Nigeria: Qua Iboe gas power plant signs PPA with NBET


28 Oct 2017 | 1 minute read

Qua Iboe Power Plant Ltd (QIPP), the developer of the 540MW Qua Iboe gas-fired combined-cycle gas turbine power project has signed a power purchase agreement (PPA) with Nigeria Bulk Electricity Trading (NBET) at a signing ceremony in Abuja on 26 October, according to a press release from Nigeria’s Ministry of Power, Works, and Housing. NBET managing director Dr Marilyn Amobi said that it had taken nearly two years of negotiation to get to the point of signing.

The project had been expected to follow quite quickly in the footsteps of the 459MW Azura-Edo gas power project, which began construction in January 2016. Qua Iboe is expected to reach financial close in Q2 2018, with commercial operations in 2021.

The news comes days after it was reported that Mobil Producing Nigeria (MPN) agreed to sell the project to Dangote Group, Blackstone-backed Black Rhino – whose chairman is the former central bank governor and now Emir of Kano Muhammad Sanusi II – and the Nigerian National Petroleum Corporation. Mobil has signed a 20-year gas sales agreement with QIPP. The project is expected to cost $1.2bn.

Upon completion, the plant will add desperately needed electricity to Nigeria’s grid. African Energy Live Data shows that currently installed capacity of just 13GW – of which only a fraction is available and able to be evacuated – serves a population of 187m. However, power supply is expected to grow gradually in the coming years. A number of government-backed hydroelectric power plants are currently in development, but only Azura-Edo plant and a handful of solar PV projects in northern Nigeria are expected to be brought online by the private sector by 2020.

For more, see the upcoming issue of African Energy to be released 9 November.

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