Oando JV Commences 11.2 MMSCFD Gas Delivery to Yenagoa IPP

In a significant boost for energy security in the Niger Delta, Oando PLC has announced that its joint venture (JV) with NNPC E&P Limited (NEPL) has officially commenced gas delivery to the newly inaugurated 60-megawatt (MW) Yenagoa Independent Power Project (IPP).

The announcement, made on April 16, 2026, follows the formal commissioning of the facility by President Bola Ahmed Tinubu on April 10. Located in Elebele, Ogbia Local Government Area of Bayelsa State, the plant is designed to solve long-standing electricity deficits in one of Nigeria’s primary oil-producing hubs.

The Feedstock Blueprint

The NEPL/Oando JV serves as the sole gas supplier to the 60MW facility, underpinned by a long-term agreement to ensure the plant’s operational viability.

• Gas Volume: The JV is contracted to deliver 11.2 million standard cubic feet per day (MMSCFD) of natural gas.

• Infrastructure: Feedstock is channeled through the JV’s Elebele Valve Station, which is interconnected with a major regional trunkline.

• Technical Role: Beyond supply, Oando provided the initial engineering design for the gas connection infrastructure and offered technical support during the critical commissioning phase.

Economic Impact in Bayelsa

The Yenagoa IPP is more than just a generation plant; it is an integrated energy system. By combining gas supply with embedded generation and a dedicated distribution network, the project bypasses many of the traditional bottlenecks associated with the national grid.

Wale Tinubu, Group Chief Executive of Oando, emphasized that the initiative is a catalyst for regional growth. “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 stated. For tens of thousands of homes and businesses in Yenagoa, this marks a shift toward 24/7 power availability.

Bayelsa’s New Regulatory Frontier

The operationalization of the Yenagoa IPP coincides with a historic shift in how power is managed in the state. Bayelsa recently became the latest state to take full control of its electricity market under the Electricity Act 2023:

• BYERA Takeover: The Bayelsa State Electricity Regulatory Agency (BYERA) assumed full regulatory oversight from NERC on February 20, 2026.

• State-Led Distribution: As part of this transition, the Port Harcourt Electricity Distribution Company (PHED) was mandated to create a dedicated subsidiary to manage Bayelsa’s internal distribution.

• Autonomy: BYERA now has the legal authority to issue its own licences, set localized tariffs, and promote independent investment in embedded power solutions like the Elebele facility.

The Bigger Picture: Gas-to-Power Strategy

For Oando, the Yenagoa project is a key component of its broader strategy to deepen its footprint in Nigeria’s domestic gas value chain. By linking upstream gas assets directly to subnational power projects, the company is bypassing the liquidity issues often found in the centralized national market.

As Bayelsa begins to exercise its new regulatory powers, the success of the Yenagoa IPP could serve as a model for other oil-producing states looking to convert their gas reserves into immediate electricity for their citizens.