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Commissioning Ceremony Of Alaoji Power Station

By His Excellency Goodluck Ebele Jonathan Gcfr President, Federal Republic Of Nigeria

March 2015 - Nigeria

Introduction

By MR. JAMES ABIODUN OLOTU,
Managing Director & Chief Executive officer, NDPHC

The National Integrated Power Project (NIPP)

The National Integrated Power Project (NIPP) was conceived in 2004 as a fast-track government funded initiative to add significant generation, transmission and distribution capacity to Nigeria’s electricity supply system.  This is sequel to the power sector reform initiative aimed at transforming the inefficient public-sector run monopoly into a more efficient competitive electricity industry that is private sector-led but with adequate government regulation to ensure that the industry growth is aligned closely with the nation’s economic and social development objectives.

To ensure the smooth and sustainable take off of the power sector reform agenda, it was considered necessary that the existing power infrastructure capacity which was at the verge of collapse had to be urgently shored-up with a massive but well-coordinated government investment in all the facets of the supply chain.  A fairly stable electricity industry with a demonstrable growth potential was considered the basis for creating the enabling environment that will attract the much needed private sector investments in the industry and hence guarantee the success of the sector reform agenda.

The National Economic Council approved the funding of NIPP projects from the Excess Crude Oil Account which belongs to the entire Federation jointly, and the setting up of Niger Delta Power Holding Company (NDPHC) as a special purpose vehicle for managing the investment in the projects, on behalf of the Federal, State and Local Governments, in line with best-practice private sector corporate governance.  The shareholders of NDPHC are therefore the Federal and all the 36 State Governments (who also represent the interests of the local governments).

The generation component of NIPP was conceived as complete gas-to-power packages that will harness the underutilized natural gas reserves in the Niger Delta region to produce the much needed electricity for the nation’s economic growth. Apart from the abundance of natural gas as fuel, gas turbine power plants have the shortest construction periods and hence are best suited for the emergency intervention in power generation capacity improvement as conceived by the government.  The generation projects portfolio of NIPP is made up of 10 power station (approximate rated capacities at ISO conditions): Calabar (630MW), Egbema (378MW), Ihovbor (504MW), Gbarain (252MW), Sapele (504MW) Omoku (252MW), Alaoji (1076MW), Olorunsogo (750MW), Omotosho (500MW) and Geregu (495MW). The projects are also accompanied with gas pipeline constructions from ELP system and the gas fields at Adanga off shore, Egbema, Izonbe, Gbarain-Ubie, Oredo, Oben to the power plant including the required gas pressure reduction and metering stations (GPRMS).

Alaoji Power Station

The Alaoji Combined Cycle Power Plant Project is a Two-Phased Project made up of 504.4MW (ISO) Total Output for the Simple Cycle Power Plant through 4 gas Turbine Units of 126.1MW capacity each, and 570MW (ISO) from two Steam Turbines.

The Project was originally conceived as a 378.3MW (3 X 126.1MW GE 9171E General Electric Frame 9E) Open Cycle Power Plant to be located adjacent to the existing PHCN’s Alaoji 330kV Transmission Station.  It was later decided to increase the project scope into combined cycle configuration for improved efficiency.  The additional scope is to be executed as the second phase.  This necessitated a fourth Gas Turbine to be added so that each can have a Heat Recovery Steam Generator (HRSG) fired by its exhaust heat (with provisions for supplementary direct gas firing) and the steam produced from two HRSGs used to drive a 252.5MW Steam Turbine. The space requirement for the additional equipment led to the relocation of the project from its initially intended site to Umuobasiukwu nearby.

All the four gas turbine units and all the Balance of Plant equipment necessary for the Simple Cycle Gas Turbine Phase are now fully completed with a total capacity of 504.MW (ISO).  This is the phase being officially commissioned today.  Construction work on the Combined Cycle Phase is continuing.

The project was initiated by the defunct Power Holding Company of Nigeria (PHCN) who awarded the Engineering, Procurement and Construction (EPC) contract to Messrs Rockson Engineering Company Limited in 2005.  The Consultancy Service for this phase of the project was awarded to the consortium of Messrs Parsons Brinkerhoff Ltd (PB Power) of United Kingdom and Messrs Jiyoda Engineering Nigeria Ltd. To ensure continuity of funding, the project was transferred to NIPP in 2007 with NDPHC taking over its admistration.  The Project Consultancy for the second Phase was thereafter awarded to Messrs Steag Encotec West Africa Limited (SEWA).

