Chevron Nigeria Limited has indicated interest in building an 800-megawatt power plant to be located in Lagos.
The power plant, to be known as Agura IPP, will be owned 60 per cent by the Nigerian National Petroleum Corporation and 40 per cent by Chevron.
The plant is expected to begin operation in 2011 with an initial 400 500MW in the first phase, and a total installed capacity of 700 800MW when the last phase is completed.
The Manager, IPP Gas Marketing & Commercialisation, Chevron, Alhaji Abdul-Aziz Dikko, unfolded the companys plan when a team from the company visited the Nigerian Electricity Regulatory Commission in Abuja on Thursday.
According to him, the thermal plant will be on Build, Own and Operate arrangement, adding that a feasibility study on the project site was completed in 2006.
International oil companies operating in Nigeria have in the recent past, been indicating interest in constructing independent power plants. Agip led the way with the construction of an IPP at Okpai, Delta State.
Aside from seeking to play some part in finding a solution to one of the nations key economic problems, the oil companies are also under pressure from the Department of Petroleum Resources to either invest in power or in building refineries as a condition for the renewal of their operating licences.
The Director, DPR, Mr. Tony Chukwueke, stressed that the licences of most of the IOCs were expiring and they must commit themselves to capital investments in the country before they would be renewed.
In his speech, the Commissioner in charge of Research and Development, NERC, Prof O.C. Iloeje, advised Chevron to apply to the Commission for a generation licence for its proposed Agura Power Generation Project.
Iloeje explained that the law setting up the NERC required that for any power plant above one megawatt capacity, a prospective company needed a licence from the commission.
He also advised the oil company to submit to the Commission for scrutiny, the draft Power Purchase Agreement adding that the NERC was responsible for approving all aspects of an IPP licence, which includes the business plan, technical, financial and project bankability among others.
Sep142007