This week Nigeria’s government signed a memorandum of understanding with Brazilian engineering and construction firm Benco Energie Ltd for construction of the plant, to be built in Bayelsa State in the south of the country.
Benco’s president, Rodrigo Badin, said the firm will commit between $800m and $900m to build the plant, which is expected to come online in three years’ time and is planned to consist of two gas turbines and two steam turbines.
“The location is Bayelsa because it is a terrain which is close to gas supply, transmission line and a river,” Badin said, “so we have all the right infrastructure that we need there.”
The plant will be the first to be built under an agreement between Nigeria and Brazil that gives Brazilian energy firms the opportunity to build at least 10 GW of production capacity in Nigeria.
The move comes as Nigeria’s power generation has recently climbed to 4500 MW alongside substantial spinning reserve, according to an announcement by power minister Prof Chinedu Nebo at the MoU signing ceremony, reported by website Hope for Nigeria.
Nebo said an increase in gas supply to the nation’s thermal power plants and increased stability in the transmission network have helped spur the recent growth.
“I am very sure that some of you if not all of you would have noticed that within the past few weeks we have averaged about 4500 MW of power delivery and it has been stable,” Nebo said at the ceremony. “And that means that most of you are now getting better power supply than you have had in the recent past. Gas is now coming in and we are expecting even a lot more of gas.
“The transmission facilities are being beefed up to strengthen and make more reliable and stable the national grid to be able to wheel out more power,” he added.