By Michael Eboh
The Federal Government has given approved to Green Energy International Limited, to build a Liquefied Petroleum Gas, LPG, also called cooking gas extraction plant at Ikuru Town in Rivers State.
In a statement in Abuja, Wednesday, the company, who is the Operator of the Otakikpo marginal field in Oil Mining Lease, OML, 11, said the approval of the License to Establish, LTE, the 12 million standard cubic feet per day, MMSCFD 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.
In the statement signed by the Director of Legal and Corporate services of Green Energy, Mr Olusegun Ilori explained that the gas utilization programme involved the use of lean gas to power the 12 megawatts (MW) gas generator at Otakikpo field out of which 5MW would be dedicated to the host communities in line with its Memorandum of Understanding, MOU, with the government.
He also noted that the LPG and propane would be bottled and sold, while part of the LPG shall be for domestic use within Otakikpo communities in order to support small scale industries.
According to him, the LPG plant which is expected to be completed within 12 months would be a booster for Nigeria’s drive toward utilization of gas resources for domestic gas.
He added that the company recently delivered 6MW gas generator to the Ikuru community while the other batches would arrive in the new year.
The company added that the approval has made it possible for it to make final investment decision, FID, by awarding the Engineering, Procurement, Construction & Installation contract for the LPG Extraction Plant to PCC-LAMBDA Consortium, formed between Nigeria Indigenous companies and a Chinese company, Peiyang Chemical Equipment Company Limited (PCC), who is the original equipment manufacturer (OEM) and will be responsible for manufacturing and design activities associated with this project.
The company added that it was determined to ensure full utilisation of the gas produced from the field for LPG and power generation.