The Nigerian Petroleum Development Company (NPDC) and Seplat Petroleum Development Company Plc Joint Venture will invest N32bn ($200m) on the Azura-Edo power plant, Mrs. Diezani Alison-Madueke, the minister of Petroleum Resources, has said.
She said, the sum would be used to develop and deliver gas to the project.
Alison-Madueke, in a statement from the Nigerian National Petroleum Corporation (NNPC) on Monday, stated that the Federal Government was committed to an aggressive implementation of the initiatives designed to accelerate the provision of adequate gas supply for power generation.
She stated that the NPDC JV partners were determined to surpass its mandate of providing the required gas as well as gas infrastructure for the smooth operation of power plants in the country.
Alison-Madueke had recently announced the Federal Government’s N213bn inter-agency initiative to facilitate the liquidation of legacy gas debts in the power sector.
The petroleum minister said the 450megawatts independent power plant would be supplied with 120mmscuf of gas per day through the NPDC and Seplat joint venture from its new gas processing facilities at the Oben Gas Plant.
She said, “The Nigerian Gas Company would be providing gas transportation to the power plant using the 50km stretch of the Escravos Lagos pipeline spectrum.”
Alison-Madueke noted that Azura-Edo power plant gas transaction was a pioneer in the two tier gas pricing arrangement as proposed in the gas master plan which envisions a willing buyer-willing seller pricing.
According to her, Azura and Seplat had exemplified the success stories of the current administration in the power and oil and gas sectors.
The foundation laying ceremony for the Azura-Edo Power plant in Ihovbor/Orior Osemwende communities near Benin City was performed by President Goodluck Jonathan last week.
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