Scheduled to be completed by 2021, the project is expected to meet the country’s growing electricity demand.
Power produced from the 540MW facility will be sold to Nigeria Bulk Electricity Trading (NBET), under a long-term power purchase agreement signed with the project developers.
In relation to the project, Mobil Producing Nigeria (MPN), which initiated the QIPP project in partnership with the NNPC, has agreed to transfer of its ownership of the project to QIPPL joint venture. MPN is a unit of ExxonMobil.
However, MPN has retained a 20-year gas supply agreement with the new investors to deliver nearly 400 million standard cubic feet per day (mmscuf) of gas to the plant from its offshore oil production facility.
Exxon Mobil public and government affairs general manager Paul Arinze was quoted by The Eagle Online as saying: “The transfer includes the ownership and financing of a gas-fired power plant and a 58km transmission line.
“The NNPC/MPN joint venture will retain its responsibility to fund and build the 53km offshore pipeline and platform modifications needed to supply gas to the power plant.”
NBET managing director Dr Marilyn Amobi was quoted by The Nation Newspaper as saying that the project partners are planning to commence construction after reaching a financial closure and accelerate work at the plant to commission it within 18 to 24 months.
Black Rhino chairman and Emir of Kano, Muhammadu Sanusi II, said: “Within the next months, we will achieve a financial closure to bring in about $1.2bn worth of direct investment into Nigeria.
“QIPP will utilize Nigeria’s gas resources to increase our electricity generation capacity and reduce the cost of power.”
Image: Nigeria intends to meet its growing power demands. Photo: courtesy of tawatchai/ FreeDigitalPhotos.net.
