NNPCL To Boost Gas Supply To Starzs CNG Station, Acquires 15% Equity Stake
The Nigerian National Petroleum Company Limited (NNPCL), through its subsidiary, NNPC Gas Marketing Limited (NGML), has pledged to ensure sustainable gas supply to the Starzs Compressed Natural Gas (CNG) facility at competitive prices. Additionally, NNPCL has secured a 15% equity stake in Starzs Gas Limited’s two million standard cubic feet per day (2mmscf/d) CNG mother station located in Iwhrekan, Ugheli South local government area of Delta State.
This partnership was announced during the groundbreaking ceremony of the project, which was attended by key stakeholders, including the Managing Director of NGML, HRN Justin Ezeala, who represented the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo.
The project supports the federal government’s initiative to promote domestic gas utilization to drive industrialization, enhance access to affordable power, and reduce carbon emissions by encouraging the use of CNG as an auto fuel.
The facility is set to supply industrial CNG, power generation, fuel vehicles, convert vehicles to natural gas, and distribute gas to off-grid locations without pipeline infrastructure. The first phase of the project is expected to cost over $7 million.
Vice Chairman of Starzs Gas Limited, Iroghama Ogbeifun, stated that the facility aligns with the federal government’s “Decade of Gas” initiative and the Presidential CNG program, which aims to promote CNG as an auto fuel and reduce carbon emissions. She emphasized that the partnership with NNPC would guarantee a steady gas supply at competitive prices and provide the necessary expertise to ensure the success of the project.
“We are committed to reducing carbon emissions, enhancing energy access, and fostering economic growth across Nigeria. With this partnership, we aim to drive industrial growth, create jobs, and offer affordable energy solutions for the future,” Ogbeifun added.
Ezeala, who confirmed the partnership, highlighted the NNPCL’s role in leading private sector investment in Nigeria’s gas sector, which aligns with the federal government’s call for greater private sector involvement. He reiterated the company’s commitment to supporting the development of the gas sector.
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Felix Ogbe, represented by Mr. Dan Kikile, congratulated Starzs Gas for investing in the CNG sector to support power generation, industrialization, and economic growth. He also emphasized NCDMB’s continued efforts to ensure greater utilization of Nigerian assets and personnel in the oil and gas industry.
The President of the Nigerian Gas Association (NGA), Mr. Akachukwu Nwokedi, praised the project for its potential to reduce carbon emissions and contribute to economic development across Nigeria.
