Nigerian Bulk Electricity Trading (NBET), a public liability company owned by the government of Nigeria, has inked a power purchase agreement (PPA) with Qua Iboe Power Plant (QIPP) to develop a $1.1bn power plant in Akwa Ibom.
The move comes after rights to develop the project were sold by Mobil Producing Nigeria (MPN) to QIPP investors, which include the Black Rhino Group, Dangote Group and the Nigerian National Petroleum (NNPC).
However, MPN has a 20-year gas sales agreement in place with the new investors to provide about 400 million standard cubic feet per day of gas to the new facility.
The gas-fired facility will have a capacity of 540MW and is expected to be operational in 2021. The project is expected to reach financial close in the second quarter of 2018.
Black Rhino chairman Muhammadu Sanusi II said: “Within the next months, we will achieve a financial closure to bring in about $1.2bn worth of direct investment into Nigeria.”
Dangote Group CEO Aliko Dangote added: “By closing the gap between Nigeria’s generation capacity and the energy required to underpin economic growth, we are supporting Nigeria’s future industrial growth.”