By Adewole Kehinde
On March 8, 2022, the Nigerian National Petroleum Company Limited (NNPCL) expressed interest in power plant acquisitions to help boost power generation and supply in the country.
The Group Chief Executive Officer of NNPC Limited, Mallam Mele Kolo Kyari, disclosed this when he led the top management team of the company on a courtesy visit to the Bureau of Public Enterprises (BPE) in Abuja.
Kyari said as an oil company and enabler organization, NNPCL was determined to boost power generation and supply to Nigerian homes through increased investment; hence, it had signed a contract with China Machinery Engineering Company (CME) and General Electric (GE) to provide 50MW of electricity to Maiduguri, Borno State.
According to him, the management of NNPCL was determined to run the organization efficiently and profitably for the benefit of the shareholders; hence, it plans to engage in activities that would generate funds, noting, “NNPCL is a partner of choice.”
He revealed that the organization was ready to collaborate with the BPE after the audit of some of its assets for the sale and divestment of those assets. It is no longer news that Nigeria is endowed with large oil, gas, hydroelectric, and solar resources and has the potential to generate 12,522 MW of electric power from existing plants. However, it is only able to dispatch around 4,000 MW, which is insufficient for a country of over 200 million people.
To demonstrate this commitment to transforming Nigeria’s power sector, the NNPC Limited, spearheaded by Kyari, entered into a turnkey Engineering, procurement, and Construction (EPC) contract with China Machinery Engineering Corporation (CMEC) to construct the Gwagwalada Independent Power Plant project.
The project, which was flagged off on Friday by President Bola Tinubu, has been described as a game-changer in Nigeria’s power sector.
The Nigerian National Petroleum Company Limited (NNPCL) says the Gwagwalada Independent Power Plant (GIPP) project is a giant step toward achieving its gas and power mandate to add five Gigawatts to national power generation by 2024.
The groundbreaking was performed by President Bola Tinubu in the company of other top government dignitaries.
The gas plant is a 1,350MW Combined Cycle Power Plant with auxiliaries and a Balance of Plant to be situated on 547 hectares of land already acquired at Gwagwalada, Federal Capital Territory (FCT), Abuja.
The Gwagwalada Independent Power Plant was necessitated by the need to deliver gas toward additional power generation capacity in Nigeria.
The gas supply to the plant shall be through the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, which is currently in its advanced stage of construction.
On completion, the GIPP Project will generate an average of 10.3 million megawatt-hours (MWh) of electricity per year for sale to the Nigerian Bulk Electricity Trading Plc (NBET).
The GCEO of NNPC Limited, Kyari, said the 350MW project was the first phase of the planned capacity of the 1,350MW Gwagwalada Independent Power Plant.
According to Mele Kyari, Nigeria is endowed with significant natural gas resources of over 209TCF of proven gas reserves and a potential reserve of over 600TCF.
He said that as a commercial enterprise, NNPC saw the project as an opportunity to monetize Nigeria’s abundant natural gas resources by expanding access to energy to support economic growth, industrialization, and job creation nationwide.
To achieve this national aspiration, he said, the NNPC Limited had invested heavily in domestic gas footprint expansion projects through the delivery of the Trans-Nigeria Pipeline Project.
This, he said, included the Escravos to Lagos Pipeline System (ELPS and ELPS Il), the Obiafu-Obrikom-Oben (0B3) gas pipeline, and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline.
Kyari further said that currently NNPC and partners are delivering about 800MW to the national grid from the Afam VI and Okpai Phase One thermal power plants, with a combined installed capacity of 1,100MW.
He said that the company has also completed Okpai Phase Two, which will add up to 320MW of power to the national grid, and is progressing with other power plant projects across the country, including those along the AKK pipeline route.
Kyari said that the Gwagwalada IPP is among the NNPC’s flagship power projects along the AKK corridor. This is part of the 3,600MW cumulative power capacity, which includes Kaduna IPP (900MW) and Kano IPP (1,350MW).
He said the project would be delivered in collaboration with General Electric as the Original Equipment Manufacturer and China Machinery and Engineering Corporation as the Engineering, procurement, and Construction (EPC) Contractor.
He said just as NNPC Limited had recently inaugurated the 50MW Maiduguri Emergency Power Plant, it would continue to replicate similar viable business opportunities across the Nation to ensure energy affordability.
During the groundbreaking ceremony, Kyari assured that expanding access to energy would change the game, 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 also acknowledged the progressive policy direction of Tinubu’s administration to renew hope and reposition the Nigerian economy.
He was quoted as saying, “The esteemed presence of Your Excellency at this event is a demonstration of your commitment and support to improve the nation’s power generation capacity to spur economic growth for our country, and for this, we are indeed grateful.”
The NNPC Ltd. is taking a critical step towards realizing its purpose of making energy available and affordable in a sustainable manner by focusing on diversifying energy sources and increasing power-producing capacity. Kudos to the entire management team of NNPC Limited under the indefatigable Mal. Mele Kyari.
Adewole Kehinde is an energy expert based in Abuja and can be reached at 08166240846; kennyadewole@gmail.com
