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 equallyagreed to take a 15-per cent equity shareholding in Starzs Gas Limited’s 2 million standard cubic feet per day (2mmscf/d) CNG mother station in Iwhrekan, Ugheli South Local Government Area of Delta State.
As part of the equity partnership, the company has also agreed to guarantee gas supply to the multi-million-dollar facility on a competitive pricing basis and allow its logo to stand side by side with that of Starzs Gas in further demonstration of the partnership.
Starzs Gas is owned by Nigeria’s foremost maritime billionaire and multi-portfolio investor, Mr. Greg Ogbeifun.
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 facility sited close to NAZ 3 gas plant in Utorogu, on a land size of 21,002.226sm2, is planned for inauguration in the first quarter (Q1) 2026 while its scale up to 5mmscf/d will happen within 18 months.
The project aligns with the federal government’s commitment to ensure penetration and utilisation of domestic gas to drive industrialization, increase access to affordable power, and reduce the country’s carbon footprint through the adoption of CNG as autofuel.
Upon completion. the one-stop-shop 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.
The 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.
Noting that the South-south region has long been a pillar of Nigeria’s energy landscape, she said with this project, the company was reinforcing that legacy by harnessing natural gas as a cleaner alternative to conventional fuels.
“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 however, announced the strategic partnership with NNPCL, saying NGML was offered and has agreed to accept a 15 per cent equity stake in the project.
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.
He reiterated that the NNPCL will supply gas to the facility through the NNPC Gas Company (NGC)’s pipeline.
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.
“So, we believe in the vision of Starzs Gas. It’s been led by a gentleman. And he’s handed over the torch to a wonderful lady.
“And my colleagues from NGC there, it’s their pipeline here that we are going to connect from. So, I will talk to them later and tell them that we really need to do this.”
He highlighted the unlimited potential Nigeria has and the importance of a whole-of-stakeholder collaboration to actualize the government’s vision of utilizing the abundant natural gas resources to stimulate and power the economy.
“And this is what we are doing. So, as we go out to do the groundbreaking today, I can only tell you that in few months, we’ll be here to do the commissioning.
“And for NNPC colleagues who are here, and all the people who are connected with the gas industry, thank you for coming to witness the partnership between Starzs Gas and NNPC”, Ezelala said.
Chairman of Starzs Gas Limited, Mr. Greg Ogbeifun, said the establishment of Starzs Gas Limited signalled “a generational shift,” as the Starzs Group, a conglomerate with such leading companies as Starzs Marine and Engineering Services Limited, Starzs Shipyard Limited, and Starzs Investments Company Limited, had for decades focused largely on the maritime industry.
He said Starzs Gas Limited was the culmination of unrelenting pressure by his daughter, Miss Iroghama Ogbeifun, that the global clamour for elimination of gas flaring and reduced carbon footprint, which form the basis of President Bola Tinubu’s initiatives on gas utilisation, be considered as a challenge to entrepreneurship.
According to him, I yielded and provided the necessary material support for the new company, whose focus is on gas for industrial applications, gas-to-power, and gas as auto fuel. The company is also engaged in engineering, procurement and construction (EPC) projects within the gas subsector.
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.
“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.
In a good;will message, Member representing Ugheli North/ South/Udu federal constituency at the House of Representatives, Hon. Francis Waive, expressed his excitement with groundbreaking, which he said was important for him.
“This is my place, my community, my constituency”, he told the community,” adding, “Let us work with Starzs to achieve success,” noting that development was coming to them if the people would refrain from disruptive activities”
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.
He commended the partnership between the NGML and Starzs Gas as well as the focus and tenacity of the Minister of State for Petroleum Resources (Gas), Ekpo, for developments in the subsector.