President Bola Tinubu, launches construction of the first phase of the NNPCL 1,350MWs Gwagwalada Independent Power Plant (GIPP) in Abuja.
IdanNews reported that the president spoke on Friday while performing the groundbreaking ceremony of the project’s 350MW first phase said part of his campaign promises was to use all obtainable energy sources to boost power generation beyond the existing capacity of 12,000mw.
The GIPP project is a 1,350MW combined cycle power plant that will sit on an already acquired 54.7 hectares of land in Gwagwalada.
The project is led by NNPC in a joint venture with China Machinery and Engineering Corporation (CMEC) for the EPC, and General Electric (GE) for the long-term service agreement.
However, Tinubu affirmed that Nigeria cannot become a productive and industrialized economy, tackle poverty or create thousands of high-paying manufacturing jobs if it cannot generate, transmit and distribute reliable electricity.
“Government will ensure that all distribution bottlenecks are removed and will be removed. We cannot become a productive and industrialised economy unless we can generate, transmit, and distribute electricity. To accelerate our economic growth, we must remove every obstacle on our [way] to energy sufficiency”. Tinubu said.
He explained that the ground-breaking is important to the nation, as it marked the first bold step in his administration’s effort to inaugurate a substantial and virile energy sector and deliver uninterrupted power to all Nigerians.
“That this project is taking off so early in the life of our administration, it should serve as a notice to the residents of Abuj and indeed all Nigerians of our determination to bring positive change to this nation”.
Tinubu promised that his administration would continue to energetically woo the implementation of other low-carbon energy solutions, such as solar, hydro, wind, thermal, and biofuels, for both on-grid and off-grid power systems.
“We will focus on rural electrification to improve the standard of living of people in rural communities and re-energise their socio-economic opportunities.
He said the plant will enhance power supply to homes and businesses, and produce more jobs for young professionals and local communities.
“Therefore, the investment of NNPC Ltd alongside its partners in the installation of additional 350mw will surely increase the energy supply level to Nigerian homes and businesses, catalyse economic empowerment, and, ultimately, renew the hope of our energetic and creative citizens,” he added.
Also the Group Chief Executive Officer of the NNPCL, Mele Kyari, in his remarks said the project is a huge step towards achieving the Company’s Gas & Power mandate to add 5GW into the National Power generation by 2024.
he said NNPC and partners are delivering about 80OOMW to the national grid from Afam VI and Okpai Phase 1 thermal power plants with a combined installed capacity of 1,0OMW.
”We have also completed Okpai Phase 2 project that will add up to 320MW of power to the national grid and progress with other power plant projects across the coun including those along the AKK pipeline route ,” he added.
He explained that the Gwagwalada IPP is among the NNPC flagship projects along the Ajaokuta-Kaduna-Kano corridor.
Adding that this is part of the 3,600 cumulative power capacity, which includes Kaduna IPP (900MW) and Kano IPP (1,350MW).
“We know that expanding access to energy will change the game. It will create a better investment climate and promote balanced economic growth, a win-win situation for the Nation and for NNPC as a commercial energy company,” he said.
According to a statement from the presidency, the plant will be powered by gas from the Ajaokuta-Kaduna-Kano (AKK) pipeline that is currently under construction.
When completed, the GIPP is expected to generate a revenue of $800 million annually.
Tinubu charged NNPC to ensure that the project is completed in the scheduled three years period.
It was necessitated by the need to deliver gas towards additional power generation capacity in Nigeria. Gas supply to the plant shall be through the Ajaokuta- Kaduna-Kano (AKK) Gas Pipeline Project which is currently in the advanced stages of construction.
Accordingly, the fuel requirements will be satisfied under a long-term Gas Sales, Purchase and Aggregation Agreement with Shell Petroleum Development Company Joint Venture (SPDC JV).
The project consists of three powertrain blocks of 450MW each.
Each block will include two General Electric GT13E2 gas turbine generators, two heat recovery steam generators, one steam turbine electric generator, one direct air-cooling condenser, a balance of plant equipment and a black start diesel generator.
On completion, the project will generate an average of 10.3 million Megawatt hours of electricity per year for sale to the Nigerian Bulk Electricity Trading Plc (NBET).
The sales of the generated power will be through Power Purchase Agreement with the NBET to distribution companies under long-term agreements and direct sales to major off-takers.
China Machinery Engineering Corporation will construct the project under a turnkey Engineering, Procurement and Construction contract.
The ground-breaking event was attended by the Group Chief Executive Officer of the NNPC Limited, Mele Kyari; the Permanent Secretary of the Ministry of Petroleum Resources, Gabriel Aduda and his counterpart in the FCT Olusade Adesola, among other top dignitaries in the private and public sectors.