Green energy gets nod to establish LPG extraction plant in Niger Delta

The operator of the Otakikpo marginal field in OML 11, Green Energy International Limited has gotten the nod of the Federal Government to establish a Liquefied Natural Gas (LPG) extraction plant at Ikuru town in River 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 fulfill its obligations as a pilot project approved by government for zero gas flares operation in the Niger Delta.

The company, which began production in February this year said it is determined to ensure full utilization 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), who is the Original Equipment Manufacturer (OEM) and will be responsible for manufacturing and design activities associated with this project.

The company’s Director of Legal and Corporate services, Olusegun Ilori explained that the programme involves the use of lean gas to power the 12MW gas generator at Otakikpo field out of which 5MW would be dedicated to the host community while the LPG and propane would be bottled and sold.

Part of the LPG shall be for domestic use within Otakikpo community in order to support small-scale industries.