Chevron plans 780mw power plant in Lagos
By Sulaimon Salau
CHEVRON Nigeria Limited (CNL), operator of NNPC/Chevron Joint Venture, has unveiled its plans to construct a 780 megawatts (mw) combined cycle power generating plant to be situated in Agura, near Ikorodu in Lagos State.
The Independent Power Project (IPP) plant, billed for start-up early 2009 will be built, owned and operated by the energy giant in a joint venture with the Nigerian National Petroleum Corporation, (NNPC).
This, when fully implemented, would bring relieve to electricity consumers in Lagos and its environs.
Disclosing this to energy stakeholders in Lagos on Thursday, the company's General Manager, Gas Marketing and Commercial, Mr. Charles Adeniji, described the development as part of Chevron's strategy to optimally utilise its gas resources and further business expansion.
He, however, noted that the power plant would require about 120 million cubic feet per day (mmcf/d) of gas, which is expected to be supplied by its Escravos-Lagos gas pipeline.
Adeniji pointed out that though the company has committed about 300 mmcf/d of gas to power stations in the country, still foresee more market opportunities for the next ten years, among which is the new power generating plant.
Commenting on the huge amount involved in the project, he noted that the funds would be raised 100 per cent through equity, and as could be further provided by the joint venture.
NNPC has the major stake of 60 per cent in the project, while Chevron retains the remaining 40 per cent.
The Chevron boss, who spoke on the topic "Investing in gas utilisation: Chevron's experience" said the company in its gas monetisation plan is presently is working on West African Gas Pipeline (WAGP), Liquefied Natural Gas (LNG) plant, Gas-to-liquid (GTL) among others, which are meant to be favourable to the atmosphere in Nigerian oil and gas industry.
On the 2008 gas flaring deadline, Adeniji expressed the company's commitment to meet the target, but with some conditions in place.
He said: "For the fact that Chevron Corporation is committed to routine gas flare around the world, Chevron Nigeria Limited also target 2008 for completion of routine flaring elimination, subject to adequate and timely funding, no disruption to project execution arising from community and labour disputes, and pragmatic agreement on Nigerian content."
He stressed that "special consideration must be extended to investors to ensure that development of gas resources are continued and the domestic gas market demand is continually met. Clear criteria must be established and communicated for determining the volume of national gas resources to be allotted to domestic, sub-regional and international markets"
As gas monetisation supports elimination of flares, he assured "CNL has a robust utilisation programme, which will achieve complete flare elimination."
"CNL and Nigeria are members of Global Gas Flare Reduction Initiatives and both believe in the environmental and economic benefits of timely elimination of flares," he stated.
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