Some stakeholders in the oil and gas industry have hailed President Bola Tinubu for flagging off the construction of the first phase of the 1,350MWs Gwagwalada Independent Power Plant (GIPP) in Abuja.
While the efforts of the Nigerian National Petroleum Company Limited have been lauded for this magnificent project by stakeholders, they are however skeptical about where the gas to feed the plant is going to come from, given the fact many of such plants littered the country and they are not functional because they are not getting adequate gas supply to work optimally.
There is no doubt they said, if the project is properly implemented with necessary compliments it would boost the nation’s economic aspirations and industrial capacity but they still not sure of where the much needed gas would come from to get project rolling and make it another while elephant project.
Even though the Mele Kyari, GECO of NNPCL said the company said the fuel requirements for the project would be met under a long-term Gas Sales, Purchase, and Aggregation Agreement with Shell Petroleum Development Company Joint Venture (SPDC JV). There are some stakeholders who are quick to point out that,was the same arrangement not entered into in respect of those other power plants and yet they still suffer gas shortage.
According to them, there are up to 6000mw capacity from plants constructed by international oil companies ( IOCs) that are locked down and unable to be generated, sadly, this is not only due to lack of gas but also because of inadequacy of the grid system and lack of buyers.
“Geregu, Sapele, Omotosho, Gbarain, Omuku, Paras and Alaoji, some of these plants are buried in the midst of gas fields, yet they are not getting enough gas to operate and now we are now talking about Abuja Power plant. The same IOCs mentioned also operate these gas fields.”
I am not saying the project is not good, but, where the gas is going to come from is the issue that bothers me at the moment when investors are turning their back against the country,” an official of one of company stated.
He said the Independent Power Plant (IPP) Okpai Phase II project was initiated by the Nigerian Agip Oil Company (NAOC) to increase the plant’s existing power generating capacity of 480mw by a further 450mw to provide a total 930mw output into the Nigerian power supply grid. But what is happening to the plants today? It still cannot generate beyond 480mw.
The nation has 13,000mw installed generating capacity, with a capacity for transmission of 7000mw, but currently distributes only 3000mw.
Speaking at the official groundbreaking event, the President said part of his campaign promises was to use all available energy sources to increase power generation beyond the current installed capacity of 12,000mw.
He explained that the Joint Venture (JV) will have General Electric (GE), China Machinery and Engineering Corporation (CMEC), and the Nigerian National Petroleum Company Limited (NNPC) on board.
Describing it as another important piece of national infrastructure, the president noted that the ground-breaking was highly significant to the nation, as it marked the first bold step in his administration’s effort to establish a strong and virile energy sector and deliver uninterrupted power to all Nigerians.
According to him, Nigeria cannot become a productive and industrialised economy, tackle poverty or create thousands of high-paying manufacturing jobs if it cannot generate, transmit and distribute reliable electricity.
“.To accelerate our economic growth, we must remove every obstacle slowing our progress.
“That this project is taking off so early in the lifetime of this administration should serve as notice to the residents of Abuja and, indeed, to all Nigerians of our determination to bring positive change to this nation,” the president said.
Also, he said his administration would continue to vigorously pursue the implementation of other low-carbon energy solutions, such as solar, hydro, wind, thermal, and biofuels, for both on-grid and off-grid power systems.
“We will focus on rural electrification to improve the standard of living of people in rural communities and re-energise their socio-economic opportunities.
“Therefore, the investment of NNPC Ltd alongside its partners in the installation of additional 350mw will surely increase the energy supply level to Nigerian homes and businesses, catalyse economic empowerment, and, ultimately, renew the hope of our energetic and creative citizens,” he added.
Earlier in his remarks, the Group Chief Executive Officer of the NNPCL, Mele Kyari, said the project is a giant step towards achieving the Company’s Gas & Power mandate to add 5GW into the National Power generation by 2024.
Currently, he said NNPC and partners are delivering about 80OMW to the national grid from Afam VI and Okpai Phase 1 thermal power plants with a combined installed capacity of 1,0OMW.
” We have also completed Okpai Phase 2 project that will add up to 320MW of power to the national grid and progressing with other power plant projects across the country including those along the AKK pipeline route ,” he added.
He explained that the Gwagwalada IPP is among the NNPC flagship projects along the Ajaokuta-Kaduna-Kano corridor. Adding that this is part of the 3,600 cumulative power capacity, which includes Kaduna IPP (900MW) and Kano IPP (1,350MW).
“We know that expanding access to energy will change the game. It will create a better investment climate and promote balanced economic growth, a win-win situation for the Nation and for NNPC as a commercial energy company,” he said.
The Group Chief Executive Officer (GCEO) of NNPC Limited, Mele Kyari, however,shared a detailed overview of the Gwagwalada Independent Power Project and its potential to reshape Nigeria’s energy landscape. “The Gwagwalada Independent Power Project (GIPP) is a 1,350MW Combined Cycle Power Plant with auxiliaries and Balance of Plant to be situated on 54.7 hectares of land already acquired at Gwagwalada,” Kyari explained.
Kyari emphasized that the fuel requirements for the project would be met under a long-term Gas Sales, Purchase, and Aggregation Agreement with Shell Petroleum Development Company Joint Venture (SPDC JV).
“The GIPP project consists of three power train blocks of 450MW each,” Kyari continued, describing the impressive infrastructure that would power the plant.
Each block he said, featured General Electric (GE) GT13E2 gas turbine generators, heat recovery steam generators (HRSG), steam turbine electric generators, direct air-cooling condensers, and a black start diesel generator.
The GCEO observed that the projected output was nothing short of remarkable. “On completion, the GIPP Project will generate an average of 10.3 million Megawatt-hours (MWh) of electricity per year, for sale to Nigerian Bulk Electricity Trading Plc (NBET),” Kyari announced. The generated power would be made available through a mix of Power Purchase Agreements (PPA) with NBET and direct sales to major off-takers, providing a stable and sustainable energy supply to homes and businesses.
