Green Energy International Limited, the operator of the Otakikpo marginal field in OML 11, has secured the Federal Government’s nod for the establishment of a Liquefied Petroleum Gas (LPG ) extraction plant at Ikuru Town, Rivers State.
The License To Establish (LTE) of the 12MMSCFD capacity plant was issued to the company by the Department of Petroleum Resources (DPR) as the company moves to fulfil its obligations as a pilot project approved by government for zero gas flares operation in the Niger Delta.
The company, which began production last February, said it was determined to ensure full utilisation of the gas produced from the field for LPG and power generation.
It stated that the approval has made it possible for the company to make final investment decision (FID) by awarding the engineering, procurement, construction and installation of the LPG extraction plant to PCC-LAMBDA Consortium, formed between Nigeria indigenous companies and a Chinese company, Peiyang Chemical Equipment Co. Ltd (PCC), which is the original equipment manufacturer (OEM) and will be responsible for manufacturing and design activities associated with the project.
The company’s Director of Legal and Corporate Services, Mr. Olusegun Ilori, explained that the gas utilisation programme involves the use of the lean gas to power the 12MW gas generator at Otakikpo field out of which 5MW would be dedicated to the host communities in line with its MoU with the government while the LPG and propane would be bottled and sold. Part of the LPG shall be for domestic use within Otakikpo communities to support small scale industries.
He said the LPG plant, which is expected to be completed within 12 months would be a booster for Nigeria’s drive toward utilisation of gas resources for domestic gas. The company recently delivered 6MW gas generator to the community while the other batches will arrive in the new year.