FG, firm partner to bridge gas supply gap with Delta plant

The Federal Government has partnered with Southfield Petroleum Limited to launch a 200 million standard cubic feet per day gas processing plant in Delta State, as part of efforts to address Nigeria’s persistent gas supply shortfall and reduce reliance on imports.

The facility, located in Iwherekan, Ughelli South Local Government Area, is expected to boost domestic gas supply for power generation, industrial use, and household consumption, while strengthening the country’s gas value chain.

The project, known as the Southfield Utorogu Gas Processing Plant, is being developed in collaboration with the Nigerian Content Development and Monitoring Board.

Upon completion, the plant will process 200 million standard cubic feet of gas daily, producing Liquefied Petroleum Gas, condensate, and autogas—key products aimed at improving energy access and reducing dependence on imports.

Speaking at the groundbreaking ceremony on Tuesday, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the project addresses a major challenge in the sector—delivering gas to the domestic market.

“One of our major problems is bringing gas to market. This is a capital-intensive project, and the government is supporting investors willing to take that risk for the benefit of Nigerians,” he said.

He added that the initiative aligns with the Federal Government’s drive to enhance energy security and stimulate industrial growth, noting that it would create jobs and generate economic value across the sector.

Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the plant would support Nigeria’s transition to a gas-based economy by reducing gas flaring and converting resources into commercially viable products.

He noted that increased local production of LPG would make cooking gas more accessible and affordable while cutting down on imports.

Representing Delta State Governor Sheriff Oborevwori, the Commissioner for Oil and Gas, Peter Uviejitobor, assured investors of the state government’s support for the timely completion of the project.

The Nigerian Content Development and Monitoring Board said its investment decision was based on the project’s technical feasibility and economic viability.

Its Executive Secretary, Felix Ogbe, who spoke through the Director of Corporate Affairs, Abdulmalik Halilu, said the plant would boost LPG supply, create jobs, and strengthen local capacity in the oil and gas sector.

Chairman of Southfield Petroleum Limited, Patrick Ndiomu, said the project was designed to unlock value across the gas chain, from production to processing and distribution, adding that it had already begun attracting investor interest.

Community leaders, including the Okobaro of Ughievwen Kingdom, Igbi II, pledged support for the project and called for increased investment in the area, citing a peaceful operating environment.

Findings by PidomNigeria Online indicate that the plant is expected to generate about 1,200 jobs, stimulate small businesses, and attract further investment to the host community upon completion.y