Black Rhino, the operator of Nigeria's 540-MW Qua Iboe Gas Power Plant, has expressed optimism that it can reach a Final Investment Decision (FID) unscathed.
Black Rhino Nigeria chairman Muhammadu Sanusi, who is also the Emir of Kano, said this at the end of his official visit to Aqua Ibom, where the power plant is cited. "We have partnered with a uniquely qualified participant that has demonstrated a strong interest in ensuring the success of the Qua Iboe power project. All stakeholders are continuing to work expeditiously to conclude the necessary agreements for a final investment decision,” he said.
“Hopefully, within the next few months, we will be able to get financial close, which will bring in US$1.2 billion into this project,” he said.The power plant was originally planned by Mobil Nigeria Upstream, in direct partnership with the Nigerian National Petroleum Corporation (NNPC), in a bid to fill Nigeria’s huge electricity deficit. This arrangement was later modified with Black Rhino Group taking over as the operator and splitting equity ownership with NNPC, Dangote Group and the Aqua Ibom state government.
Mobil, however, said that it was committed to supplying 11 mcm per day of gas as feedstock for the power plant, including the construction of a 53-km offshore pipeline that would guarantee uninterrupted gas supply to the plant at a cost of US$500 million.
The power plant will come on stream by 2021 and connected to the national grid system through a 57-km transmission line built by the project promoters
The project, supported by a US$150 million partial risk guarantee from the World Bank, is also strengthened by a Power Purchase Agreement with state-owned Nigerian Bulk Electricity Trading (NBET).Nigeria’s has around 7,000 MW of capacity for a population of over 190 million people, with only 5,000 MW currently open.
Although the country has abundant natural gas reserves, several thermal power plants have remained out of service because of gas supply constraints.
Mobil Producing has over 300 oilfields in the oil-rich south of the country, and together with other gas producers, aims to change the electricity production landscape with 20,000-MW of gas-fired capacity by 2021.