The government of Delta State has struck a collaboration with petroleum industry solutions provider, Xenergi Limited, to establish a robust infrastructure and facility base for development of the KGG Gas Eco-Industrial Park (KGIP).
The collaboration, according to the partners, brings the Xenergi consortium, the Delta State Government and the Delta Special Economic Zone (DSEZ) together in a strategic initiative to attract global investments to an infrastructure enhanced operating haven conceived to be hosted in the state.
The partnership is focused on securing world-class infrastructure and facilities essential for the development of gas-based industries and the financing, engineering, procurement, and installation of such within the KGIP.
Activities in the new KGIP area are to be fired with clean, affordable and sustainable gas from the existing Kwale Gas Gathering (KGG) facilities for speedy industrial evolution and efficient commercial operations across the DSEZ.
The strategic step by the Delta State Government and Xenergi Limited plugs directly into the Nigerian gas vision, the realisation of which is currently accelerated by the incumbent President Bola Ahmed Tinubu administration of the federal government under the Decade of Gas agenda.
The Decade of Gas programme addresses a combination of economic needs, environmental responsibility and energy diversification as captured in the Nigerian vision for its abundant gas resources. The federal government has in recent years challenged the petroleum industry with a set of economic targets to harness produced gas for catalysing national economic and industrial growth, fire power generation and also fuel transportation.
With the robust policies and programmes being implemented under the Decade of Gas programme, government has mandated the petroleum industry to drive domestic economic development and accelerate industrial growth with sustainable and efficient gas resources.
To enable private companies like Xenergi Limited commit funds towards deepening the domestic gas market and diversifying the nation’s energy products, government has, through the Decade of Gas agenda created robust commercial arrangements for development of gas-based industries to drive the economy along global trends in energy transition.
The public-private partnership and the ambitious KGIP project therefore mark a significant step forward in realisation of the collective industry mandate to stake huge investments in developing new infrastructure and facilities for domestic gas supply. The project therefore forms a key success factor for the viability of the DSEZ industrial area in Kwale, Delta State, Nigeria.
“Together, we intend to create a robust environment that will not only facilitate the growth of gas-based industries (GBI) but also attract and retain investors and industry leaders in related fields of business,” the partners declared in a statement.
Secretary to the State Government of Delta State, Dr. Kingsley Emu, emphasised the importance of the KGIP to the local economy.
“This partnership underscores our commitment to driving economic development and creating opportunities for our people which aligns with His Excellency the Executive Governor of Delta State, Rt. Hon. (Elder) Sheriff Francis Orohwedor Oborevwori’s MORE Agenda. The KGG Gas Eco-Industrial Park is a testament to the potential we have here in Delta State, and we are proud to work alongside Xenergi and its joint venture partners to bring the Governor’s vision to fruition,” he pointed out.
He stated that development of the KGG Gas Eco-Industrial Park represents a pivotal moment for Delta State, adding that the project comes along with job creation, technological advancement, and economic growth to realization. It is a privilege to work with esteemed partners like the Xenergi consortium and DSEZ to realize this vision, which will benefit our people and economy.
The Managing Director of the DSEZ, Mr. Godwin Akpovie, highlighted the role of the industrial park in attracting global partners and stakeholders.
“The KGIP stands as an emblem of progress and opportunity. We eagerly welcome investors and off-takers to experience our region’s potential. It is a clear indication of Delta State’s readiness to embrace the future of industrialization. Our economic zone is uniquely positioned to facilitate seamless investment and collaboration, ensuring that all stakeholders gain immense value from their participation,” he stressed.
Chief Executive Officer of Xenergi, Mr. Emeka Ene, stated that the KGIP, with the support and partnership of upstream and midstream government agencies and regulators, is conceived to enhance Nigeria’s industrial capacity by pooling global investments that provide economic and commercial opportunities for all stakeholders.
“Our dedication to sustainable industrial growth aligns perfectly with the goals of this partnership. By collaborating with upstream operators, the Delta State Government, the DSEZ, and by extension, the federal government, we can collectively elevate Nigeria’s industrial capacity and provide unparalleled opportunities for local and international investors,” Mr Ene declared.
He added that the strategic location and positioning of the KGIP, alongside its cutting-edge infrastructure, is expected to attract top-tier investors and off-takers, establishing it as a leading industrial hub within the region and beyond.
According to him, “Xenergi and her strategic partners are excited to embark on this journey with the Delta State Government and the Delta Special Economic Zone. The KGIP also supports and aligns with the federal government’s drive to accelerate gas-based industrialization with the CNG transportation initiative and the Decade of Gas program. The industrial park shall be an eco-system for gas infrastructure development, industrial efficiency, and innovation, paving the way for a new era of economic growth in the region.”
According to the project promoters, the partnership aims to establish the KGIP as a beacon of industrial excellence and efficiency, providing a fertile ground for future investments to drive socio-economic development in the area.