The presidency has confirmed via its Twitter handle, that President Bola Ahmed Tinubu is expected to commission the 1,350 MW Gwagwalada Independent Power Project (GIPP) in Abuja, the Federal Capital Territory on Friday, August 4, 2023.
The Nigerian National Petroleum Company (NNPC) Limited had previously announced the groundbreaking ceremony of the first phase of the project.
It is important to note that the project is in phases and the first phase capacity is 350 MW, which will be commissioned by the president on Friday.
According to the NNPCL, the project has the following characteristics:
- A combined cycle of three power train blocks of 4500 megawatts (MW) each
- Two gas turbines
- Two heat recovery and steam generators
- 1 steam turbine
- Can generate 10.3m MW per hour of electricity.
The Backstory
As far back as 2019, the NNPCL started the Environmental Impact Assessment (EIA) for the Gwagwalada IPP.
Back then, it was said that aside from generating 1350 MW into the national grid, the combined cycle gas turbine project would help to decongest the over-voltage on the transmission networks coming from closely located power generating companies in the gas-producing areas.
It is important to note that the Gwagwalada IPP will be developed on 54.7 hectares of land in the Gwagwalada area of the Federal Capital Territory (FCT).
The project will be co-financed by the NNPCL and its strategic partners – General Electric and the China Machinery Engineering Corp (CMEC) with a combination of a Debt-Equity sharing ratio of 70:30.
The Gwagwalada IPP is one of the previously announced natural gas-fired power plants by the Nigerian National Petroleum Company (NNPC) Limited way back in December 2017. The other plants are the Kaduna power station (900 MW) and Kano power station (1,350 MW).
The Gwagwalada IPP will be supplied through the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project, which is currently being developed.
Note that in April 2023, the NNPCL announced that the AKK gas pipeline was 70% complete, with $1.1 billion spent already.
Mele Kyari, the NNPCL Group Chief Executive Officer (GCEO) said:
- “The AKK gas pipeline is one massive project we are running as NNPC Limited. It has immense value for Nigeria and its socio-economic growth. The project has not stopped for one day. We have continued to fund it despite the absence of third-party financing.
- “We have so far spent over $1.1 billion on this project from our cash flow. We are a commercial company today. We have inter-company laws within our company now. This company can fund this project, so we do not need any support to deliver this project now.”
In February 2020, NNPCL secured a United States Trade and Development Agency (USTDA) $1.16m feasibility study grant for the Gwagwalada IPP.
What you should know: General Electric Nigeria (GE Nigeria) will supply the gas turbines and China Machinery Engineering Corp (CMEC) will provide engineering and construction services.