NNPC acquires 15% stake in a $7m CNG plant in Delta

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.

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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.

“We are here to pay homage to a vision that has been on for quite some time. A vision that will move from marine to gas, and from gas, we take it somewhere else. Wherever the path leads, we walk, we follow. But we follow responsible leadership. A leader without followers is taking a walk,” he said.

He confirmed that NNPC would supply gas to the facility through the NNPC Gas Company (NGC) pipeline and emphasised the importance of collaboration in harnessing Nigeria’s abundant natural gas resources to stimulate economic growth.

Greg Ogbeifun, chairman of Starzs Gas Limited, described the establishment of Starzs Gas as a “generational shift” for the Starzs Group, a company that has traditionally focused on maritime ventures.

He revealed that the decision to enter the gas sector was driven by his daughter, Iroghama Ogbeifun, who urged him to consider the global push for reduced carbon emissions and Nigeria’s gas flaring elimination goals as an entrepreneurial challenge.

“I yielded and provided the necessary material support for this new company, which is focused on gas for industrial applications, gas-to-power, and gas as auto fuel,” he said, adding that Starzs Gas would also be involved in engineering, procurement, and construction (EPC) projects within the gas subsector.

Felix Ogbe, executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), represented by Dan Kikile, the board’s general manager of Corporate Communication and Stakeholder Coordination, praised Starzs Gas for its bold investment in the CNG sector.

In a goodwill message, Francis Waive, member representing Ughelli North/South/Udu federal constituency at the House of Representatives, welcomed the project as a major development for his constituency.

“This is my place, my community, my constituency,” he said, urging locals to support the initiative and refrain from activities that could disrupt its progress.

Akachukwu Nwokedi, president of the Nigerian Gas Association (NGA), highlighted the project’s significance in reducing carbon emissions while delivering economic benefits.

He also commended the collaboration between NGML and Starzs Gas and acknowledged Ekperikpe Ekpo for his commitment to growing the gas sector.