By Clement Nwoji
Abuja — The Federal Government, represented by the Nigeria Bulk Electricity Trader (NBET), has signed a Power Purchase Agreement (PPA) with Qua lboe Power Plant Limited (QIPP) to build a 540MW gas-fired power facility worth $1.1billion in Akwa Ibom State.

Furthermore, the QIPP, NBET, Nigerian National Petroleum Corporation (NNPC) and the Ministry of Finance struck a Put/Call Option Agreement (PCOA). The Minister of Power, Works and Housing, Babatunde Fashola, who presided over the event yesterday in Abuja, explained that the PCOA details the government's obligations supporting QIPP's PPA.He noted that the agreement marks another effort to increase power supply nationwide.

QIPP was jointly developed by African energy infrastructure company, Black Rhino Group, Dangote Group and the NNPC, following the purchase of the rights to develop the project from Mobil Producing Nigeria Unlimited, a joint venture between ExxonMobil subsidiary, Mobil Producing Nigeria and the national oil company.

Fashola noted that QlPP would be one of the lowest cost thermal power plants in the country due to its efficient design and competitive gas price. The project is to get gas from Mobil Producing Nigeria under a 20-year Gas Sales Agreement via a new 400mmscfd undersea gas pipeline from the oil firm's existing offshore production facilities.

The power plant also unlocks investment in transmission infrastructure, including a new 58 kilometres transmission line to be built by QIPP.Black Rhino Chairman, Emir Muhammadu Sanusi II, said: "QIPP will utilise Nigeria's gas resources to increase our electricity generation capacity and reduce the cost of power. QIPP is an example of how the Federal Government and private investors can work together to develop infrastructure that has a real socio-economic impact in our country."

The Chief Executive Officer, Brian Harlihy, said the project would further catalyse investments in infrastructure nationwide and support government in building a sustainable power sector that works for all Nigerians.

The President of Dangote Group, Aliko Dangote, said: "By closing the gap between Nigeria's generation capacity and the energy required to underpin economic growth, we are supporting Nigeria's future industrial growth."

NNPC's Group Managing Director, Dr. Maikanti Baru, pledged the joint venture would work to support the plant in line with government's initiatives for power sector development in Nigeria.

QlPP benefits from a World Bank-approved $150 million Partial Risk Guarantee, and an Environmental Impact Assessment and Resettlement Action Plan approved by the Federal Ministry of Environment.

The project will continue with the advancement of its project finance programme and seek to reach financial close in second half of 2018. QIPP is expected to commence construction shortly thereafter and commercial operations in second half of 2021.

http://allafrica.com/stories/201710270064.html


When in doubt, give it to Fashola.



Kudos..

This is what I have always advocated. More power plants in the SS to minimize pipeline length from gas source and all its associated challenges like vandalism maintenance.

The larger they come the better. We need more large power plant like this.

Two power plants in Akwa ibom that's cool. This power plant plus the phase 2 upgrades to Ibom power plant should get the state closer to its industrialization goals.

The power plant also unlocks investment in transmission infrastructure, including a new 58 kilometres transmission line to be built by QIPP

This great development seeing how a lot of power lost in transmission. Fashola has been doing well for the state. This deal and other agreements to power local governments.

Front Page: lalasticlala

It is also worthy of note that exon Mobil will be taking over ibom Power plant,
Hopefully they gonna also expand it.

Signing of MOU isn't the problem. The problem is will the project be actualized or will they commission it on paper as usual?

arinzeejikonye:
It is also worthy of note that exon Mobil will be taking over ibom Power plant,
Hopefully they gonna also expand it.

They managing it now? No need to hope the state already has plans on expanding that one.

Deomelo you didn't post whole story. Key pices of info left out. This probably why they feel it's paper project. If they dot see time frame.

The project will continue with the advancement of its project finance programme and seek to reach financial close in second half of 2018. QIPP is expected to commence construction shortly thereafter and commercial operations in second half of 2021.

Front Page: lalasticlala

Spylord48:
Signing of MOU isn't the problem. The problem is will the project be actualized or will they commission it on paper as usual?

This is not an MOU and the folk involved are serious players.

QIPP was jointly developed by African energy infrastructure company, Black Rhino Group, Dangote Group and the NNPC

deomelo:




This is not an MOU and the folk involved are serious players.

