The operator
of the Otakikpo marginal field in OML 11, Green Energy International Limited
has gotten the nod of the Federal Government to establish a Liquefied Natural
Gas (LPG) extraction plant at Ikuru town in River state.
The License
to Establish (LTE) of the 12mmscfd 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.
The company,
which began production in February this year said it is determined to ensure
full utilization of the gas produced from the field for LPG and power
generation.
It stated
that the approval has made it possible for the company to make Final Investment
Decision (FID) by awarding the engineering, procurement, construction and
installation of the LPG Extraction Plant to PCC-LAMBDA Consortium, formed
between Nigeria Indigenous companies and a Chinese company, Peiyang Chemical
Equipment Co. Ltd (PCC), who is the Original Equipment Manufacturer (OEM) and
will be responsible for manufacturing and design activities associated with
this project.
The
company’s Director of Legal and Corporate services, Olusegun Ilori explained
that the programme involves the use of lean gas to power the 12MW gas generator
at Otakikpo field out of which 5MW would be dedicated to the host community
while the LPG and propane would be bottled and sold.
Part of the
LPG shall be for domestic use within Otakikpo community in order to support
small-scale industries.
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