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FG eyes 1,268mw from new eight power plants

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The Federal Government is expecting 1,268 megawatts of power from the concession and development of eight brown and green field hydropower projects constructed through public private partnerships.

It was gathered that three of the power projects were already given to concessionaires, while the Federal Executive Council had approved the concession of another of the power projects.

In a February 2024 document obtained from the Federal Ministry of Water Resources and Sanitation in Abuja on Friday by our correspondent, it was observed that while three of the hydropower projects had been completed, the remaining five were in various stages of completion.

The document was presented to the National Council on Water Resources and Sanitation at its 30th regular meeting by the Minister of Water Resources and Sanitation, Prof. Joseph Utsev.

The country has been struggling with poor power generation and supply, as electricity firms generate and distribute between 3,000MW and 4,000MW for a population of over 200 million people.

The abysmal electricity supply situation grew worse since January this year after suppliers of gas to gas-fired thermal power plants stopped supplying the product to the plants due to the $1.3 billion debt of the electricity generating plants.

To ameliorate the crisis, the Federal Government has been investing in hydropower plants that do not use gas, but are run by water-powered turbines.

The water resources minister, in the latest presentation from his ministry, stated that there had been tremendous progress in the brown and green field hydropower development through public private partnerships.

“We have conclusively concessioned some projects while still developing others through various PPP models itemised as follows: concession of the 40MW Dadinkowa Hydropower Project in Gombe State. We have attained financial closure and the plant is operational, thereby, stabilising the transmission voltage of the North-East of Nigeria.

“Concession of the 30MW Gurara Hydropower Plant in Kaduna State up to financial closure and the plant, which is under rehabilitation, will commence commercial operation in the third quarter of the year 2024.

“Concession of the 40MW Kashimbila Hydropower Plant in Taraba State. The Federal Executive Council approval has been secured, the concession agreement executed and the commencement fee paid by the concessionaire to the special concession account as approved by the Federal Ministry of Finance Budget and National Planning,” Utsev said.

Outlining other projects, the Minister said, “Development of 360MW Gurara Phase II Hydropower Project in Niger State (engineering, procurement and construction contract awarded and FEC approval for the concession of operation and maintenance of the power plant through PPP model secured).

“Development of 136 MW Manya and 182MW Bawaku Hydropower Projects in Taraba and Benue states respectively. This is at the procurement stage and ready to proceed to the Request for Proposal stage.

“Development of 460MW Katsina-Ala Hydropower Project in Benue. This is also at the procurement stage; proceeding to the request for proposal stage/negotiation with the proponent.

“Development of 20MW Farin Ruwa Hydropower Plant Project in Nasarawa State. Advertisement of request for qualification has been placed in the Federal Tenders Journal and national newspapers for value for money to the government.”

Aside from giving the power plants to concessionaires, in a bid to grow the country’s electricity output, the Federal Government had also been making efforts to sell some power plants to raise funds and boost power production.

For instance, on January 24, 2024, it was exclusively reported that the Federal Government, through the Bureau of Public Enterprises, was carrying out transactions for the sale of five power plants under the National Integrated Power Projects for about $1.15 billion.

The report stated that though sources familiar with the development explained that the cost of the plants should exceed $5 billion based on international benchmarks, they revealed that the BPE was planning to sell the facilities at a price that was a little above $1.1 billion.

The acting Director-General, BPE, Ignatius Ayewoh, had confirmed to our correspondent in a brief telephone conversation that “the transaction is ongoing,” adding that “it is not concluded.”

The BPE boss did not disclose the cost for the five plants, as he stated that he was in a meeting and would not be able to give additional details at the time.

However, impeccable sources at the bureau had named the five power plants to include the 434 megawatts gas-fired Geregu II power plant, located in Kogi; 451MW Omotosho II plant in Ondo; and 750MW Olorunshogo II plant in Ogun State.

Others include the 563MW Odukpami power plant in Calabar, Cross River State; and the 451MW Benin-Ihovbor plant in Edo State.

It was gathered that the Omotosho plant, which has four power-generating turbines, would be sold at about $85m; while the Olorunsogo NIPP with also four turbines would cost $170 million.

Energy

530 CNG buses ready for deployment in Lagos, Oyo, Kwara, FCT, others

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The process for nationwide deployment of Compressed Natural Gas (CNG) vehicles has commenced. Not less than 530 buses are to be deployed by the end of the month in six pioneering states.

These are Oyo, Lagos, Kwara, Kogi, Kaduna, Nasarawa, and the Federal Capital Territory (FCT) Abuja.

Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI) Michael Oluwagbemi stated this yesterday.

It was during the event signaling the commencement of 15-day-long activities ahead of the rollout.

He said the distribution is on a demand-led basis.  He added that efforts would be accelerated at the conversion of diesel and petrol-fuel engines across the country.

According to Oluwagbemi, President Tinubu has directed the PCNGI to ensure the conversion of at least 10 per cent of the total number of vehicles in the country in the first year of the rollout of the initiative.

 

The programme began yesterday in the Southwest with the Presidential (virtual) commissioning of the critical gas supply projects.

 

Today, the team will inspect the Jets and Mikano Factory along with representatives of the Ministry of Labour and workers unions.

Southsouth and Southeast stakeholders engagement will be held tomorrow in Port Harcourt, the Rivers State capital.