Na today? As far as it involves government don't put your hopes high because of bureaucracy. Some people somewhere who are gaining from the 24hrs darkness everywhere will fight tooth and nail to frustrate the plan.
Most people will only believe when the project is 99.9% completed and working too

[quote author=Blue3k post=61851835]

They managing it now? No need to hope the state already has plans on expanding that one.

That's nice,
Power generation is no bean cake.

Fashola noted that QlPP would be one of the lowest cost thermal power plants in the country due to its efficient design and competitive gas price.

This is interesting considering the $1.1 billion bill for 540 MW. Gas-powered plants are one of the cheapest to build (considerably cheaper than coal plants) and the median costs for most gas plants in developing countries is about $1000 per KW. So you'd expect a bill of between $500m to $600m for this particular plant. But in this country where every infrastructural project seems to be absurdly inflated, it's no surprise it's costing double that. And it's apparently one of the cheapest.

You look at the cost of the Ikoyi link bridge or Kwankwaso's Kano flyover, or the projected costs for the 2nd Niger Bridge, or the projected costs for the interstate rail projects per km (or even Lagos' rail project and Amaechi and Duke's monorails) compared to similar projects in countries like Tanzania, Ethiopia etc and something is terribly wrong with the process in awarding these contracts. So many rotten scumbags feeding fat off the country.

The problem with investors and their inability to invest in the power sectors remains clear and well defined regulatory path and ability to benefit from investment, it's always been a murky and negative path for power investments.


What Fashola is doing here is clearing that path for the parties involved from regulatory to clear definition per who is going to handle what and who is going to supply raw materials like gas and so on.


This is the kind of clear and vision driven formula need in the power sector and I see other power investors stepping in based on the same formula and pathways.

Siemens too just did road show advert for their Mobile embedded units of ipp,
Sgt A45,for 44megawatts,
Light up lagos about to key in, with many captains of industry in the private sector.

Multidimensional turbines

Obi1kenobi:


This is interesting considering the $1.1 billion bill for 540 MW. Gas-powered plants are one of the cheapest to build (considerably cheaper than coal plants) and the median costs for most gas plants in developing countries is about $1000 per KW. So you'd expect a bill of between $500m to $600m for this particular plant. But in this country where every infrastructural project seems to be absurdly inflated, it's no surprise it's costing double that. And it's apparently one of the cheapest.

You look at the cost of the Ikoyi link bridge or Kwankwaso's Kano flyover, or the projected costs for the 2nd Niger Bridge, or the projected costs for the interstate rail projects per km (or even Lagos' rail project and Amaechi and Duke's monorails) compared to similar projects in countries like Tanzania, Ethiopia etc and something is terribly wrong with the process in awarding these contracts. So many rotten scumbags feeding fat off the country.

That cost the LASG N29 billion which they have or almost recouped from toll fees.


You can not reach any kind of conclusion per the cost of projects without sensible and critical analysis concerning every cost aspect of the project involved from cost of land to cost of equipment and machinery, importation and transportation of machinery and equipment that we obviously doesn't manufacture, cost of local and imported labor and if I might add, there is still the cost of added 58 kilometres transmission line that you obviously overlooked.


Bring forth your documented cost analysis per this project and your so called similar projects in the same business and cost environment for us to analyze and compare, until you are able to do that, you are just spewing breeze, ignorance and baseless assertions.

Obi1kenobi:


This is interesting considering the $1.1 billion bill for 540 MW. Gas-powered plants are one of the cheapest to build (considerably cheaper than coal plants) and the median costs for most gas plants in developing countries is about $1000 per KW. So you'd expect a bill of between $500m to $600m for this particular plant. But in this country where every infrastructural project seems to be absurdly inflated, it's no surprise it's costing double that. And it's apparently one of the cheapest.

You look at the cost of the Ikoyi link bridge or Kwankwaso's Kano flyover, or the projected costs for the 2nd Niger Bridge, or the projected costs for the interstate rail projects per km (or even Lagos' rail project and Amaechi and Duke's monorails) compared to similar projects in countries like Tanzania, Ethiopia etc and something is terribly wrong with the process in awarding these contracts. So many rotten scumbags feeding fat off the country.

I totally agree with you; $1.1billion for a 540mw gas plant absolutely doesn't add up.

obailala:
I totally agree with you; $1.1billion for a 540mw gas plant absolutely doesn't add up.

Based on what? Are you a power plant engineer or expert or it's the same NL look and comment without facts?

