The Nigerian National Petroleum Corporation (NNPC) Limited, via its subsidiary NNPC Gas Marketing Limited (NGML), has secured a 15 percent equity interest in Starzs Gas Limited’s Compressed Natural Gas (CNG) mother station situated in Iwhrekan, Ughelli South Local Government Area of Delta State.
The facility, with a production capacity of 2 million standard cubic feet per day (2mmscf/d) and valued at over $7 million, is anticipated to commence operations in the first quarter of 2026, with plans to scale production to 5mmscf/d within 18 months.
As part of the collaboration, NNPC will ensure the provision of gas at competitive rates and permit its emblem to be displayed alongside that of Starzs Gas as a demonstration of its commitment to the partnership.
During the ceremony, Iroghama Ogbeifun, vice chairman of Starzs Gas Limited, characterized the project as a significant advancement towards a cleaner energy future for Nigeria.
“This facility signifies our steadfast dedication to decreasing carbon emissions, improving energy availability, and promoting economic development, not solely in Delta State or the South-South region but throughout Nigeria,” she stated.
She disclosed that NGML had acquired a 15 percent equity share in the initiative, emphasizing that the partnership would not only guarantee a reliable gas supply at competitive prices but also provide the project access to NNPC’s extensive expertise in the gas industry.
The facility, located in proximity to the NAZ 3 gas plant in Utorogu, is in line with the federal government’s initiative to enhance domestic gas usage, stimulate industrial growth, expand access to affordable energy, and lower the nation’s carbon footprint through the adoption of CNG.
Once operational, it will offer industrial CNG supplies, power generation-based load supplies, natural gas vehicle fueling, vehicle conversion, and general gas distribution to off-grid and satellite locations lacking 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), reiterated NNPC’s dedication to the development of the gas sector, asserting that the company continues to play a vital role in Nigeria’s energy transition.
“We are honored to acknowledge a vision that has been in development for quite some time. A vision that transitions from marine to gas, and from gas, it will progress elsewhere. Wherever the journey leads, we navigate, we follow. However, we pursue responsible leadership. A leader without followers is merely taking a stroll,” he remarked.
He confirmed that NNPC would supply gas to the facility via the NNPC Gas Company (NGC) pipeline and underscored the significance of collaboration in leveraging Nigeria’s abundant natural gas resources to foster economic expansion.
Greg Ogbeifun, chairman of Starzs Gas Limited, described the formation of Starzs Gas as a “generational transformation” for the Starzs Group, a company historically concentrated on maritime endeavors.
He disclosed that his decision to enter the gas sector was motivated by his daughter, Iroghama Ogbeifun, who encouraged him to consider the global impetus for reducing carbon emissions and Nigeria’s objectives in eliminating gas flaring as an entrepreneurial opportunity.
“I acquiesced and supplied the requisite material assistance for this emerging enterprise, which concentrates on gas for industrial usages, gas-to-power, and gas as automotive fuel,” he stated, adding that Starzs Gas would similarly engage in engineering, procurement, and construction (EPC) initiatives 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 for Corporate Communication and Stakeholder Coordination, commended Starzs Gas for its audacious investment in the compressed natural gas (CNG) sector.
In a message of goodwill, Francis Waive, representative for Ughelli North/South/Udu federal constituency in the House of Representatives, endorsed the initiative as a significant advancement for his constituency.
“This is my area, my community, my constituency,” he remarked, encouraging residents to back the initiative and avoid actions that could hinder its advancement.
Akachukwu Nwokedi, president of the Nigerian Gas Association (NGA), emphasized the project’s importance in diminishing carbon emissions while providing economic advantages.
He also praised the partnership between NGML and Starzs Gas and acknowledged Ekperikpe Ekpo for his dedication to advancing the gas industry.