Affiliate conversion and refuelling at the Femadec Site as well as an inspection tour of the Total Energies support station are planned.

Another six-day inspection tour of the Kojo Factory at the Enugu-Onitsha Site will begin on May 24 to receive the first set of assembled tricycles, buses, cylinders and kits ahead of the official launch.

The Luojia Assembly Plant for CNG tricycles on the Lagos-Ibadan Expressway will be inaugurated on May 30.

“These programmes are a fulfilment of President Bola Ahmed Tinubu’s promise to drive Nigeria’s energy transition in the transportation sector leveraging CNG and enabling economic growth,” Oluwagbemi stated.

He noted the President’s political will to ensure the full utilisation of natural gas which hitherto was being flared.

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Oil block bid rounds: NUPRC assures interested buyers of conducive environment

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The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, has assured prospective investors interested in participating in the country’s oil rounds of a conducive environment to conduct their business.

Komolafe made this assertion at the Miami International Roadshow for the 2024 licensing round, organised by the NUPRC in partnership with the Petroleum Technology Association of Nigeria (PETAN) and Zetse Advisory & Consulting.

Speaking, Komolafe declared that the marketing of oil blocks has garnered staunch backing from the highest echelons of the government.

Engr. Komolafe, who underscored the role of presidential support in attracting investors to the Nation’s oil sector, said the Licensing Round is part of concerted efforts by Nigerian authorities to revitalise the country’s oil and gas industry and foster increased investment.

According to him, the backing signals a concerted effort to provide a conducive environment for both domestic and foreign investors seeking opportunities in Nigeria’s energy market.

The Miami International Roadshow serves as a crucial platform for showcasing Nigeria’s vast potential in the petroleum sector and fostering partnerships with international stakeholders. By collaborating with stakeholders such as PETAN and Zetse Advisory & Consulting, Komolafe further affirms Nigeria’s commitment to fostering a transparent and investor friendly regulatory environment in its pursuit of energy sector excellence.

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Tinubu commissions OB3, ANOH, AHL gas projects

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…Reiterates commitment to utilise Gas for economic growth, prosperity

President Bola Ahmed Tinubu on Tuesday virtually commissioned three gas projects in Imo and Delta state.

The projects were executed by NNPC Limited and its partners in Ohaji-Egbema, in Imo State and Kwale, in Delta States, on Wednesday.

The three projects commissioned include the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.

Speaking, President Tinubu reiterated the commitment of his administration to utilize Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

“It is pleasing that approximately, 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25 percent incremental growth in gas supply. In practical terms, this translates into more gas to the Power Sector, Gas-Based Industries, and other critical segments of the economy,” the President added.

The President said from the onset, his administration was clear of its intention to leverage on the virtually unlimited capacity of gas to deepen domestic gas utilisation, increase national power generation capacity, revitalise industries, and create multiple job opportunities for economic growth.

He said aside the Presidential Compressed Natural Gas (CNG) Initiative which is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivising gas development through Presidential Executive Orders.

While congratulating the projects partners (NNPC Limited, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy for the successful implementation of the three projects, Tinubu particularly charged the NNPC Limited to, as the national energy company of choice, sustain its relentless efforts and record more successes in the energy sector for the benefit of all Nigerians.

He described the commissioning as a highly significant milestone for Nigeria as it demonstrates his administration’s efforts to accelerate the development of critical gas infrastructure geared at enhancing the supply of energy to boost industrial growth and create employment opportunities.

He said the projects were fully in line with the Federal Government’s Decade of Gas initiative, and his administration’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialisation.

“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realisation of gas-fueled prosperity in our country. Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business,” the President noted.

Earlier in his address, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo highlighted the efforts of his ministry to continue to champion the utilisation of gas as a transition fuel as Nigeria moves towards achieving clean energy efficiency and security by 2060.

Ekpo commended the President for his leadership and support towards the success of the three projects.

He said: “Mr. President, the decision to eliminate fuel subsidies at the start of your administration has compelled increased spending in upstream and midstream gas development, and the use of gas as an appropriate, more cost-effective, and cleaner alternative to diesel and gasoline. Furthermore, in keeping with the Paris Climate Change agreement, this measure solidifies the use of gas as our transition fuel as we move the Nation towards achieving green energy sufficiency by 2060.”

The Minister appreciated  President Tinubu, saying his “inspiring leadership has been the driving force behind our progress towards a future full of opportunity and promise.”

He described the AHL Gas Processing Plant 2 (GPP – 2) and ANOH Gas Processing Company (AGPC) Plant, which were commissioned, as important facets of the Decade of Gas initiative, and a reflection of the NNPC Ltd. and its Joint Venture partners’ efforts.

“In addition to producing over 160,000 metric tonnes of propane and 100,000 metric tonnes of butane annually, this plant promotes rapid industrialisation and reduces reliance on LPG import,” he said.

In his remarks, the GCEO NNPC, Mr. Mele Kyari described the commissioning as a demonstration of Mr. President’s commitment and support to grow the domestic utilisation of natural gas for power generation, as feedstock for gas-based industries and overall rapid industrialisation of Nigeria on the back of the enormous gas resources in the country.

Kyari assured that as part of its mandate, NNPC Ltd remains committed to maintaining energy security by executing more strategic gas projects for the benefit of Nigeria.

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