20171028

FG Signs Pact To Build $1Billion Power Plant In Akwa Ibom

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.

According to All Africa, 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 CEO, Brian Harlihy, said the project would 'catalyse' investments in infrastructure nationwide and support government in building a sustainable power sector that works for all Nigerians.

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