DIDA Engages SPL Utorogu Over N13.6 Billion Gas Facility Proposal in Delta

DIDA Engages SPL Utorogu Over N13.6 Billion Gas Facility Proposal in Delta

By Magnus Emuji 

The Delta State Investment Development Agency, DIDA, on Thursday, September 9, 2026 held a strategic meeting with SPL Utorogu Co. Limited to review a proposal for an integrated gas facility in Utorogu, Delta State. 

The meeting, which held at the DIDA Conference Room between 11:58am and 1:40pm, brought together top officials of the agency and the management of SPL Utorogu to discuss investment opportunities in the state’s gas sector.

Declaring the meeting open, Chairman of DIDA, Chief Lucky Oghene-Omoru, welcomed the delegation and described the proposal as well thought out. He noted that over 40 percent of Nigeria’s gas deposits are located in Delta State, adding that DIDA’s mandate is to promote and facilitate investments that will drive economic growth in the state.

Leading the SPL delegation, Dr. Billy Agha said the visit was for a preliminary presentation of the project concept.

 He acknowledged Delta State’s dominance in gas reserves and emphasized that the company’s plan aligns with national efforts to expand LPG and CNG utilization. 

Also speaking, the Chairman of SPL Utorogu Co. Limited, Dr. Patrick Ndiomu disclosed that ground breaking for the project had already been carried out and that the core phase is scheduled to commence in September 2027, subject to prevailing conditions.

According to the presentation, SPL Utorogu proposes to develop an integrated facility adjacent to the existing SPL Utorogu Gas Processing Facility.

Presenting the overviw of the project, the Managing Director, Engr. Bawa stated that the  project will comprise three major components. Bawa listed the components to include a trailer park with capacity to accommodate up to 250 trucks for loading LPG and other petroleum products, a CNG station for distribution to daughter stations within a 150 to 250 kilometer radius, and an LPG conversion workshop.

The company informed DIDA that significant milestones have already been achieved. These include land acquisition and survey, execution of agreement with the host community, construction and commissioning of the site, and completion of engineering design.

 To drive execution, SPL stated that a Special Purpose Vehicle, SPV, will be incorporated to manage the project and attract co-investors.

On financing, SPL Utorogu Co. Limited put the total project cost at N13.6 Billion and said the funding model is open to both equity and debt. 

The company projected that the facility will create 2,000 direct and indirect jobs during construction and operation. 

It cited rising national demand for LPG and CNG, government policy promoting cleaner fuels, proximity to a gas processing plant, and growth in logistics and transportation as key demand drivers.

Responding, the Chairman of the Agency, Olorogun Lucky Oghene-Omoru requested for more information regarding the other components of the project, regarding Gas Supply Agreement, production and it's readiness/available for trailer park .

He noted that the presentation was based on initial business plan but there is need for a proper Bankable Feasibility Study with Financial Model project funding with envisaged role of Delta State Government and other parties well spelt out .

 Oghene-Omoru noted the existence of a trailer park in Warri/Effurun and disclosed that other investors have also submitted proposals for similar facilities in the state.

 He stressed that such investments are profit-driven and that Utorogu is accessible to tankers, which makes the location viable.

The Director General of DIDA, Hon. Dr. Emeka Anthony Elekeokwuri, assured SPL of the agency’s partnership but said a comprehensive feasibility study is necessary.

 He explained that the study will help assess project direction, identify potential challenges, and review lessons from previous failed trailer park proposals in the state.

 The DG also noted the $250 million project cost referenced during deliberations, a figure that differs from the N13.6 Billion presented by SPL.

After extensive deliberations, both parties adopted three key resolutions. First, SPL Utorogu Co. Limited is to conduct and submit a comprehensive feasibility study on the proposed project to DIDA for review. Second, the company will invite DIDA for a site visitation to the proposed location in Utorogu. Third, SPL will redesign the proposal based on DIDA’s feedback and findings from the feasibility study.

The meeting ended with DIDA reiterating the Delta State Government’s readiness to do business with credible investors.

 Both parties expressed optimism that with proper planning and collaboration, the Utorogu facility can contribute significantly to job creation and energy development in Delta State.