In a major leap forward for Nigeria’s clean energy transition, the Nigerian National Petroleum Company Limited (NNPC), through its subsidiary NNPC Gas Marketing Limited (NGML), has taken a 15% equity stake in the Starzs Gas Limited Compressed Natural Gas (CNG) Mother Station project, situated in Iwhrekan, Ughelli South LGA, Delta State.
The announcement was made during the groundbreaking ceremony of the project, led by NGML Managing Director, HRN Justin Ezeala, who represented the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo. The partnership marks a defining moment for Nigeria’s Decade of Gas initiative, reinforcing the government’s push to deepen the domestic use of natural gas as an affordable, clean, and sustainable energy source.
An Airborne Crisis on Two Fronts
As part of the equity agreement, NNPC has committed to:
- Guarantee gas supply to the facility via the NNPC Gas Company’s pipeline infrastructure
- Support competitive pricing for long-term operational efficiency
- Co-brand the project, allowing the NNPC logo to appear alongside Starzs Gas branding in recognition of the strategic collaboration
“This partnership is a testament to the viability and importance of this project,” said Miss Iroghama Ogbeifun, Vice Chairman of Starzs Gas and Managing Director of Starzs Investments Company Limited.”
She emphasized that this alliance will enable the project to benefit from NNPC’s vast expertise in gas infrastructure and project implementation, further positioning Starzs Gas as a critical enabler of Nigeria’s energy diversification strategy.
The Project: CNG for Industrialization and Sustainability
Located on a 21,002 sqm site near the NAZ 3 Gas Plant in Utorogu, the Starzs Gas CNG Mother Station will have an initial processing capacity of 2 million standard cubic feet per day (2mmscfd), scalable to 5mmscfd within 18 months. With over $7 million invested in the first phase, the facility is expected to be fully commissioned by Q1 2026.
The station will serve as a one-stop gas hub for:
- CNG fueling for vehicles and fleets
- Industrial CNG supply
- Vehicle conversion and training
- Power generation applications
- Off-grid and satellite distribution via a virtual pipeline system
“This facility sets the stage for a future powered by clean, efficient, and sustainable energy,” Ogbeifun said. “It is also a symbol of our commitment to the host community and to national development.”