One good thing I commend this project is that it has a defined logistics of its gas to power infrastructure,
But same cannot be said for the newly completed kaduna 215mw plant,

It is lying idle, with no gas to feed the plant,
The other time fashola opted for diesel against gas for the plant, guess the unavailability of ajaokuta - Abuja-kaduna-kano gas pipeline infrastructure is the major cause, presently no one can give a certain clarification on the position of the East-West gas pipeline project too.

arinzeejikonye:
One good thing I commend this project is that it has a defined logistics of its gas to power infrastructure,
But same cannot be said for the newly completed kaduna 215mw plant,

It is lying idle, with no gas to feed the plant,
The other time fashola opted for diesel against gas for the plant, guess the unavailability of ajaokuta - Abuja-kaduna-kano gas pipeline infrastructure is the major cause, presently no one can give a certain clarification on the position of the East-West gas pipeline project too.

This reminds me of sokoto power plant state built. I haven't heard any updates after their test run of the plant. It's sup posed to run on diesel and have ability to run of cheaper fuel sources I remember. The issue was it was more 3 times more expensive than the others in region if it runs off trucked diesel.

deomelo:




That cost the LASG N29 billion which they have or almost recouped from toll fees.


You can not reach any kind of conclusion per the cost of projects without sensible and critical analysis concerning every cost aspect of the project involved from cost of land to cost of equipment and machinery, importation and transportation of machinery and equipment that we obviously doesn't manufacture, cost of local and imported labor and if I might add, there is still the cost of added 58 kilometres transmission line that you obviously overlooked.


Bring forth your documented cost analysis per this project and your so called similar projects in the same business and cost environment for us to analyze and compare, until you are able to do that, you are just spewing breeze, ignorance and baseless assertions.

Thanks for stating the obvious, genius. I certainly wouldn't have figured that one out myself. If you could have taken a deep breath before the typically cantankerous response (probably trying to provoke your hourly staple of tribal e-battles), I was referring to a general trend of inflated project costs for everything from roads to bridges and tunnels, to rail lines and other public infrastructure.

And no, it's a weekend and I have better ways (or rather, more fun ways) to spend my time today than posting "documented cost analysis" and having a tedious back-and-forth. My comment came from the experience of having compared project costs with other African countries before, but I have no time or desire to rehash them. Believe what you want.

arinzeejikonye:
One good thing I commend this project is that it has a defined logistics of its gas to power infrastructure,
But same cannot be said for the newly completed kaduna 215mw plant,

It is lying idle, with no gas to feed the plant,
The other time fashola opted for diesel against gas for the plant, guess the unavailability of ajaokuta - Abuja-kaduna-kano gas pipeline infrastructure is the major cause, presently no one can give a certain clarification on the position of the East-West gas pipeline project too.

The North has some major hydo-electric projects coming on-stream doesn't it? They also have a comparative advantage in utilizing solar and wind power compared to the South. Pipelines are expensive to lay for thousands of miles and I'm not sure why they'd be building gas-powered thermal plants without factoring the logistics of gas supply.

Desyner:
This is what I have always advocated. More power plants in the SS to minimize pipeline length from gas source and all its associated challenges like vandalism maintenance.

Pipeline length from gas source is not the issue if it was people would not invest billions in LNG which more than doubles the price. There are dozens of factors to consider and to somehow make that the most important is strange

I do not see the logic about how this reduces vandalism?

Vandalism again is a multifactorial issue bjut primarily it has to do with PEOPLE and the MOTIVATION for their action chief of which is unemployment which derives partly from poor education and training as well as the politics of the Nigerian question.
Afterall there are pipeline all the way to Ghana.There are pipelines from Russia to Europe longer than Nigeria.
If Nigeria were to industrialize there must be gas pipelines across the whole country even if not for power plant for cooking or are we to cook with kerosene for ever while Europeans cook comfortably with Nigerian gas? Even countries that have no gas AT ALL and use NIGERIAN GAS have extensive pipelines.

It is not pipeline length that is the issue. Gas pipes are very very deep compare to oil or petrol and are often vandalized at source or
pumping stations
We need to always look at the big picture.

Even if you have power plants in Akwa Ibow what about the electricity generated will it not enter a transmission network.Could that not be vandalized if the motivation to do that is there ? Why is that motivation so high in Nigeria and not in Qatar or Algeria?

