Report on Interest

US approves $1.16m grant for 1,350MW Abuja IPP

By News Desk

As part of efforts to boost availability of power supply for Nigeria, the United State Government has approved $1.16 million grant to the country’s National Petroleum Corporation (NNPC) to facilitate the establishment of a 1,350 Megawatts (MW) Independent Power Plant in Abuja.

The $1.16 million United States Trade and Development Agency (USTDA) grant, according to the country’s Ambassador to Nigeria, Mary Beth Leonard, was part of America’s intervention to reduce the power deficit, create jobs and support the expansion of gas infrastructure in Nigeria.

At the signing ceremony for the grant held on sidelines of the ongoing Nigeria International Petroleum Summit (N.I.P.S) in Abuja on Tuesday, Director of USTDA, Tom Hardy, explained that the grant of $1.16 million to NNPC was an American power solution geared towards boosting the nation’s economy.

NNPC Group Managing Director, Mele Kyari, disclosed that the fund would be deployed by the Corporation for provision of technical, economic and financial analyses necessary for development of the combined cycle, natural gas-fired power plant to be sited in Gwagwalada, a satellite town of Abuja.

Kyari stressed that the power plant, when completed, would deliver power to the national grid for onward transmission to Nigerians to facilitate industrial growth and reduce poverty in the country.

“We all know that there must be a framework. We all know that there are so many delayed projects in this Industry that have to do with delivering gas to the domestic market for so many reasons. One of them is inability to secure financing and other fiscal issues that we are all familiar with and they have to be resolved. What we have to do is to create infrastructure that will deliver gas to the domestic market and we are already doing that,” he assured.

He informed that NNPC under his watch was committed to providing necessary infrastructure that would reduce power deficit and gas flaring that had continued to impacts negatively on the environment.

The NNPC helmsman stated that the corporation had already delivered the Oben-Obrikun and Obiafu (OB3) gas pipelines, expanded the Escravos-Lagos Pipeline System 2 (ELPS 2) with her partners and about constructing the Ajaokuta-Kaduna-Kano (AKK) pipeline which would deliver gas from the OB3 line to Kano.

He added that along same corridor, NNPC’s plan was to build three independent power plants in Abuja, Kaduna and Kano states, stressing that the strategy would assist the corporation to unbound power into the grid which ensures stable power supply.

Kyari said the construction of the AKK pipeline would lead to the establishment of industries along the route of the pipeline all the way to Kano, noting that the spin-off effect would be prosperity for the people.

“We know that gas is the cleanest form of energy. We also know that we are flaring some of the gas which we are putting up strategies to stop. By stopping gas flaring, we create wealth, we create prosperity and we have to deliver power to the country. We also know that the focus of the Federal Government is to deliver power to the people as quickly as possible and also deliver gas to our domestic market,” Kyari submitted.

Managing Director of General Electric (GE) Gas Power System in Nigeria, Mohammed Mijindadi, expressed the readiness of GE to deliver on her mandate.

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