Oando seals gas supply deal for Bayelsa 60MW power plant
By Damilare Adeleye
Oando PLC has announced that its upstream joint venture with the Nigerian National Petroleum Company Limited has secured a gas supply agreement to support a 60-megawatt independent power plant in Yenagoa.
In a statement issued on Thursday, the company disclosed that the NEPL/Oando Joint Venture serves as the sole gas supplier to the Bayelsa State Independent Power Plant, delivering a contracted volume of 11.2 million standard cubic feet per day.
The gas is supplied through the Elebele Valve Station, which is connected to a major trunkline to ensure an uninterrupted flow of feedstock to the facility.
The 60MW plant, commissioned by President Bola Ahmed Tinubu on April 10, 2026, forms a critical part of Bayelsa State’s broader infrastructure drive to expand access to reliable electricity.
Commenting on the development, Wale Tinubu, Group Chief Executive of Oando, stated that the project reflects the company's long-standing commitment to Bayelsa State and its people.
He noted that by enhancing power reliability, the initiative helps unlock new opportunities for businesses, improves living standards, and stimulates broader economic growth across the state.
He further emphasized that Oando's integrated approach of connecting gas to demand ensures that development remains both sustainable and inclusive.
The project is underpinned by a long-term gas supply arrangement designed to guarantee stable and predictable revenue while supporting domestic gas monetization and diversifying the joint venture’s income streams.
The Bayelsa IPP is expected to deliver stable electricity to tens of thousands of homes, as well as commercial and industrial users in Yenagoa and surrounding areas, thereby reducing dependence on self-generation and lowering energy costs for end-users.
Oando noted that the plant operates as a fully integrated system, combining gas supply, embedded generation, and a ring-fenced distribution network.
The company added that the project highlights the potential for scalable gas-to-power solutions across its infrastructure footprint and reinforces its strategy to deepen participation in Nigeria’s domestic gas value chain.
To support the execution, Oando handled both the Front-End Engineering Design and the Detailed Engineering Design for the tie-in infrastructure connecting the plant to the joint venture’s gas network.
The firm also implemented advanced safety systems to protect critical assets.
This involvement builds on Oando’s track record of delivering major power projects, including the Okpai Independent Power Plant, the Akute Power Project in Ogun State, and the Alausa Independent Power Project in Lagos.