The Minister of Power, Professor Chinedu Nebo, has signed two separate Memorandum of Understandings (MoUs) for the construction of 1,000 mw Power Plant in Katsina with Strancton Limited.and Greenville Oil and Gas Limited for the supply of Liquefied Natural Gas (LNG) to the Kaduna Power Plant.
Speaking at the ceremony in Abuja on Friday, Prof. Nebo said, “because of the importance of these two MoUs to Mr. President’s Transformation Agenda, these flag ship got mentioned in my presentation at the 2014 Ministerial Platform which held yesterday”.
He said the proposed power project is highly innovative as its promoter, Strancton, working with Katsina State will utilize gas from Niger Republic to fire its proposed plant.
He said such innovative project is a call for us to take full advantage of gas reserves, by building infrastructure for its utilization, as he observed that gas alone can assist the country’s economic development immensely even without oil.
Prof. Nebo promised to support the project as it is another way to stabilize the nation’s grid system by making it robust and active, as he noted that the promoters have brought to fore new ideas of how to provide cheaper fueling, as it has been established that “you don’t need to locate a power plant next door to where you have gas hence, it is possible to use liquified natural gas”.
The Minister challenged other States to emulate the Katsina State initiative, by keying into Mr. President’s privatization agenda in the power sector and investing in the sector in partnership with the private sector.
Earlier, the Minister of State, Mohammed Wakil in his comment said the signing of the MoUs is a proof that the efforts of the Government in wooing investors are yielding positive results.
He said, he is excited that the realization of the project will bring Nigeria nearer to the target of 20,000MW by 2020 as contained in the vision 20:20:20 document.
He observed that the proposed project that has been conceived on gas from Niger Republic will assist in bridging the gap of non-availability of gas, adding that “the planned supply of LNG to Kaduna Plant will give us a good footing”.
Hon. Wakil stressed that the local content component of the two MoUs is commendable, as it would ensure that Nigerian Youths take their rightful positions in the future.
Speaking on behalf of the two companies, Edozie Njoku, CEO of Strancton Limited said the plant is the first gas pipeline – fed electricity project in Northern Nigeria between Katsina State Government and Consortium of General Electric, Vellbridge Oil, Gas and Natural Resources Limited and other private partners.
He said the initial target for the first phase is 300MW with a 30-month construction time-table, the plan is to move steadily to 1,000MW in years ahead.
The estimated $1 billion project, according to Njoku will lead to reduced energy costs, industrial development, creation of skilled jobs, build entrepreneurship and in general, improve quality of life.
