It was also gathered that the $12m LPG plant being established in Ikuru Town in Rivers State by Green Energy International Limited, operator of Otakikpo Marginal field in OML 11, would be ready for installation by the second quarter of 2019
In his address in Abuja, the Minister of State for Petroleum Resources, Ibe Kachikwu, said that the Nigerian Gas Policy had helped in growing country’s output in gas production.
Kachikwu said, “The Nigerian Gas Policy is a very comprehensive document that sets out the parameters for growth for gas, how we meet our local needs, what sort of infrastructure is required and the various segments of business opportunities that exist.
“It was passed by the Federal Executive Council and it has been driving the gas sector. We are hoping that relying on that policy we will be able to drive investments into the fertiliser, petrochemicals, methanol and LPG areas.
“LPG is one area where we have done some very good work. We’ve seen a 600 per cent increase in LPG growth over the last two years. Consumption is about 420,000 metric tonnes, which is about 600 per cent increase and that’s a very major movement.”
On the 12 million standard cubic feet per day LPG plant, the Chairman, Green Energy, Prof. Anthony Adegbulugbe, said the approval to construct the facility was issued by the Department of Petroleum Resources in August this year, a sequel to the successful submission of the engineering design.
Adegbulugbe, according to a statement issued in Abuja, said that the plant was being constructed in China at a cost of about $12m, adding that the project would ensure zero gas flare in the Niger Delta, under its small-scale gas utilisation programme.
He noted that host communities in the area would get uninterrupted power supply through the company’s gas-to-power project, as six megawatts gas-fired power generators were already on site for installation.
Adegbulugbe said that the company had secured a 15MW power generation licence from the National Electricity Regulatory Commission and efforts were being made to increase it to 40MW.
Outlining other plans of the company in its phase two development programme, Adegbulugbe said Green Energy had completed a 3D seismic campaign to understand the field with a view to drilling more wells in the area, while an onshore export terminal was being proposed for establishment in 2020.
He said that the company started production in 2017 and currently produced 6,000 barrels of crude oil per day, adding that it planned to ramp up production to 20,000bpd in the next few years.
He further noted that Green Energy and its technical partner, Lekoil, had patronised local community contractors since its inception with over N3bn worth of procurement contracts which had contributed to the economic development of the people.