The Nigerian National Petroleum Company Limited through its subsidiary, NNPC Gas Marketing Limited has agreed to take a 15 per cent equity shareholding in Starzs Gas Limited’s 2 million standard cubic feet per day Compressed Natural Gas mother station in Iwhrekan, Ugheli South Local Government Area of Delta State.
As part of the equity partnership, the national oil 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, Justin Ezeala, who represented the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
The facility is planned for inauguration in the first quarter of 2026 while its scale up to 5mmscf/d will happen within 18 months.
The project aligns with the Federal Government’s commitment to reduce the country’s carbon footprint by adopting CNG as auto fuel.
Upon completion, 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.
The first phase of the project is estimated to cost over $7m.
Speaking at the event, the 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 announced the strategic partnership with NNPCL, saying NGML was offered and has agreed to accept a 15 per cent equity stake in the project.
“Our journey has been fueled by vision, collaboration, and unwavering determination. However, to achieve this project, we require strategic partners who can guarantee its success and it is on that note that I am happy to announce that NNPC, through its subsidiary, the NNPC Gas Marketing Ltd 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 of 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 mentioned the contributions and support of the company’s investors, the government, regulatory agencies, and the local community while 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.
Speaking, Ezeala, who confirmed the partnership between NGML 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’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. 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.
“My colleagues from NGC, 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.”
Chairman of Starzs Gas Limited, 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, Iroghama, 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.
“I yielded and provided the necessary material support for the new company, which 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 projects within the gas subsector,” he stated.
Also speaking at the event, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Mr Felix Ogbe, represented by the board’s General Manager, Corporate Communication and Stakeholder Coordination, Mr Dan Kikile, congratulated Starzs Gas for making such a huge investment in the CNG sector to drive power generation, industrialisation 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 utilised in the oil and gas industry and more facilities domiciled in the country.
