New Utorogu Gas Plant in Delta Expected to Provide 200m Standard Cubic Feet Per Day

• As NLNG disburses N250m in 2026 VIBES business grants 

•Ekpo lauds Southfield, NCDMB partnership over strategic gas investment

Sylvester Idowu in Warri, Blessing Ibunge in Port Harcourt and Peter Uzoho

A multi-billion-naira gas processing plant expected to provide 200 million standard cubic feet per day is being constructed by the Southfield Petroleum Limited (SPL) and the Nigerian Content Development and Monitoring Board (NCDMB) at Utorogu in Ughelli South Local Government Area of Delta State.

Meanwhile, in another related energy sector development, the Nigeria Liquefied Natural Gas (NLNG) has disbursed N250 million in grants to 51 entrepreneurs at the conclusion of its 2026 Vocational Innovation and Business Empowerment Scheme (VIBES).

In a statement by the NLNG’s Manager, Corporate Communication and Public Affairs, Anne-Marie Palmer-Ikuku said the programme commenced with the induction of 103 participants from its host communities in Rivers State.

In his reaction, the Minister of State Petroleum Resources (Gas), Rt Hon Ekperikpe Ekpo, commended Southfield Petroleum Limited and the NCDMB for advancing Nigeria’s gas development agenda through strategic infrastructure investments.

The multi-billion-naira Utorogu gas processing plant when completed next year will stimulate significant capital inflow, create direct and indirect employment opportunities and catalyze industrial growth across multiple sectors.

By increasing the availability of processed gas for the domestic market, the project will support power generation, boost manufacturing productivity and enhance Nigeria’s overall energy security.

Minister of State, Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, while performing the SPL and NCDMB groundbreaking of the SPL Utorogu 200 MMSCFD yesterday said the project was a clear demonstration of collective commitment to unlocking the full value of Nigeria’s has potential under the decade of gas initiative.

He stated the production of natural gas liquids, particularly Liquefied Petroleum Gas (LPG) will deepen domestic gas utilization, reduce import dependence and stabilize supply within the local market.

“From an environmental perspective, this project is equally significant. By processing associated gas that would otherwise be flared, the plant will contribute meaningfully to Nigeria’s gas flare reduction commitments and broader climate objectives”, he said.

The minister, represented Mr. Raphael Chimba, Assistant Chief Petroleum Engineer, commended the board and management of Southfield Petroleum Limited for the bold and strategic investment.

“This project is not only timely but also strongly aligns with the federal government’s vision of harnessing Nigeria’s vas gas resources as a catalyst for economic growth, industrialization and energy security”, he added.

Minister of State for Petroleum Resources, Senator Heineken Lokpobiri commended Chairman of SPL, Dr. Patrick Ndiomu’s leadership for the very bold, huge, complex and ambitious project that “we are here to break the ground today.

This will, in no doubt, change the entire landscape in this part of the country. The communities, Delta State and even the country, will benefit. Industrial growth is bound to happen with this project.

It is based on that that the NCDMB decided to invest in this project”, he said.

Senator Lokpobiri assured the federal government would do everything necessary to ensure completion of the project and sought maximum cooperation from all stakeholders including communities so as to have very smooth execution phase.

“We also need more companies with bold ideas like Southfield to solve our energy problems; this is why we encourage other Nigerian energy companies to also leverage the opportunities that NCDMB has to partner with initiatives with bold and progressive projects that will benefit our own people.

“Let me state, on behalf of President Bola Tinubu, that this government is committed to continuously supporting indigenous capacity. Part of the cardinal objectives of the NCDMB is to see how we can grow local capacity for the benefit of our own people. We will continue to support with the available funds in our custody for the benefit of Nigerians”, he added.

The chairman of the Southfield Petroleum Limited (SPL), Dr. Patrick Ndiomu said the groundbreaking ceremony marked a defining milestone, not only for the company, but for Delta State and Nigeria’s gas sector.

“The Southfield Utorogu gas plant project occupies a strategic position within the nation’s domestic gas infrastructure. In alignment with the federal government’s decade of gas initiative, this project directly supports Nigeria’s ambition to transition into a gas-powered economy”, he said.

