• Saturday, May 18, 2024
businessday logo


NESGAS breaks ground on 50,000MT LPG facility, gets minister’s backing

FG signs deal with Shell to supply $3.8 billion methanol facility

A gas producing company, NESGAS, has broken ground on a 50,000 metric tonnes liquefied petroleum gas (LPG) facility in Rivers State, with the minister of state for petroleum resources (gas) expressing his support for the project.

Ekperikpe Ekpo, the minister, who performed the groundbreaking ceremony on Tuesday, said the project would create jobs and boost the local economy.

The LPG depot project is to be constructed at the Oil and Gas Free Trade Zone, NPA Complex, Onne Rivers State and championed by NESGAS, according to a statement.

“The private sector’s dedication to invest in an Infrastructure that will facilitate storage, delivery and consumption of green energy has been identified as a perfect bid for the Federal government to carry out its initiative for cleaner sustainable energy sources,” Ekpo said.

He said gas as a cleaner energy source plays a pivotal role in meeting the energy demand of the country while also mitigating the environmental impact associated with traditional fossil fuels.

“Government recognises the pivotal role of the private sector in driving the nation’s socio economic agenda and it is committed to providing the necessary support to facilitate such an initiative,” he said.

According to Ekpo, the government is planning to put in place laws that will allow smooth operations in the sector. “The government is working to establish laws that will guarantee transparency and even playing field for all players in the market,” he said.

He said the President Bola Tinubu-led administration remained committed to fostering an atmosphere that will support the expansion of the gas industry.

“As the minister of state for petroleum resources – gas, I am here to support the growth of the gas industry in Nigeria, but I am also an official supporter of this cause. Nigeria is endowed with abundant natural gas resources, and it is our duty to harness this potential to drive the nation’s socio-economic development,” he added.

Earlier during the overview of the project, Tunde Banjo, managing director and CEO of NESGAS, said the project presents the dawn of a new chapter in Africa’s energy story.

According to him, the mission is to eliminate energy poverty in Africa through the investment.

“As we embark on the groundbreaking of our latest project, the 50,000 metric tonnes LPG Onne depot, we are on a journey towards a brighter and more sustainable energy future for Africa,” he said.

Emmanuel Uwandu, Managing Director/CEO GAS360, the technical company in the partnership, said the project has multiple potential and the ability to provide about three million small businesses.

“The NESGAS team should be incorporated into the economic planning of Nigeria; we will ensure even those in the creeks get clean cooking gas,” he said.

According to the statement, the LPG depot project is a collective effort of various companies including NESGAS Producing Limited, GAS360, Modern West Advisory and Hebron Gas Infrastructure Company.

Meanwhile, Bloomfield Law Practice is providing legal counsel to the sponsors of the project.