Energy News

FG awards 40MW power licence to Green Energy

By Anthony Okafor

The Federal Government has awarded a licence to Green Energy International Limited, GEIL, operator of the Otakikpo Marginal field in Rivers State, for the construction of a 40 megawatts embedded power plant.

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In a statement in Abuja, Green Energy said the award of the licence by the Nigerian Electricity Regulatory Commission, NERC, was sequel to its application to enable it utilise its gas resources for power generation as part of its commitment to the Federal Government to use the gas from the Otakikpo field for power and domestic gas projects.

FG awards 40MW power licence to Green Energy
FG awards 40MW power licence to Green Energy

Chairman of the company, Professor Anthony Adegbulugbe, disclosed that the 40 megawatts, MW, electricity generating plant was scheduled to come on stream latest by June next year.

In addition to providing electricity for company’s field power requirements and access to electricity for the host communities, Adegbulugbe said the 40MW power plant would provide power to the Otakikpo Industrial Park, which would be sited in Ikuru town in Andoni local government area of Rivers State, being promoted by Atlantic Industrial Park Limited.

He listed the company’s host communities to include Ikuru town, Asuama Ayama Ekede,Ugama Ekede and Asu Oyet, adding that some of the committed projects to be located at the industrial park included an onshore oil terminal, 5,000 barrels per day modular refinery and a mini Liquefied Natural Gas, LNG, plant to serve the domestic market.

He explained that the company had earlier on secured a power generation licence for 12 megawatts of electricity, had to increase its projected power generation capacity to 40 MW following the increase in associated gas that will be produced from enhanced oil production during the second phase of the Otakikpo field.

Adegbulugbe expressed gratitude to NERC for approving the licence, saying it underscored the government’s determination to increase access to power for economic development of the Niger Delta.

He said the company had already on site, six megawatts electric power plant undergoing installation under the first phase of the small-scale gas utilization program, SSGUP, adding that the 6MW will be commissioned in the third quarter of 2019, while the 40MW will come on-stream by the second quarter of 2020.

He also disclosed that the 12 million standard cubic feet per day, mmscfd, gas processing plant for which the approval to construct was received from the Federal Government in the fourth quarter of 2018 was currently undergoing Factory Acceptance Test at the manufacturing facilities of the Chinese company -Peiyang Chemical Equipment Co. Ltd (PCC), the original equipment manufacturer (OEM).

He added that the Liquefied Petroleum Gas, LPG extraction plant would be operative in fourth quarter 2019, thereby increasing the source of LPG, also known as cooking gas, to the local market.

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