Sylvester Idowu writes on efforts by the federal government to reduce gas flaring and boost revenue with the inauguration of Egbaoma Gas Plant in Delta State
The effort of the federal government to improve dwindling oil and gas revenue through the participation of indigenous businesses in gas production activities recently received a boost with the inauguration of the PNG Gas Limited’s Egbaoma Gas Processing Plant (EGPP) in Ebedei in Ukwani Local Government area of Delta State recently.
The $60 million EGPP is a wholly indigenous gas processing plant with capacity to process 30 million standard cubic feet of wet gas daily. It offtakes Wet Gas from the Platform Petroleum/Newcross JV Flow Station to produce Liquefied Petroleum Gas (LPG), Propane, Lean Gas and Natural Gas Liquid (NLG).
The plant contributes to the supply of LPG and Propane to the domestic market while the Lean Gas and NGL are supplied to the industrial sectors.
Egbaoma Gas Processing Plant has produced over 35,000 Metric Tons of gas for Nigerian market since inception.
This is in addition to achieving an excellent health, safety and environment performance of about 1.44 million lost time incident (LTI) free man hours at the end of January 2019.
The plant was wholly constructed by Nigerian engineers in line with the local content policy of the federal government, thus signalling that local engineers and artisans can compete with their counterparts in advanced countries.
Performing the inauguration of the plant in the sleepy town of Ebedei community, the Group Managing Director , Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru was elated about the feat achieved by both the investors and Nigerian engineers.
The high and mighty in the oil and gas industry in the country were on ground for the epoch making event which has started transforming the predominantly farming community into a major gas hub and a cosmopolitan city.
Baru, whose face betrayed his excitement with the development said the plant was the “only onshore third party gas extraction and fractionation plant of its kind in Nigeria today and a mascot of the new gas revolution.”
Continuing, he said the plant signpost the nation’s engineering prowess and local content capacity.
The NNPC boss commended the promoter of the project, Engr Charles Osezua , Chairman Owel-linkso group for the initiative, noting that this was not his first voyage into gas distribution project in the country.
“This is not your first start-up. You had done it before with Gaslink that started gas distribution in the Ikeja, Lagos area which has spread to Apapa and beyond,” he said.
Baru urged gas operators that are close to the Egbaoma gas plant to come together to supply gas to the plant to maximise its capacity to commercialise flared gas, stressing that the move will be one of the key steps towards ending gas flare in the country.
He also said steps were on to effectively monetise gas resources for national economic growth, adding “I also wish to use this medium to assure Deltans and Nigerians that the journey to effective monetisation of our vast gas resources for sustainable economic growth and complete end to gas flaring is underway and the future is very bright.”
The Chairman of Owel-Linkso, promoter of Gas train and Director in PNG Gas limited, driver of the project, Engr. Osezua, in his remark thanked members of Ebedei community for their friendliness and peaceful disposition towards the project which took off in the area five years ago.
He said about $60 million had so far been invested in the project, adding that the plant produces 30 million standard cubic feet of wet gas daily .
“The gas plant offtakes wet gas from the Platform Petroleum /Newcross JV flow station to produce liquefied petroleum gas, LPG, propane, lean gas and natural gas liquids, NGL.
“The plant contributes to the supply of LPG and propane to the domestic market. The lean gas and NGL are supplied to the industrial sectors,” he said.
He added that Egbaoma which is entirely an indigenous gas processing plant has produced about 35,000 metric tonnes of gas for the nation’s domestic market since it took off.
He said about 500 homes currently utilise the LPG from the plant, adding that they have also stimulated interest among Nigerians to buy propane for use.
Osezua, however made a special appeal to the GMD of NNPC to develop an industrial gas hub that would bring all gas producers together, thus eliminating multiplicity of gas plants in the country.
He also appealed for support for them to replicate the gas processing plant in other parts of the county.
Gabriel Elere, who also spoke gave an overview of the plant acknowledging that the gas processing plant has started creating indirect employment in the neighbourhood with eateries and petty shops already springing up around the plant to serve staff.