Rivers, Agip Sign Gas Purchase Agreement

The state governor, Dr Peter Odili, signed the agreement on behalf of the state government while the NAOC Managing Director, Mr Antonio Panza, signed for the joint ventures partners, which include the Nigerian National Petroleum Corporation (NNPC) and Phillips.

With the agreement, Agip is to supply 36 million metric standard cubic feet of gas for the operation of the Omoku gas turbine station in Ogba/Egbema/Ndoni local government area, the largest of the three stations gas turbine stations constructed by the state government and is due for commissioning soon.

The Omoku station is built to accommodate six gas turbines but the Attorney-General and Commissioner for Justice, Mr Odein Ajumogobia, said at the signing ceremony that only four of the turbines had been installed, although the gas purchase agreement covers all the turbines.

Odili assured the joint venture partners that a legal framework would soon be put in place to ensure that whatever agreement that was entered into by the present government was respected in future to ensure that project became sustainable.

“In our next sustainable development project meeting in July, we would show that we are matching words with action, and a legal framework to ensure that what we have done would not be changed in future will be ready,” he said.

The governor, however, acknowledged that the IPP had been greeted with skepticism but attributed such posture to the enormous capital outlay required for such project, its complexity and the misconception that a state government cannot execute such a project.

Earlier, Managing Director of Agip, Mr Panza, described the gas purchase agreement with the government as a major challenge to the company, disclosing that an 18′ pipeline to deliver the gas from its OB-OB plant had already been constructed.

He said some of the facilities at the station were modified to meet with the state government’s request, describing the power project as a major initiative that would power the economic and social development of the state.

“The project would not only confirm the status of the state as an industry-friendly and peaceful environment but also actively contribute to reliability of its infrastructure for investors and improve the well-being of the citizenry,” Panza added.

The state governor had claimed recently that the gas turbine station was ready for commissioning but was only delayed by the non-completion of the transmission lines to take power to all parts of the state.