FG Signs MOU with Strancton, Greenville Oil

Fri, Nov 28, 2014
By publisher
3 MIN READ

Energy Briefs

THE federal government has signed a $1 billion Memorandum of Understanding with Strancton Limited for the construction of a 1,000 megawatts power plant in Katsina State. It also signed another MoU with Greenville Oil and Gas Limited for the supply of liquefied natural gas to the Kaduna power plant.

Chinedu Nebo, minister of power, who signed the contracts on behalf of the government, said the proposed power project was highly innovative as its promoter, Strancton, working with Katsina State, would use gas from Niger Republic to fire the plant. He said the project was a call on Nigerians to take full advantage of gas reserves by building infrastructure for its utilisation, adding that gas alone could boost the country’s economy even without oil.

He promised to support the project as it was another way to stabilise the nation’s grid system and challenged other states to emulate the Katsina State’s initiative by investing in the sector. Mohammed Wakil, minister of power for state, said the signing of the MoUs was a proof that the efforts of the government in wooing investors were yielding positive results.

He said the realisation of the project would bring Nigeria nearer to the target of 20,000MW by 2020 as contained in the vision 2020 document. He observed that the project, which would run on gas from Niger Republic, would 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.”

Speaking on behalf of the two companies, Edozie Njoku, chief executive officer, Strancton Limited, said the plant would be the first gas pipeline-fed electricity project in northern Nigeria. He said the initial target for the first phase was 300MW with a 30-month construction period, adding that the plan was to move steadily to 1,000MW in years ahead. The estimated $1 billion project, according to Njoku, will lead to reduced energy cost, industrial development, creation of skilled jobs and improve the quality of livelihood in Nigeria.

New Satellite System To Track Gas Flaring

Mallam
Mallam

NIGERIA is now using a satellite tracking system to help detect companies who flare gas illegally and make sure they pay fines for their action. The system is expected to bring in more than $1 billion yearly in fines for illegal gas flaring. The new gas flare tracker is an online map showing data from a United States National Oceanographic and Atmospheric Administration satellite that will observe natural gas fires when orbiting over Nigeria.

The measurements it records will feed into estimates of how much gas is burned, its carbon dioxide content, and its potential value. Laurentia Mallam, minister of environment, said the system has the ability to calculate the amount of unpaid fines owed by facility owners, estimated at $1.1 billion per year. If harnessed, the minister said, gas could meet 40 percent of energy needs in Nigeria, as the country is currently struggling to generate enough electricity to keep the lights on for more than two or three hours a day in some parts of the country.

While it was outlawed in 1984, the burning of gas that occurs in oil deposits is still a major cause of human and environmental issues across the country. Andrew Pocock, Britain’s high commissioner to Nigeria, said at the event that the tracking system would paint a stark picture of the extent of gas flaring in the country. The United Kingdom’s Department for International Development provided funding for the project.

— Dec. 8, 2014 @ 01:00 GMT

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