The Nigerian National Petroleum Corporation (NNPC) and the United States Trade and Development Agency (USTDA) signed a $1.16 million grant for the NNPC Abuja Independent Power Project, during the ongoing International Petroleum Summit (NIPS) in Abuja on Tuesday.
Speaking at the conference, the Group Managing Director of the NNPC, Mele Kyari, said the plan by the corporation to build the 1,350mw power plant in Abuja was part of the national strategy to fight the power challenge in the country and monetize its abundant natural gas resources.
The USTDA grant will complement the ongoing feed project in order to make the Abuja IPP initiative more bankable for strategic investors’ participation.
The plant which is designed to generate 1,350 megawatts of electricity to alleviate the power challenge in the country, would leverage on the existing huge natural gas resources from the NNPC upstream and the proposed Ajaokuta-Kaduna-Kano (AKK) gas pipeline.
Speaking during a Panel Review Meeting last November on the Environmental Impact Assessment (EIA) of the project, the Abuja Independent Power Plant Project manager, Benjamin Adah, stated that the proposed project would help diversify and monetize NNPC gas revenue stream through power generation.
He also said the project would assist in reducing the current gas flare in the country, adding that the huge natural gas resources from the NNPC Upstream and the proposed AKK Gas pipeline will boost the nation’s revenue base and generate employment opportunities for the youth.
Mr. Adah said that besides generating 1350MW into the national grid, the project would help to decongest the over-voltage on transmission network coming from closely located power generating companies in the gas-producing areas.
The project is expected to be situated on a 54.7 hectares of land in Dukpa, Gwagwalada Area Council of Abuja.