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 assured sustainable gas supply to Starzs Compressed Natural Gas (CNG) facility at competitive prices.

The NNPCL has equally agreed to take a 15 per cent equity shareholding in Starzs Gas Limited’s two million standard cubic feet per day (2mmscf/d) CNG mother station in Iwhrekan, Ugheli South local government area of Delta State.

The partnership was announced at the groundbreaking ceremony of the project held recently and led by the Managing Director of NGML, HRN Justin Ezeala, who represented the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo.

The project aligns with the federal government’s commitment to ensure penetration and utilisation of domestic gas to drive industrialisation, increase access to affordable power, and reduce the country’s carbon footprint through the adoption of CNG as autofuel.

The facility is expected to undertake industrial CNG supplies, power generation-based load supplies, natural gas vehicle fueling, vehicle conversion, and general natural gas distribution to off-grid and satellite locations lacking pipeline infrastructure, all supported by a virtual pipeline system and first phase of the project is estimated to cost over $7 million.

Speaking at the event, Vice Chairman of Starzs Gas Limited, Iroghama Ogbeifun, said through the facility, the company and its partners were setting the stage for a future powered by clean, efficient, and sustainable energy and also setting the stage for further development and empowerment in their host community.

Ogbeifun noted that the facility was in tandem with the federal government’s declaration of the current decade as the Decade of Gas, adding that it also supports the Presidential CNG initiative whose mandate was to deepen the use of CNG as auto fuel thereby reducing carbon emissions into the environment.

“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,” Ogbeifun stated.

She said, “Our journey has been fueled by vision, collaboration, and unwavering determination. However, to achieve this project, we require strategic partners who can guarantee it’s success and it is on that note that I am happy to announce that NNPC through its subsidiary, the NNPC Gas Marketing Ltd (NGML) was offered and has agreed to accept a 15 per cent equity in this project.

“This will not only help to guarantee gas supply at competitive pricing but will avail the project all the expertise NNPC has developed over the years in the Gas value chains. This partnership is a testament to the viability and importance of this project and we look forward to an impactful relationship.”

She recognised the invaluable contributions and the steadfast support of the company’s investors, government, regulatory agencies, and the local community while deeply appreciating their collaboration, trust, and shared vision for a greener and more prosperous future.

“As we break ground today, we embark on a journey that will drive industrial growth, create jobs, and provide affordable energy solutions for generations to come,” Ogbeifun added.

In his remarks, Ezeala, who confirmed the partnership between NNPCL and Starzs Gas, said the national oil company was showing the way in the private sector’s response to the federal government’s call for private investment in the nation’s gas space.

Ezeala stated: “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.

Also speaking at the event, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Felix Ogbe, represented by the board’s General Manager, Corporate Communication and Stakeholder Coordination, Mr. Dan Kikile, congratulated Starzs Gas for making such huge investment in the CNG sector to drive power generation, industrialization and expand the country’s economy.

In line with its mandate, Ogbe said NCDMB continues to ensure that more Nigerian assets and more personnel were utilized in the oil and gas industry and more facilities domiciled in the country, adding,“And that’s why we are happy to identify with Starzs Gas Limited that you are starting this key project that will supply gas to different facilities in Delta, Abia, and other states,” he added.

The President of the Nigerian Gas Association (NGA), Mr. Akachukwu Nwokedi, said the project being undertaken would reduce carbon footprint and bring about other economic benefits.