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Felix Ogbe, represented by Director Corporate Services, Dr. Abdulmalik Halilu, stated the 200mmscfd processing facility was designed to process wet gas from the OML 34 field, remove impurities and produce valuable products including Liquefied Petroleum Gas, propane and condensate while also supplying lean gas into the domestic pipeline network.

“Upon completion, the plant is expected to produce approx 123, 000 metric tonnes of LPG per annum. This will significantly improve domestic cooking gas availability and reduce reliance on LPG importation”, he added.

Delta State governor, Rt. Hon. Sheriff Oborevwori, who was represented by the Commissioner for Oil and Gas, Hon. Peter Okagbare Uviejitobor, promised to do everything needed to ensure success of the project.

 He called on the leadership of the community to take the project as their own adding “If this project is completed in record time, you are the first beneficiaries, those that will be employed here, first, will be your own people.

“Those that will benefit from the energy availability and accessibility will be the people of this neighbourhood. Those that will benefit from the value chain, economic activities that this project will attract will be the people of this community”, he added.

Meanwhile, NLNG’s Manager, Corporate Communication and Public Affairs, Anne-Marie Palmer-Ikuku explained the grants followed a competitive pitch-a-thon that brought the programme to a close, with participants presenting their business ideas and funding requirements before a panel of judges.

She said selections were based on the viability, scalability, and sustainability of each proposal.

Speaking at the event, NLNG’s General Manager, External Relations and Sustainable Development, Sophia Horsfall, said the grant component of VIBES is designed to ensure that participants are not left with just training, but are supported to take the next practical step in establishing their businesses.

“What we are doing with this funding is bridging the gap between learning and execution. Many small businesses struggle at that stage where they have the knowledge but lack the capital to move forward.

“Through VIBES, we are providing targeted support to help these entrepreneurs implement their ideas, stabilise their operations, and position their businesses for growth,” she said.

Horsfall added the initiative reflects NLNG’s broader approach to sustainable community development, noting that combining capacity building with access to funding enables beneficiaries to make measurable progress, strengthen their businesses, and create real economic value within their communities. “It is about providing sustainable livelihoods”, she said.

In his remark, Manager, Community Relations and Sustainable Development, Yemi Adeyemi, commended participants for their dedication throughout the programme and the quality of ideas presented during the pitch-a-thon.

He noted the funding is intended to provide critical growth capital to enable beneficiaries expand operations, improve productivity, create jobs, and strengthen their market position.

He thanked all participants for their commitment and reaffirmed NLNG’s continued investment in enterprise development, and support for initiatives that build local capacity, promote entrepreneurship, and create sustainable economic opportunities in its host communities.

The pitch-a-thon marked the culmination of a four-week intensive business capacity-building programme, during which participants were equipped with practical skills in financial management, business strategy, marketing, and operations to strengthen their enterprises.

The programme, built on innovation, scalability, and sustainability, reinforces NLNG’s commitment to inclusive economic development, integrating capacity building with funding to help entrepreneurs grow, sustain their businesses, and drive long-term impact.

The Minister of State Petroleum Resources (Gas), Rt Hon Ekperikpe Ekpo further described the Utorogu gas plant as aligned with the federal government’s vision of harnessing gas resources for economic growth and energy security noting that it would unlock Nigeria’s vast gas potential under the Decade of Gas Initiative.

He also showered praises on the NCDMB for driving local content development and facilitating investments across the oil and gas value chain, particularly in the Niger Delta.

“I have to commend the Board and Management of Southfield Petroleum Limited for this bold and strategic investment. This project is not only timely but also strongly aligns with the Federal Government’s vision of using Nigeria’s gas resources as a catalyst for economic growth, industrialisation, and energy security.

 “Through strategic interventions and partnerships such as this, the Board is deepening local content, unlocking financing for critical infrastructure, and accelerating gas development. This project clearly demonstrates the NCDMB’s commitment to translating policy into tangible, high-impact investments that deliver value for the economy and the people,” Ekpo said.