Oil & Energy
Egbin’ll Function To Installed Capacity After Repairs – CEO
The Chief Executive Officer
of Egbin Thermal Plant, Mr Mike Uzoigwe, says the repairs of its sixth turbine unit (ST-06), will add 220 Megawatts (MW) to the national grid.
Uzoigwe said this when he inspected the ongoing repairs of the turbine in Lagos recently.
According to him, the plant may have waved over, its installed capacity generation challenges barely seven years down the line.
He said the power plant, which had an installed capacity of 1,320 MW, had suffered setback for some years due to ageing parts and paucity of funds to upgrade the facility.
The Tide source, however, reports that the plant was generating about 700 MW before it experienced a system collapse.
Uzoigwe, who confirmed the system collapse, added that power would be restored in a short while due to its new black-starting mechanism.
“Before now, system collapse takes power plants in Nigeria about five days to restore electricity, but the black-starting technology would make it possible within hours.’’
Uzoigwe, who conducted journalists round the plant, expressed joy that the plant would be operating at full capacity after about seven years of partial operation.
He said the plant was constructed about 30-years ago to operate on six turbine units at 220 MW each, until 2006 when the sixth unit exploded due to some water tube challenges.
The chief executive officer said the contract for repair was awarded to the Original Equipment Manufacturer, Hitachi of Japan.
According to him, the company has spent so much money to secure some parts of the plant.
He said between 2011 and 2012, it ordered and replaced all the cannibalised spares and also awarded contract for the final repairs at approximately N1 billion.
“Unit six job will last for 90 days after which the unit should be handed over completely repaired and ready for operation.
“Work effectively started on July 1, 2013, and still going on. This will lay to rest the rumours that money meant for ST-06 repairs was diverted some times in the past,” he said.
He explained that the delay in commencing the job was because it did not get the nod of the Bureau for Public Procurement (BPP) early enough to award the contract.
This, he explained, was due to BPP’s exhaustive procedure of making sure the contract price was right.
“We have started anyway and it is hoped we will deliver on time. We are in the interim discovering everyday some other parts we need to replace.
“This will cost some more money and we will soon take it up with the Minister of Power to source for more funds,” he said.
Uzoigwe welcomed the privatisation exercise, adding that although the takeover of the assets would soon happen.
According to him, the management has a philosophy of continuation with all what it is suppose to be doing until the day the new investors takeover.
Reports say that works were ongoing at the plant as experts handling different parts of the turbine were seen laying some of the new parts strategically around the affected turbine.
Uzoigwe, who gave estimates of parts of the plant, accordingly, said repair of damaged boiler was awarded to KEPCO at 17.95 million dollars which was almost 100 per cent completed.
According to him, the dry storage part was awarded to Igodi at N9.8 million, while the emergency repairs of generator rotor and BFP motor rotors were awarded to Maurubeni at 6.79 million dollars.
He said the total replacement of the damaged reheater outlet coils and comprehensive inspection of reheater inlet coils were awarded to KEPCO at 4.94 million dollars and N74. 61 million, respectively.
He added that the supply of new AVR cubicle for thyristor excitation system was awarded to Marubeni at 117.9 million Yen, while the repair of LP turbine rotor journals was awarded to G.E at 1.52 million dollars.
According to Uzoigwe, all the listed parts are almost 100 per cent completed, except for the supply of cannibalised items which are at 80 per cent completion.
Oil & Energy
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Oil & Energy
Power Supply Boost: FG Begins Payment Of N185bn Gas Debt
In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.
The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.
According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.
Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.
The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.
In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.
“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.
Oil & Energy
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