Vice President, Prof. Yemi Osinbajo Thursday supervised the signing of the agreement at the Presidential agreement on the supply of gas to the Calabar Gas Plant to boost energy supply by 500 megawatts with the World Bank at the Villa.
Speaking shortly after sealing the deal, Osinbajo said the event was very significant for the country, as it would encourage investment in gas infrastructure, pointing out that “going by the current power situation, the investment was worth celebrating”.
Details show that the agreement for a Partial Risk Guarantee (PRG) between Niger Delta Power Holding Company (NDPHC) and the World Bank was signed to secure the supply of about 130 million cubic feet per day of gas to NIPP Calabar Plant by Seven Energy, an integrated gas company in Nigeria.
Currently, the group is investing about $500 million in the construction of gas processing facility at the Uquo Field in Akwa Ibom State.
Vice president added that “It will encourage investment in the gas infrastructure and we are certainly looking forward to the multiplier effects that will come from this.
“This is a very significant event for us and as we all know this is the first PRG for gas that we are signing
“Given the current power situation, we expect that this gas that will go into the Calabar plant will provide about 500 megawatts of power which is very significant given our current situation.
“The gas pipeline itself is a feat of some sort. I am told that it traverses five rivers. So, that by itself is worth celebrating. Even if all we get from social media this evening is an engineering feat, we will be quite pleased with that,” Professor Osinbajo stated.
While commending the World Bank and other partners for the confidence in the present administration, especially in guaranteeing investment worth about $500 million, he called on the core investor to deliver the scheme on time to fast track economic recovery on time.
The Minister of Finance, Mrs Kemi Adeosun, signed the agreement for the Nigerian government while the World Bank was represented by its Country Director, Rachid Benmessaoud.
In his address to the media after the event, Managing Director of the NDPHC, Mr Chiedu Ugbo, told reporters that the development was significant in the development of Nigeria’s gas to power programme.
He added that “We have had gas supply issues in the Calabar plant. But now the gas supplier is supplying the gas molecules there and they just concluded a pipeline from their field in Akwa Ibom State to the Calabar power plant”.
