As of May. 7, Construction work has started for new Utorogu gas processing plant in Ughelli, Delta State.
The project is being developed together by Southfield Petroleum Limited (SPL) and Nigerian Content Development and Monitoring Board (NCDMB). The main aim is to turn gas that was being flared into useful gas for people and industries inside Nigeria.
The plant, called Southfield Utorogu Gas Processing Plant, is built to process about 200 million standard cubic feet per day of wet associated gas from OML 34.
OML 34, also known as Omerelu, has four fields and estimated gas reserve of about 3 trillion cubic feet. The oil block is operated by Nigerian National Petroleum Company (NNPC) and ND Western. The block also supplies gas to West African Gas Pipeline.
When the plant starts full operation, it will produce lean gas that will be sent into Escravos-Lagos Pipeline System. This pipeline gives fuel to around 70 percent of thermal power plants in Nigeria.
The project is expected to finish in 2027. After completion, the plant is expected to produce around 123,000 tonnes yearly of LPG and about 72,000 tonnes yearly of condensate. It will also produce propane for local and industrial use.
According to Abdulmalik Halilu, director of corporate services at NCDMB, the project will help improve cooking gas supply in Nigeria and reduce the country’s dependence on imported LPG.
The total final cost of the project has not been announced yet. But earlier estimate in 2016 put the value around $250 million.
Also in 2016, Southfield Petroleum signed a turnkey engineering, procurement and construction contract worth $198 million with China Machinery Engineering Corporation.
Funding support for export side of the project was provided by Industrial and Commercial Bank of China (ICBC).
