Article Summary
- By 2025, the Proton Energy IPP will increase Nigeria’s power supply capacity.
- The company has signed a gas supply deal for the IPP with Shell, NNPC, GACN, TotalEnergies and others.
Proton Energy Limited has announced that its independent power plant located in Delta State will begin operations by 2025, as the IPP will begin supplying power to the country’s national grid by 2025.
The company of recent signed a deal with Shell Petroleum Development Company, Nigerian National Petroleum Company Limited, TotalEnergies, the Nigerian Agip Oil Company Limited and the Gas Aggregation Company of Nigeria for natural gas supply to Proton’s independent power project (IPP) tagged the Delta Sunrise project.
The Delta Sunrise project is a gas-fired combined cycle power plant that is under development and located in Sapele, Delta state and is being developed at the cost of $250 million. According to reports, the project would enhance industrialization, business and job growth in the country as well as the host communities.
The project will be built in two phases. The first phase will deliver 150 MW of electricity to the national grid, and the second phase will add 350 MW. The company has also indicated that it plans to add 1500 megawatts (MW) of installed capacity to the national grid within the next five years. During the gas supply deal signing, the Chief Executive Officer of Proton Energy, Mr. Oti Ikomi said:
“We thank our partners for their dedication towards executing this agreement and their contributions towards the development of a more robust domestic electricity market.
“This agreement is going to give us a multi-year supply of natural gas to the port on the sunrise project located in Sapele in Delta State. Gas is the most critical supply cost structure in developing a power plant. So, we are very proud of this.
“We expect direct and indirect jobs to be over 10,000. Look at the multiplier effect on our nation. It will contribute to growth and development.”
IGU supports small-scale gas projects
In its February 2023 Gas for Africa report, the International Gas Union (IGU) identifies a lack of infrastructure as a hindrance to natural gas penetration despite the emergence of “virtual pipelines” (networks over which gas is trucked) over the past few years in West African countries.
However, the IGU believes that increasing political will is placed on the development of gas-based industrialization, expansion of CNG networks, and construction of small-scale gas projects in West African countries, including Nigeria.
