A joint venture involving Oando Plc has started delivering gas to a newly completed 60-megawatt power plant in Yenagoa, Bayelsa State, marking a key step toward improving electricity supply in the region. The project is being executed in partnership with the Nigerian National Petroleum Exploration and Production Limited (NEPL), forming the NEPL/Oando joint venture.
The gas supply arrangement is central to the operation of the independent power plant, which is expected to provide more stable electricity to homes and businesses in Yenagoa and nearby communities. The development is seen as a major boost for Bayelsa State, an oil-producing region that has long struggled with unreliable power supply despite its resource wealth.
According to the company, the joint venture plays a critical role in ensuring the plant runs efficiently by supplying the gas needed for generation. The gas is transported through the Elebele Valve Station and connected to a larger trunkline, creating a steady and uninterrupted flow to the facility. This infrastructure is designed to support consistent operations and reduce the risk of supply disruptions.
“The NEPL/Oando JV is the sole gas supplier to the plant, with a contracted volume of 11.2 million standard cubic feet per day (11.2 MMSCFD). Gas is delivered via the JV’s Elebele Valve Station, interconnected with a major trunkline, ensuring an uninterrupted feedstock supply to the IPP.”
The power plant operates as a fully integrated system, combining gas supply, electricity generation, and a dedicated distribution network. This structure ensures that power generated is efficiently transmitted to end users, minimizing losses and improving voltage stability.
The project is expected to supply electricity to thousands of households and businesses, reducing dependence on self-generated power such as diesel and petrol generators. This shift could lower energy costs for consumers and support economic activities across the state.
Speaking on the broader impact, Group Chief Executive of Oando, Wale Tinubu, highlighted the economic benefits tied to improved electricity access. He noted that better power supply would help businesses grow and improve living conditions in the area.
“By enhancing power reliability, we are helping to unlock new opportunities for businesses, improve living standards, and stimulate broader economic growth across the State,” he said.
In addition to supplying gas, the joint venture also contributed to the engineering and technical aspects of the project. This includes designing the gas connection infrastructure and supporting the commissioning phase, ensuring the plant is fully operational.
The initiative aligns with Oando’s broader strategy to expand its role in Nigeria’s gas-to-power value chain. By linking gas production directly to electricity generation, the company aims to create more efficient energy solutions that meet local demand.
The project also reflects a growing trend of decentralized power solutions in Nigeria, especially in areas facing challenges with the national grid. By bringing generation closer to consumers, such projects can offer more reliable and resilient electricity supply.
Overall, the commencement of gas delivery to the Yenagoa power plant represents a significant milestone in efforts to strengthen energy access in Bayelsa State, with potential long-term benefits for businesses, residents, and the wider economy.
