Oando JV seals gas supply deal to power Bayelsa 60MW plant

OANDO PLC has announced a gas supply agreement through its upstream joint venture with NNPC E&P Limited to support a 60-megawatt Independent Power Plant (IPP) in Yenagoa, Bayelsa State.

The project, which was commissioned by Bola Ahmed Tinubu on April 10, 2026, forms part of Bayelsa State’s broader infrastructure development drive aimed at improving electricity access and boosting economic activity, a statement by the oil company on the Nigerian Exchange Limited on Thursday said.

Under the arrangement, the NEPL/Oando JV will serve as the sole gas supplier to the plant, delivering 11.2 million standard cubic feet of gas per day via its Elebele Valve Station. The facility is connected to a major trunkline, ensuring a steady and uninterrupted gas supply to the power plant.

The long-term gas supply agreement is expected to provide the joint venture with stable and predictable revenue, while supporting domestic gas monetisation and expanding its income streams beyond crude oil.

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Group Chief Executive of Oando, Mr Wale Tinubu, said the project underscores the company’s commitment to economic development in Bayelsa, noting that improved electricity reliability would create opportunities for businesses and enhance living standards in the state.

He added that the company’s integrated approach, which borders on linking gas production directly to power generation, ensures sustainable and inclusive development.

The Bayelsa IPP is projected to supply electricity to tens of thousands of households, as well as commercial and industrial users in Yenagoa and surrounding areas. It is also expected to reduce reliance on self-generation and lower energy costs for consumers.

Designed as a fully integrated system, the project combines gas supply, embedded power generation, and a dedicated distribution network. It also highlights the role of public-private partnerships in delivering critical infrastructure across Nigeria.

Oando executed both the Front-End Engineering Design (FEED) and Detailed Engineering Design (DED) for the project’s gas connection infrastructure, and provided technical support during commissioning and gas introduction, with safety systems installed to protect connected assets.

The development aligns with Oando’s broader strategy to expand its footprint in Nigeria’s domestic gas value chain. The company has previously delivered major power projects, including the Okpai Independent Power Plant (IPP), the Akute IPP in Ogun State, and the Alausa IPP in Lagos, which have contributed to improved grid reliability and localised power supply.