Delta: NNPC Acquires 15% Stake In A $7m CNG Plant In Urhobo Community

L-R: General Manager, Corporate Communications and Zonal Coordination, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Esuene Dan Kikile; Chairman, Starzs Gas Limited, Mr. Greg Ogbeifun; Member representing Ugheli North/South/Idu Federal Constituency at the House of Representatives, Hon. Francis Waive; Managing Director, NNPC Gas Marketing Limited (NGML), HRH Justin Ezeala; snd Vice Chairman, Starzs Gas Limited, Iroghama Ogbeifun, at the groundbreaking of Starzs Gas 2MMSCF/D Compressed Natural Gas Facility at Iwhrekan community, Ugheli South LGA, Delta State…recently.
LAGOS FEBRUARY 17TH (URHOBOTODAY)-The Nigerian National Petroleum Company (NNPC) Limited through its subsidiary NNPC Gas Marketing Limited (NGML), has acquired a 15 percent equity stake in Starzs Gas Limited’s Compressed Natural Gas (CNG) mother station in Iwhrekan, Ughelli South Local Government Area of Delta State.
The 2 million standard cubic feet per day (2mmscf/d) facility, estimated at over $7 million, is expected to be commissioned in the first quarter of 2026, with a planned scale-up to 5mmscf/d within 18 months.
As part of the partnership, NNPC will guarantee gas supply at competitive pricing and allow its logo to be displayed alongside that of Starzs Gas in a show of commitment to the collaboration.
Speaking at the ceremony, Iroghama Ogbeifun, vice chairman of Starzs Gas Limited, described the project as a bold step towards a cleaner energy future for Nigeria.
“This plant represents our unwavering commitment to reducing carbon emissions, enhancing energy accessibility, and fostering economic growth, not only in Delta State or the South-South region but across Nigeria,” she said.
She announced that NGML had accepted a 15 percent equity stake in the project, stating that the partnership would not only ensure a steady gas supply at competitive prices but also give the project access to NNPC’s wealth of expertise in the gas sector.
The facility, located near the NAZ 3 gas plant in Utorogu, aligns with the federal government’s push to expand domestic gas utilization, drive industrialisation, increase access to affordable power, and reduce the country’s carbon footprint through CNG adoption.
Once operational, it will provide industrial CNG supplies, power generation-based load supplies, natural gas vehicle fueling, vehicle conversion, and general gas distribution to off-grid and satellite locations without pipeline infrastructure, supported by a virtual pipeline system.
Justin Ezeala, managing director of NGML, who represented Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), reaffirmed NNPC’s commitment to gas sector development, stating that the company remains a key driver of Nigeria’s energy transition.
BusinessDay
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