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Saturday, 5 November 2016

Power Supply: World Bank Sign Multi-million Dollar Gas Supply Agreement

The federal government and the world bank have signed an agreement to boost energy supply by 561

Vice president Yemi Osinbajo describes the deal as significant for the country, as it would encourage investment in gas infrastructure.

The Federal Government and the World Bank on Thursday signed a Partial Risk Guarantee (PRG) gas supply agreement.
The Agreement is for the supply of gas to the $500 million Calabar gas plant to boost energy supply by 500 megawatts.
Vice President Yemi Osinbajo, who witnessed the signing of the agreement at the Presidential Villa, said the event is very significant for the country.
He noted that it would encourage further investment in gas infrastructure.

Osinbajo said government expected that going by the current power situation, the investment was worth celebrating.
He added that government was grateful to the World Bank and the investors in the Calabar plant for coming to the aid of the country in its quest for more energy supply.
He said:
“We are looking forward to the multiplier effect that will come from this investment.’’

The Vice President noted that the gas plant traversed Rivers, Cross River and Akwa Ibom States, saying the investment portends greater things happening in the future.
Managing Director, Niger Delta Power Holding Company (NDPHC) Ltd., Chiedu Ugbo said the agreement was to tackle the gas supply issues in the plant.

The plant was built to generate about 561 megawatts of electricity.
He stated that the agreement was to enable the gas supplier to supply about 131 million cubic feet of gas daily to the Calabar plant from its field in Akwa Ibom.
Mr. Ugbo said it was the first PRG agreement for the payment security for the supply of gas to cushion any breach in payment.

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