum remains committed to “a partnership built on trust, inclusion, and shared prosperity,” pointing out that their continued support is essential and that they would remain central to the long-term success of the project.
Dr. Patrick expressed sincere appreciation to the Federal Government, particularly the Honourable Ministers for their leadership, policy direction, and unwavering support for the development of the gas sector. He was equally appreciative to partners, industry regulators, and other stakeholders.
The Southfield Utorogu Gas Processing Plant has as key facilities an Amine Sweetening Unit, Gas Dehydration Unit, Compression Systems, and Associated Utilities and Support Infrastructure.
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