Cummins
Power Generation Nigeria Limited, one of Nigeria’s leading independent power
providers (IPP) and part of the Cummins $19 Billion Fortune 500 Company, has
rolled out action plan leading to the building of the 300MW Africa’s largest
gas fired power plants with Sapele Power.
According to the Power Purchase Agreement (PPA) signed with Sapele
Power, Cummins will invest in the construction, operation and maintenance of
the plant to ensure continuous power supply and Sapele will then evacuate the
power through the national grid.
The
plant will operate on natural gas and utilise cogeneration waste heat recovery
technology of Cummins gas engines, one of the most efficient on the global
market, designed and manufactured in the UK, making the project both
economically viable and environmentally friendly.
Sapele
Power Plc (SPP) operates Nigeria’s second largest power plant with installed
capacity of 1020 MW, capable of meeting the energy needs of around 750,000
homes at full capacity. Since its acquisition by Eurafric Power Limited in
February 2014, SPP has come under new management with a mandate of transforming
the plant into a power hub over the next 5 years.
Outlining
some of the strategies to be deployed by the company to achieve the set target,
Chairman, Sapele Power Plc (SPP), Mr Anthony Onoh explains, “we have put
together a detailed business plan for the phased and sustainable actualization
of this goal. The first phase of this plan focusing on capacity recovery is
billed to bring plant output to 250MW by Q2 2016, with the return to service of
a third Steam Turbine Unit. The second phase of the plan will triple plant
output in the short-midterm through a mix of projects such as the present
project with Cummins.”
“Sapele
Power Plc, leveraging its parent company’s pedigree in the energy and Oil &
Gas industry, is poised to facilitate the timely implementation of this
project. Our growth plan is driven by strong transaction economics, a robust
and expanding sector supported by favourable government and fiscal terms, and
strong potential financial results’ Mr Onoh further explained. Satisfactory
contractual framework for gas supply, transport, and power purchase coupled with
the plants comparative advantage of ample land and water-front real estate are
also contributing drivers.
We
need to understand that the Buhari’ government’s effort to boost power
production is imperative to long term growth and improving the standard of
living in Nigeria. Projects such as the Cummins-Sapele deal are strong
indicators that the private sector is investing in power generation.” He said.
Deepak
Khilnani, Chairman of Cummins Cogeneration Ltd, the investor in the project, reaffirmed
Cummins Power commitments to lighting up Nigeria, guaranteeing up to 99% power availability at all
times, which is why Cummins is committed to investing and
building gas fired power plants across Nigeria.
According
to Deepak Khilnani, “With the gas fired power plants across Nigeria, the
development of the power industry will significantly boost employment –
construction, operation and plant services directly boost local jobs. The most
significant medium term employment driver for these plants will also be to enhanced
industrial growth.
As
the country moves away from private diesel generation towards a reliable
national grid, domestic manufacturing is likely to increase, reducing the
nation’s dependence on imports and foreign currency.
“We have significantly invested in our after-market
and maintenance capability as well as our sister company Powergas which is
Nigeria’s largest compressed natural gas (CNG) operator so that we can deliver
CNG when piped gas is not available – for example one of our plants in Lagos
was down for less than a minute in 2015, operating at over 99% power
availability,” said Deepak Khilnani.
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