GEIL gets licence to power Niger Delta communities
GEIL is expected to power the communities with a 40 megawatt (MW) power plant, its Director of Corporate Affairs, Olusegun Ilori, disclosed in Abuja, yesterday.
The oil and gas firm had applied to NERC for a power generation licence to enable it utilise its gas resources from the field for electricity, to foster the Federal Government’s gas utilisation drive for power and domestic gas projects.
GEIL had earlier gotten approval to generate 12MW, but later increased projected power generation capacity to 40MW following an increase in the associated gas that would be produced from enhanced oil production during the second phase of the Otakikpo Field.
Ilori said in addition to providing electricity for the company’s field power requirements and access to electricity for host communities, including Ikuru town, Asuama Ayama Ekede, Ugama Ekede, and Asu Oyet, the 40MW power plant would provide power to the Otakikpo Industrial Park. This would be sited in Ikuru town in Andoni Local Government Area of Rivers State, being promoted by Atlantic Industrial Park Limited.
According to him, some of the committed projects to be located at Industrial Park include an Onshore Oil Terminal, 5000bpd modular refinery, and a mini LNG plant to serve the domestic market.
The Chairman of GEIL, Prof. Anthony 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.
Adegbulugbe said the company already has 6MW electric power plant undergoing installation under the first phase of the small-scale gas utilisation programme (SSGUP), adding that this would be inaugurated third quarter (Q3) of this year, while the 40MW will come on-stream by Q2 2020.
He also disclosed that the 12mmscfd gas processing plant for which the approval to construct (APC) was received from the government late last year, is currently undergoing Factory Acceptance Test at the manufacturing facilities of the Chinese company – Peiyang Chemical Equipment Co. Ltd (PCC), the original equipment manufacturer (OEM).
The Chairman added that the liquefied petroleum gas (LPG) extraction plant would be operative in last quarter of this year, thereby increasing availability of LPG in the local market.
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