First Otakikpo Midstream Ltd FOML Adds 30,000 MT Per Annum LPG To The Nigerian Market

First Otakikpo Midstream Ltd FOML Adds 30,000 MT Per Annum LPG To The Nigerian Market

On March 18, 2025, Nigeria marked a significant milestone in its energy sector with the commissioning of the Otakikpo Liquefied Petroleum Gas (LPG) Extraction Plant and a 20-megawatt (MW) gas-to-power project in Andoni Local Government Area, Rivers State. Developed by the Otakikpo Joint Venture between Green Energy International Limited and Lekoil, these projects signify a pivotal step toward harnessing Nigeria's vast gas reserves for domestic energy production and economic growth.

 

Project Overview

The Otakikpo LPG Extraction Plant is designed to process up to 12 million standard cubic feet per day (MMscf/d) of gas, translating to an annual increase of approximately 30,000 metric tonnes (MT) in Nigeria's LPG production capacity. This augmentation is expected to reduce the nation's reliance on imported LPG, thereby conserving foreign exchange reserves. The plant's operations will provide a cleaner and more efficient energy source for both domestic and industrial consumers, aligning with global trends toward sustainable energy solutions.

 

Complementing the LPG facility, the 20MW gas-to-power project aims to utilize the extracted gas to generate electricity. This initiative not only supports the industrial activities within the Otakikpo field but also has provisions to supply excess power to local communities and industries. The availability of reliable electricity is anticipated to stimulate economic activities, create employment opportunities, and improve the standard of living in the surrounding areas.

 

Government Endorsement and Strategic Significance

The commissioning ceremony was officiated by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who underscored the project's alignment with President Bola Tinubu's Renewed Hope Agenda. This agenda emphasizes transforming Nigeria into a gas-powered economy, leveraging the country's estimated 209 trillion cubic feet of gas reserves—the largest in Africa. The minister highlighted that such projects are instrumental in eradicating gas flaring, reducing carbon emissions, and promoting environmental sustainability.

 

Community and Economic Impact

The operationalization of these facilities is poised to deliver substantial environmental and socio-economic benefits. By monetizing associated gas that would otherwise be flared, the projects contribute to a reduction in greenhouse gas emissions. Moreover, the availability of locally produced LPG is expected to make cooking gas more affordable and accessible, encouraging a shift from traditional biomass fuels and thereby improving public health outcomes.

 

The electricity generated from the gas-to-power plant is set to enhance energy security in the region. The joint venture has established a framework with the Host Community Development Trust Fund to distribute power to local communities, thereby fostering industrialization and economic inclusion. This development is anticipated to attract investments, stimulate small and medium-sized enterprises, and create job opportunities, contributing to the overall economic upliftment of the area.

 

Conclusion

The inauguration of the Otakikpo LPG Extraction Plant and the 20MW gas-to-power project represents a transformative advancement in Nigeria's pursuit of energy diversification and sustainability. By effectively harnessing natural gas resources, these projects exemplify a strategic move toward energy self-sufficiency, economic development, and environmental stewardship. As Nigeria continues to implement such initiatives, the nation moves closer to realizing its vision of a robust, gas-powered economy that benefits all citizens.

 

• Lpg
• nigerian market
• otakikpo
• Midstream
• Lng
• oil and market