Over the weekend, Nigeria’s Minister of Power, Abubakar Aliyu, granted a power generation license to the Nigerian National Petroleum Company (NNPC) Limited, to establish and operate the Maiduguri Emergency Power Project (MEPP) in Borno State.
In September 2021, the NNPC laid the foundation for the construction of the 50 MW Maiduguri Emergency Power Project (MEPP) at the injection substation, Baga Road, in Borno State.
During his speech at the foundation laying event in 2021, the group managing director at NNPC, Mele Kyari, said the power plant generation will be based on modular design GE TM2500 trailer mounted, mobile power units, to run on natural gas and diesel.
Kyari also noted that the engineering, procurement, and construction of the MEPP, would be handled by China Machinery Engineering Corporation (CMEC).
Reason for the MEPP: In 2021, insurgents reportedly destroyed power infrastructure in the state, including 330 KVA and 132 KVA electricity lines along Maiduguri-Damaturu and Maiduguri-Damboa-Biu roads, throwing thousands of households and businesses in darkness. The MEPP will help restore the power supply to the affected areas.
How the project makes economic sense: Natural gas analyst, Kayode Oluwadare, told Nairametrics that the project makes economic sense for local natural gas players. According to him, Borno State has no natural gas, and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline terminates in Kano State. So, the MEPP will have to rely on virtual pipelines for its natural gas delivery.
For Oluwadare, the options before the NNPC are:
Engaging companies that are delivering natural gas through virtual pipelines: Virtual pipelines are liquefied natural gas (LNG) trucks that convey gas to locations without existing gas pipelines. Greenville LNG is an option, according to Oluwadare.
He said in 2021, Nigeria Liquefied Natural Gas (NLNG) Limited gave concessional rights to three companies; Asiko Energy, Bridport Energy, and Gas Plus Synergy to deliver LNG across the country for 10 years, starting in 2022. Also, Axxela Energy operates a micro-scale LNG project in Ajaokuta, Kogi State, with the capacity to deliver gas to the MEPP.
The Kolmani project in Gombe and Bauchi: Oluwadare told Nairametrics that Borno, Gombe and Bauchi are all in the Northeast, so, it will be easier to pipe gas from the Kolmani oil and gas project in Gombe and Bauchi to the MEPP in Borno state. According to him, these options give locally vested companies the chance to increase their revenue base and secure more jobs/productivity for staff along the value chain.
For the record: The Nigerian Electricity Regulatory Commission (NERC) previously approved the application by the NNPC for the generation of the 50MW power station. The licence is for a renewable 10-year period.
