By Anthony Isaac
The Nigerian National Petroleum Corporation and the United State Trade and Development Agency (USTDA) have signed an agreement for a grant worth $1.1 million to undertake a feasibility studies for the construction of a 1,350 megawatts Abuja Power Generation Plant.
The grant would enable General Electric carry out feasibility studies including environmental impact assessment, technology needs, and financing for the project.
The deal was signed in Abuja on Tuesday at the ongoing 2020 Nigeria International Petroleum Summit (NIPS)
Speaking shortly before the agreement was signed, the U.S Ambassador to Nigeria, Mary Beth Leonard said the project when completed increase domestic utilization of Nigerian gas which are largely untapped.
“When completed, this power plant will take advantage of this new domestic resource and help address Nigeria’s existing critical energy needs.
“Secondly, this project demonstrates the US government’s commitment to strengthening Nigeria’s energy sector and our enduring partnership with the government”, she added.
She said the grant will “provide the in depth technical economic and financial analysis necessary to develop a major new source of energy and exciting one thousand three hundred fifty megawatt natural gas power plant here in Abuja”.
In his remarks, the Group Managing Director of the Nigerian National Petroleum (NNPC), Mele Kyari, said the feasibility studies would de-risk the project, making attractive to investors.
Kyari noted that the Nigerian energy deficiency could be corrected with partnership among stakeholders, stressing that the grant would help to ensure that power was delivered to Nigerians for economic growth and development.
He pointed that gas remains the cheapest source of power in Nigeria and efforts must be made to stop flaring it in the country.
He said: “We have gas in abundance, we must create infrastructure that will help create gas for power generation. We need power to create jobs and we must create prosperity, so that we can have peace in our country.
“We are grateful for this grant,” he added.
On his part, the Director, U.S Trade and Development Agency, Mr Thomas Hardy, said that the agency was proud signing the grant, explaining that it widens the US government’s interventions in Nigeria’s power sector.
“Nigeria is the largest population in Africa and we are proud investing in the energy sector in the largest African nation to provide power to the rural communities,” Hardy said.
He added that the grant would be used for feasibility study of the Independent Power Projects (IPP) and other infrastructure development in the energy sector.
“The grant is part funding for the NNPC Abuja IPP modelled to generate 1,350 mw,” he said