[s]

Obi1kenobi:


Thanks for stating the obvious, genius. I certainly wouldn't have figured that one out myself. If you could have taken a deep breath before the typically cantankerous response (probably trying to provoke your hourly staple of tribal e-battles), I was referring to a general trend of inflated project costs for everything from roads to bridges and tunnels, to rail lines and other public infrastructure.

And no, it's a weekend and I have better ways (or rather, more fun ways) to spend my time today than posting "documented cost analysis" and having a tedious back-and-forth. My comment came from the experience of having compared project costs with other African countries before, but I have no time or desire to rehash them. Believe what you want.

[/s]


Stop compounding your ignorant and baseless silly assertions with more ignorant and equally silly assertions.

If you are going to dispute cost based on similar endeavors in other environments, common sense dictates that you show facts, figures and relating factors to support your claims with and without these facts, you are just spewing ignorant trash.


This is the problem with you Igbos, you hate and criticize without facts, you just spew trash especially over what's not sited in your village.


Show facts to back up your views with or just keep quiet. Do you really we are all ignorant like your co-hateful and ignorant Igbos clapping over your silly and pointless jargon.


Oh yes, it's the weekend to make baseless assertions, but not the weekend to back up your assertions with facts.


How funny can you people be sometimes.

deomelo:




This is not an MOU and the folk involved are serious players.

next two years I will dig this thread up.

Bizibi:
next two years I will dig this thread up.

Make it 3 the project supposed to be ready 2021.

Obi1kenobi:


The North has some major hydo-electric projects coming on-stream doesn't it? They also have a comparative advantage in utilizing solar and wind power compared to the South. Pipelines are expensive to lay for thousands of miles and I'm not sure why they'd be building gas-powered thermal plants without factoring the logistics of gas supply.

That is the lacuna, right there,
The both the power and gas supply infrastructure are supposed to be considered and built simultaneously, because they are complementary to each other,

There is a clear possibility political undertones to these issues,
Truly solar and dams are under construction,
Kaduna and Kano signed mou for them, but can't tell if it's materialization is any thing to go by as a feasible tangibility presently,

The infrastructural deficit is so huge in the country, every bit of power is needed, may that is why they are contemplating receiving gas from neighboring niger.

Blue3k:


This reminds me of sokoto power plant state built. I haven't heard any updates after their test run of the plant. It's sup posed to run on diesel and have ability to run of cheaper fuel sources I remember. The issue was it was more 3 times more expensive than the others in region if it runs off trucked diesel.

Its really astonishingly bewildering,
May be it is tied to political hydra headed dimension,
I feel it could be one of the reasons the north insistently keep searching to discover and explore oil in large commercial quantities, in benue thorough, Chad Basin, etc
So that the south would not hang their necks with dependency on them for gas, I am only pensively ruminating,

However, like Obi1kenobi said, Hydroelectric dams, solar and wind will do greatly in the north as well.

Bizibi:
next two years I will dig this thread up.

Please do.

Hmmmmm

we've been hearing stuffs like this for eternity now..all na wash..

We no want,make dem share the money equally to every man,we go continue dey run generator and candle,cos this una format no go pass us by this time

I will only celebrate when it comes online

deomelo:
[s][/s]


Stop compounding your ignorant and baseless silly assertions with more ignorant and equally silly assertions.

If you are going to dispute cost based on similar endeavors in other environments, common sense dictates that you show facts, figures and relating factors to support your claims with and without these facts, you are just spewing ignorant trash.


This is the problem with you Igbos, you hate and criticize without facts, you just spew trash especially over what's not sited in your village.


Show facts to back up your views with or just keep quiet. Do you really we are all ignorant like your co-hateful and ignorant Igbos clapping over your silly and pointless jargon.


Oh yes, it's the weekend to make baseless assertions, but not the weekend to back up your assertions with facts.


How funny can you people be sometimes.

As always, not a surprise, he reveals the root of his weird fury.
Again, posting some comment on a forum while on the move doesn't entail that I have to spend my time rehashing online documents to bolster my argument. You're free to disagree with my claims and free to refute them (even though foaming in the mouth like a rabid dog while shouting "IPOB" doesn't count as a rebuttal) yourself, but as I already said, you're entitled to what you believe. There a million and one articles online critiquing the inflated costs of Nigeria's infrastructural projects, including from international observers. Whenever you can wipe the foaming dribble off your mouth and breathe normally, you can find them. I have no interest in indulging keyboard warriors today.