The Department of Petroleum Resources gave the approval to construct the LPG plant to Green Energy International Limited after it had earlier issued the firm a licence to establish the facility, according to a statement issued in Abuja on Friday.
This is coming as the Nigerian National Petroleum Corporation stated that it had executed contracts for the engineering, procurement, construction, commissioning and financing for Lots 1 and 3 of the 40-inch x 614km Ajaokuta-Kaduna-Kano gas pipeline and stations with a consortium of indigenous and Chinese companies under a 100 per cent contractor financing model.
The Director, Legal and Corporate Matters, Green Energy International, Olusegun Ilori, said the government gave the nod for the commencement of construction of the 12 million standard cubic feet per day capacity LPG extraction plant at Ikuru town in Rivers State.
Green Energy is the operator of the Otakikpo marginal field in Oil Mining Lease 11.
“The ATC (approval to construct) of the 12mmscfd capacity plant was issued to the company sequel to the successful submission of the detailed engineering design of the plant, whose LTE (licence to establish) was issued in 2017,” the firm stated.
It noted that the engineering design was done under the supervision of the indigenous operator by the contractor, PCC-LAMBDA Consortium, which was formed by Nigerian companies and a Chinese firm, Peiyang Chemical Equipment Company Limited.
Green Energy, which began production in February 2017, stated that it was determined to ensure full utilisation of the gas produced from the field for LPG and power generation, among other projects.
Ilori explained that the gas utilisation plant involved the use of the lean gas to power the 12 megawatts gas generator at the Otakikpo field, out of which 5MW would be dedicated to the host communities.
According to him, the LPG and propane will be bottled and sold, adding that part of the LPG would be for domestic use within Otakikpo communities in order to support small-scale industries in the region
On the gas pipeline project, the NNPC stated that under the terms of the contract, Lot 1 with total length of 40-inch x 200km, stretching from Ajaokuta to the Abuja terminal gas station, was awarded to the OilServe/Oando Consortium.
It stated that Lot 3, which runs from the Kaduna terminal gas station to the Kano station, with total length of 40-inch x 221km, was awarded to the Brentex/China Petroleum Pipeline Bureau Consortium.
The Group Managing Director, NNPC, Maikanti Baru, said the AKK Gas pipeline was a section of the Trans-Nigerian Gas Pipeline under the gas infrastructure blueprint designed to enable the industrialisation of the eastern and northern parts of the country.
He noted that the project would also enable connectivity between the East, West and North, which is currently non-existent.
The process for the award of the AKK project commenced in July 2013 with the advertisement for tenders by the corporation.
After a technical and commercial evaluation process, the Federal Executive Council at its 46th meeting on December 13, 2017, approved the contract valued at over $2.8bn.