The Federal Government has commended the 200 million standard cubic feet per day (MMSCFD) gas processing plant by Southfield Petroleum Ltd. (SPL), describing it as a critical intervention to bridge Nigeria’s persistent gas supply shortfall and boost power generation.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the commendation on Tuesday during the groundbreaking ceremony of the facility at Utorogu in Delta State.
The project, being developed in partnership with the Nigerian Content Development and Monitoring Board, is expected to significantly enhance domestic gas supply for industrial growth and electricity generation.
Ekpo said the plant would attract substantial investment, create jobs, and stimulate economic activities across multiple sectors. He noted that increased availability of processed gas would boost manufacturing productivity and improve power supply nationwide.
According to him, the production of Natural Gas Liquids, particularly Liquefied Petroleum Gas (LPG), would deepen domestic utilisation, reduce reliance on imports, and stabilise prices in the local market.
“This project will expand access to clean energy for millions of Nigerians while supporting price moderation and energy security,” he said.
He further highlighted the environmental benefits, stating that the plant would contribute to Nigeria’s gas flare reduction targets and broader climate goals by promoting cleaner fuel alternatives to diesel and biomass.
Ekpo added that increased LPG availability would accelerate the transition from firewood and other harmful cooking fuels, reducing deforestation and indoor air pollution, especially among vulnerable populations.
Describing the project as a cornerstone of Nigeria’s gas-powered economy, the minister said the facility would process wet gas into lean gas for reinjection into the Escravos-Lagos Pipeline System, thereby strengthening domestic supply.
He reaffirmed government commitment to enabling policies, transparent regulation, and sustained support for gas infrastructure development, expressing confidence that Phase 1 of the project would be delivered by November 2026.
Also speaking, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, urged host communities to safeguard the facility, noting its significant economic benefits, including job creation and increased commercial activities.
In his remarks, Managing Director of SPL Utorogu Ltd., Pius Aigbomeikhe Bawa, said the project aligns with the Federal Government’s “Decade of Gas” initiative and would advance gas commercialisation and energy transition goals.
Similarly, Executive Secretary of NCDMB, Felix Ogbe, described the project as a milestone in deepening local content and expanding domestic gas utilisation.
Ogbe disclosed that the plant, sourced from the OML 34 field, would produce about 123,000 metric tonnes of LPG annually, alongside 22,000 metric tonnes of propane and 72,000 metric tonnes of condensate.
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He said the output would significantly reduce Nigeria’s dependence on LPG imports while strengthening the country’s midstream oil and gas value chain.
The SPL Utorogu Gas Processing Plant is expected to drive industrialisation, improve energy access, and deliver lasting socio-economic benefits to host communities and the wider Nigerian economy.
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