Federal government has signed a Memorandum of Understanding (MoU) for the construction of a 1,000mw power plant in Katsina state with Strancton Limited.
It also signed another one with Greenville oil and gas limited for the supply of Liquefied Natural Gas (LNG) to the Kaduna power plant.
Speaking after the signing ceremony in Abuja, minister of power, Prof. Chinedu Nebo, said due to the importance attached to the two projects to Mr. President’s transformation agenda, he had to make mention of them at the presentation of 2014 ministerial platform.
He said the proposed power project was highly innovative as its promoter, Strancton, working with Katsina state government,would utilise gas from Niger republic to fire its proposed plant.
He said such innovative project was a call for to take full advantage of gas reserves, by building infrastructure for its utilisation.
He also observed that gas alone can assist the country’s economic development immensely even without oil.
He promised to support the project, saying it was another way to stabilise the nation’s grid system by making it robust and active.
He noted that the promoters had brought to fore new ideas of how to provide cheaper fueling, saying it was now clear that one does not need to locate a power plant next door to one’s source of gas.
He challenged other states to emulate the Katsina state initiative, by keying into the federal government privatisation agenda in the power sector and investing in the sector in partnership with the private sector.
Speaking on behalf of the two companies, CEO of Strancton limited, Chief Edozie Njoku, said the plant was the first gas pipeline-fed electricity project in northern Nigeria between Katsina state government and Consortium of General Electric (GE), Vellbridge oil, gas and natural resources limited and other private partners.
He said the initial target for the first phase was 300mw with a 30-month construction time-table, saying however, that the plan was to move steadily to 1,000mw in years ahead.
He said the estimated $1 billion project would lead to reduced energy costs, industrial development, creation of skilled jobs, build entrepreneurship and in general, improve quality of life.