Electricity: How NNPC plans to generate 4,000 MW in 10 years – Official

Power Lines [Photo: energymixreport.com]
Power Lines used to illustrate the story [Photo: energymixreport.com]

The Nigerian National Petroleum Corporation, NNPC on Monday disclosed it plans to generate about 4,000 megawatts of electricity in the next 10 years to boost the supply in the country.

Data from the Transmission Company of Nigeria, TCN, on the current total power available to the 11 distribution companies as at February 28 stood at about 3868.39 MW.

But, NNPC’s Chief Operating Officer, COO, in charge of Gas and Power, Saidu Mohammed, said at the 2017 retreat of his autonomous business unit, ABU (Gas and Power), in Kaduna, that this the corporation hopes to realise its agenda to generate additional 4,000MW through building of independent power plants, IPPs at various locations in the country.

Mr. Mohammed said the power plants would be built in the next three to 10 years by the Incorporated Joint Venture Companies that would involve NNPC, International Power Companies and other Nigerian investors to be structured after the Nigerian Liquefied Natural Gas, NLNG, business model.

“Power generation is a big business. As at today, NNPC has interest in two power plants located in Okpai, Delta State and Afam in Rivers State, which were built by our Joint Ventures with Nigerian Agip Oil Company (NAOC), and Shell Petroleum Development Company (SPDC) respectively,” he said.

He said the two power plants, which collectively generate about 1,000 MW of electricity, were the most reliable and cheapest sources of electricity to the national grid in the country today.

Mr. Mohammed said plans were already underway to commence Okpai Phase 2 Power plant, apart from the other JV power plants, like Obite & Agura, would also be progressed soon to boost power generation in the country.

The Autonomous Business Unit, ABU, gas and power initiative, Mr. Mohammed explained, would require about $15 billion investment to realise.

He said discussions are ongoing with prospective investors to help address gas deficit by building on the already existing gas infrastructure in the country.

“The new thinking involved the extension of the NNPC’s major gas pipeline infrastructure into a robust network to connect various parts of the country. The implementation of the Ajaokuta to Abuja-Kaduna-Kano (AKK) extension has progressed.

“The main base-loads to justify such infrastructure are power plants that would consume the gas and for that, we are planning to build about 2,000 to 3,100 megawatts plants, combined, in these three cities.

“The partnership will involve players who will bring in their various capacities as operators, builders of power plants and as investors. NNPC will also bring its strength of being a dominant player in the Nigerian gas value chain,” Mr. Mohammed said.

He said the NNPC as an interested party in the gas value chain had developed capabilities in processing, transportation and marketing of gas for export and domestic utilisation.

With the nation’s gas resources, Mr. Mohammed said, there was huge potentials to change the landscape of the Nigerian economy for the better.

“If you generate enough power, the multiplier effect will revive most of the moribund industries across the country. NNPC intends to capture 50 per cent of the gas market in Nigeria by growing the Nigerian Gas Marketing Company, NGMC, from the current 500 million standard cubic feet of gas per day to about 3 to 4 billion standard cubic feet per day in the next 10 years,” he said.

In line with the Nigerian gas master plan, the official said the NNPC would be producing gas with its IJV partners, along with other interested Nigerian investors, to build treatment plants to achieve the deadline.

“We are going to unbundle the upstream by delineating the midstream so as to allow other players operate, while NNPC as the operator of the pipeline network will continue to deliver gas to the downstream sector and ultimate consumers,” he stated.

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