NPDC Edo Gas Handling Facility Targets 40% Local LPG Market

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Silhouette of working oil pumps on sunset background

The Nigerian Petroleum Development Company (NPDC), an Upstream Subsidiary of the Nigerian National Petroleum Corporation (NNPC), said its Oredo Integrated Gas Handling Facility when completed will meet 40 per cent of the country’s domestic LPG market demand.

The Managing Director of the NPDC, Mr. Yusuf Matashi, stated during during a tour of facility by the board of directors of the company led by the Group Managing Director, Dr. Maikanti Baru, on Wednesday.

Commending the board for coming down to inspect the gas facilities, Mr. Matashi project will boost the earning capacity of the company.

Speaking of the potentials of the firm, he said, “The LPG Dispensing Facility strategically offered 40 per cent solution for Nigeria’s domestic LPG market which would translate into extra cash flow for the company.

“Another advantage is that it will ensure ease of distribution and penetration into the market. You can take LPG to every nook and cranny of the country from here. So, it is quite strategic,” he stated.

A statement issued by the spokesman of NNPC, Ndu Ughamadu in Abuja yesterday said the world-class facility consist of Oredo Gas-to-Pan-Ocean Facility, Oredo Integrated Gas Handling Facility (IGHF), as well as the Oredo LPG Dispensing Facility, is located on the NPDC’s Oredo Flow Station, all in Edo State.

According to him, the project has achieved a 100 per cent local content input in the development.

The statement added that, the IGHF is currently at 80 per cent completion. When completed in December, it will make provision for dehydration of gas and liquid extraction. It is expected to also produce both Liquefied Petroleum Gas (LPG) and Propane, in addition to dry gas to the Escravos Lagos Pipeline System (ELPS).

Commending NPDC on the feat, Dr. Baru said he was proud that a world-class facility was being put in place by a Nigerian engineering contractor in conjunction with another Nigerian company, the NPDC.

“From engineering, construction to erection of the various units, we feel very encouraged by the huge man-hours which you are putting in here, day and night, with full local content,” Baru said.

He described the Oil Mining Lease (OML) 111, where the gas projects are located, as one of the most significant assets of the NPDC because it is where the corporation’s staff and their contractors design, build and operate facilities hitherto operated by the International Oil Companies (IOCs).

“You could see that right from the well-design through to reception of the various liquids to the processing and disposal of the various outputs, it is fully indigenous. So, it cannot be better than this,” he added.

He said as a National Oil Company (NOC), the corporation was using this to showcase its ability to intervene, stressing that “we are not just a player, we are also building capacity that can enable us intervene by taking over any assets whenever any contractor decides to opt out,” he added.

Dr. Baru stated that the project’s funding constraints would be addressed soonest, stressing that NNPC was considering alternative means to support and complete the project.

“All these projects are located within OML 111, one of our critical assets which we are keen on deriving maximum benefits from,” he stated.

Speaking on NPDC’s Corporate Social Responsibility (CSR) efforts, Mr. Matashi said the company had engaged youths within the host community area, with a number of them fully involved in the local contracts around the project as well as the pipeline Right Of Way (ROW).

“We have also completed a Skills Acquisition Centre which is currently being furnished in line with the component of the project. We intend to commission the centre even before the project is completed. From our records, this is one project that has engendered cordial relationship with the Oredo community and we hope to replicate similar understanding in other areas within the Niger Delta,” Matashi stated.

In his remarks, the NNPC Chief Operating Officer, Upstream, Mallam Bello Rabiu, who expressed happiness that the project would be delivered within time and budget, also charged the workers to double the over one million man-hours achieved so far in the project without any incidence.

While further assuring of timely funding for the project, the NNPC Chief Financial Officer, (CFO) Isiaka Abdulrazaq, commended the NPDC Management for performing impressively on the project and for its drive towards making NPDC the E&P Company of choice in Nigeria.

Located 34km southeast of Benin City, the OML 111 is an onshore field comprising five fields viz: Oki-Oziengbe-South, Aroh North, Koko, Oghama as well as Oredo, which has twelve (12) out of its fifteen (15) wells currently producing.

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