Nigerian National Petroleum Corp. (NNPC) has made progress on its move towards becoming an integrated energy company, announcing plans to build a power plant in co-operation with the Bayelsa State government. A statement from NNPC, on June 1, said the plan was part of its efforts to resolve the country’s power shortages.
NNPC’s managing director, Maikanti Baru, held talks with Bayelsa Governor Henry Seriake Dickson last week, at NNPC’s headquarters in Abuja.
The power plant would be built at Bayelsa’s proposed industrial park. Collaboration between the various parties would help attract investors to the Niger Delta, it said.
“We have a lot of areas of collaboration. The NNPC will support the Bayelsa State government every inch of the way to deliver on the power plant in the proposed industrial park, ensure security of oil and gas infrastructure and siting of other inclusive projects that would improve the lives of the people in the communities,” Baru said.
The official also said the government was working on plans for greenfield modular refineries in Bayesla, although this has stalled owing to the withdrawal of foreign partners. NNPC and its joint venture partners also intend to work together with the State Trust Fund in an attempt to mitigate pipeline vandalism, he said.
Baru also commented on the slow progress at the Brass LNG project. A final investment decision (FID) had been planned for 2012, he said, “but the shareholders were unable to secure the market due to new plants in East Africa and other developments in the industry. What the shareholders in Brass LNG are doing now is to redesign the plant and secure a market because without the market the project cannot go on,” he said.
NNPC expressed its plan to diversify its operations in March. Baru, in comments at a conference, said the company was already working on plans for 4,000 MW of power, in addition to working on transmission issues. The interest of NNPC in this was driven by Nigeria’s “huge energy gap”, the statement said.
At the time, Baru said the problem was not with gas supplies, but rather with the transmission system. The official also commented in March, on the modular refinery issue, saying local community members could form consortia to establish modular refineries, with up to 1,000 bpd of capacity.