The Federal Government and the
developers of the 540-megawatts Qua Iboe Power Plant signed a Power
Purchase Agreement for the development of the $1.1bn electricity
generation station on Thursday.....
The Dangote Group, Nigerian National
Petroleum Corporation and Black Rhino Group, an African energy
infrastructure company, signed the PPA with the Nigerian Bulk
Electricity Trading Plc, an agency of the Federal Government, in a
ceremony that was presided over by the Minister of Power, Works and
Housing, Babatunde Fashola, in Abuja.
The 540MW power plant, located in Akwa
Ibom State, is being jointly developed by the three firms following the
purchase of the rights from Mobil Producing Nigeria Unlimited, a joint
venture between ExxonMobil subsidiary, Mobil Producing Nigeria, and the
NNPC.
The developers stated that the plant
would be one of the lowest cost thermal power plants in Nigeria due to
its efficient combined cycle design and competitive gas price.
The plant, according to them, will
receive gas from Mobil Producing Nigeria under a 20-year Gas Sales
Agreement via a new 400 million standard cubic feet per day undersea gas
pipeline from MPN’s existing offshore production facilities.
They also noted that the power plant
would unlock investment in transmission infrastructure, including a new
58-kilometre transmission line to be built by the QIPP.
The Chairman, Black Rhino Group and Emir
of Kano, Muhammad Sanusi II, said the project would have real
socio-economic impact on Nigeria.
“The Qua Iboe Power Plant will utilise
Nigeria’s gas resources to increase our electricity generation capacity
and reduce the cost of power. The plant is an example of how the Federal
Government and private investors can work together to develop
infrastructure that has a real socio-economic impact on our country,” he
said.
The Qua Iboe Power Plant is the most
advanced project jointly developed by the Black Rhino Group and Dangote
Group since the firms announced their partnership to invest in African
energy projects.
The Chief Executive Officer, Dangote
Group, Aliko Dangote, said, “The Black Rhino Group and Dangote Group
partnered to develop transformational projects such as the Qua Iboe
Power Plant. By closing the gap between Nigeria’s generation capacity
and the energy required to underpin economic growth, we are supporting
Nigeria’s future industrial growth.”
It was gathered that the power plant was
benefitting from a World Bank-approved $150m Partial Risk Guarantee,
and Environmental Impact Assessment and Resettlement Action Plan
approved by the Federal Ministry of Environment.
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