Cummins Power To Expand Sapele 300MW Project Output

Yemisi Izuora
Cummins Power
Cummins Power Generation Nigeria Limited, one of Nigeria’s leading independent power providers (IPP) has rolled out action plan leading to the building of the 300MW Africa’s largest gas fired power plants with Sapele Power.

According to the Power Purchase Agreement (PPA) signed with Sapele Power, Cummins will invest in the construction, operation and maintenance of the plant to ensure continuous power supply and Sapele will then evacuate the power through the national grid.

The plant will operate on natural gas and utilise cogeneration waste heat recovery technology of Cummins gas engines, one of the most efficient on the global market, designed and manufactured in the UK, making the project both economically viable and environmentally friendly.

Sapele Power Plc (SPP) operates Nigeria’s second largest power plant with installed capacity of 1020 MW, capable of meeting the energy needs of around 750,000 homes at full capacity. Since its acquisition by Eurafric Power Limited in February 2014, SPP has come under new management with a mandate of transforming the plant into a power hub over the next 5 years.

Outlining some of the strategies to be deployed by the company to achieve the set target, Chairman, Sapele Power Plc (SPP), Mr Anthony Onoh explains, “we have put together a detailed business plan for the phased and sustainable actualization of this goal.

The first phase of this plan focusing on capacity recovery is billed to bring plant output to 250MW by Q2 2016, with the return to service of a third Steam Turbine Unit.

The second phase of the plan will triple plant output in the short-midterm through a mix of projects such as the present project with Cummins.”

“Sapele Power Plc, leveraging its parent company’s pedigree in the energy and Oil & Gas industry, is poised to facilitate the timely implementation of this project. Our growth plan is driven by strong transaction economics, a robust and expanding sector supported by favourable government and fiscal terms, and strong potential financial results’ Mr Onoh further explained.

Satisfactory contractual framework for gas supply, transport, and power purchase coupled with the plants comparative advantage of ample land and water-front real estate are also contributing drivers.

We need to understand that the Buhari’ government’s effort to boost power production is imperative to long term growth and improving the standard of living in Nigeria. Projects such as the Cummins-Sapele deal are strong indicators that the private sector is investing in power generation.” He said.

Deepak Khilnani, Chairman of Cummins Cogeneration Ltd, the investor in the project, reaffirmed Cummins Power commitments to lighting up Nigeria, guaranteeing up to 99 percent power availability at all times, which is why Cummins is committed to investing and building gas fired power plants across Nigeria.

According to Deepak Khilnani, “With the gas fired power plants across Nigeria, the development of the power industry will significantly boost employment – construction, operation and plant services directly boost local jobs. The most significant medium term employment driver for these plants will also be to enhanced industrial growth.

As the country moves away from private diesel generation towards a reliable national grid, domestic manufacturing is likely to increase, reducing the nation’s dependence on imports and foreign currency.

“We have significantly invested in our after-market and maintenance capability as well as our sister company Powergas which is Nigeria’s largest compressed natural gas (CNG) operator so that we can deliver CNG when piped gas is not available – for example one of our plants in Lagos was down for less than a minute in 2015, operating at over 99 percent power availability,” said Deepak Khilnani.

Nigeria rejects Saudi’s offer to join Islamic States’ coalition against terror

Nigeria has told the Saudi government that it will not join the Islamic States’ coalition against terror.

President Mohammadu Buhari conveyed the position of the Federal Government to King Salman Bin Abdul-Aziz during bilateral meeting between the two leaders held in Riyadh. Buhari is on a state visit to Saudi Arabia and Qater.

On December 15, 2015, Saudi’s Defence Minister and Deputy Crown Prince, Mohammed bin Salman had announced Saudi has formed a coalition of 34 countries to coordinate a fight against terrorist organizations across the globe.

Nigeria was among the countries listed as a member of the coalition. The statement said: “Arab countries such as Qatar and the UAE will join the coalition, as well as Middle Eastern, Asian and African states including Pakistan, Malaysia, and Nigeria.”

The formal rejection of the offer was made public yesterday by presidential spokesperson, Garba Shehu, while explaining that the two leaders engaged in extensive discussions on regional and global issues, and agreed that terrorism posed a common threat to their states and would require close cooperation to prevail over the threats.

Garba quoted Buhari, who was making his first pronouncement on the invitation to join the coalition of Islamic states against terror spearheaded by the Saudis, as congratulating the Kingdom for forming the coalition, saying: “Even if we are not a part of it, we support you.

“I must thank the Kingdom of Saudi Arabia for the recent creation of a coalition to address the menace of international terrorism. Nigeria will support your efforts in keeping peace and stopping the spread of terror in your region.

“This is in consonance with our own commitment and ongoing efforts in seeking to stamp out Boko Haram terrorists from the West African sub-region and Lake Chad Basin Commission (LCBC).” On global terror generally, Buhari said: “International terrorism made a statement by attacking one of the advanced countries by carrying out an attack on Paris, in which 130 were killed.

“Now we have to come together to find a common solution to the problem of terrorism.” He thanked the Saudi government for continuing support to Nigeria in the fight against terrorism.

Turning to the menace that Libya has turned into, he expressed regrets that the late Libyan leader, Muammar Ghadhafi recruited, trained and armed citizens of many states in the Sahel region.

“With his fall, these mercenaries have returned to their countries doing nothing but to shoot and kill,” he said.

He cited Burkina Faso and Mali as the main victims but expressed happiness that the countries neighboring the Lake Chad had tightened their ranks to finish off the Boko Haram threat.

“Luckily, we have cultivated our neighbours. We are now working together against Boko Haram,otherwise the problem would have become worse,” he said.

In his remarks, King Salman commended the progress made by Nigeria in combating terrorism, and promised to give further support and assistance.

He welcomed the support of the Nigerian government for the new ant-terrorism coalition and implored the president to consider its full membership. King Salman pledged his full support and cooperation to Nigeria under its present leadership and directed all agencies of his government to follow up on the discussions. “I now instruct my team to go and sit down with your relevant agencies to push forward cooperation between our states,” the King said.


Add Comment