NNPC Gas Subsidiary Takes 15% Equity Stake in Starz CNG Facility

The station is located at Iwhrekan in Ugheli South Local Government Area of Delta State and largely owned by Nigeria’s foremost maritime investor, Mr Greg Ogbeifun.

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.

The partnership was announced at the groundbreaking ceremony of the project led by the Managing Director of NGML, Mr Justin Ezeala, who represented the Minister of State for Petroleum Resources (Gas), Mr 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 of 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, Miss 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.

Miss 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.

She noted 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”, Miss 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 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,” Miss Ogbeifun added.

On his part, Mr Ezeala, said the state 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 NNPC will supply gas to the facility through the NNPC Gas Company (NGCs) pipeline.