Technical details of Main Plant Components

Gas Turbines:
  • Number: 4 Units
  • Manufacturer: General Elcetric (GE), France
  • Model Type:  GE Frame 9.GT9171
  • Output ratings: 126.1MW each (at ISO conditions: 150 C, 60%RH, 1atm), new line 115MW each (at average site conditions: 300 C, 74%RH, 1atm)
Generators: (4 Nos.)
  • Manufacturer: Brush Electrical Machines,
  • Model: BDAX9-450
  • Rated output: 141MVA, 15kV, 3000rpm, 50Hz, air cooled.
Generator Transformers: (4 Nos)
  • Manufacturer: Hyundai Heavy Industries Co. South Korea
  • Voltage Ratio: 345/15kV ± 2x 2.5%, YNd1
  • Power Rating: 102/170 MVA, ONAN/ONAF
Switchyard:
  • 330kV: 3 diameters of one-and-half breaker double bus arrangement.
  • HV Power Evacuation: Interconnection of 330kV Bus existing
  • TCN’s Alaoji 330/132kV substation.

Note: Power will be wheeled out from Alaoji substation via Alaoji-Owerri-Onitsha and the ongoing Alaoji-Ikot Ekpene 330kV double circuit lines to the rest of the National Grid.

Gas Source:
  • Gas from Accugas Uguo Fiel and Shell delivered through NGC’s easter pipeline network.
  • PRMS capacity: 230MMscf/day

Program Of Events

09:00am

Arrival of Guests
Performance by the Cultural Troupe

10:00am

Arrival of His Excellency, Goodluck Ebele Jonathan, GCRF, President, Federal Republic of Nigeria, followed immediately by the National Anthem

10:10-:1510am

Welcome Address by the Managing Dircetor and CEO of  NDPHC Mr. James Olotu

10:15-10:20am

Remarks by the Managing Director and CEO of Rockson Engineering

10:20-10:25am

 

Remarks by the Honourable Minister of Power Prof. Chinedu O. Nebo

10:25-10:30am

Address by the Executive Governor of Abia State & The Chief Host, His Excellency, Governor Theodore Orji

10:30-10:40am

Remarks by His Excellency, Goodluck Ebele Jonathan, GCFR, President, Federal Republic of Nigeria

10:40am

 

Official Commissioning by Mr. President

10:50-11:00am

 

Presidential tour of the plant (to be handled by the Power Plant Manager)

11:00am

  

National Anthem and Departure of Mr. President

11:10am

  

Refreshments

Address Of Welcome

By Mr James A. Olotu, Managing Director/Chief Executive, Ndphc

Your Excellency, Goodluck Ebele Jonathan, GCFR, President of the Federal Republic of Nigeria

Your Excellency, Arc. Namadi Sambo, GCON, Vice President of the Federal Republic of Nigeria and Chairman, Board of Directors of Niger Delta Power Holding Company Limited (here represented by …….)

  • Your Excellency, Ochendu Theodore Orji, Executive Governor of Abia State
  • Your Excellencies, the executive Governor members of the Board of NDPHC,
  • Your Excellencies, the Executive Governors of neighbouring states and other members of the National Economic Council,
  • Your Excellency, Alhaji Adamu Muazu, National Chairman of PDP,
  • Distinguished Senator, Philip Adudu, Chairman, Senate Committee on Power and Steel,
  • Hon. Patrick Ikhariale, Chairman, House of Representatives Committee on Power,
  • Honourable members of the National Assembly present,
  • Honourable Minister of Power, Prof. Chinedu Nebo
  • Members of the Federal Executive Council,
  • Honourable Members of the Abia State House of ASSEMBLY,
  • Members of Abia State Executive Council,
  • Members of the Diplomatic Corps,
  • Permanent Secretary, Federal Ministry of Power, Ambassador Godswill Igali, OON,
  • My Lords, Spiritual and Temporal,
  • Your Royal Highnesses, Igwes
  • Captains of Industry,
  • Gentlemen of the Press,
  • Distinguished Ladies and Gentlemen.

It gives me a great pleasure to once again welcome you all and especially, His Excellency, Goodluck Ebele Jonathan, GCFR, President of the Federal Republic of Nigeria, to the official commissioning of Phase 1, 504 MW Simple Cycle Gas Turbine Power Plant. This is the fourth of the ten power plants being constructed by the Niger Delta Power Holding Company Limited (NDPHC) under the National Integrated Power Project (NIPP). Your Excellency, You will recall that in October 2013 two of these NIPP power stations namely the 434MW Geregu plant in Ajaokuta LG of Kogi State and 500MW capacity Omotosho 11 in Omotosho Okitipupa Local Government Area of Ondo State respectively were commissioned in succession by your Excellency. Barely four weeks ago, specifically on the 20th of February 2015, the world witnessed the commissioning of another brand new state of the arts station, this time the Olorunsogo 11 750MW combined cycle gas turbine power plant in Olorunsogo, Ifo Local Government of Ogun State, Mr. President Sir, today you are about to top the ladder of excellence by commissioning the 504MW Phase 1 segment of the 1074MW Alaoji combined cycle power station here in Umuobasiukwu, Alaiyi autonomous community of Abia State. All these commissioning and more to come are fruits of the NIPP programme, you, Mr. President, revived from murky waters and gave life to in 2009.

Sir, let me put it on record that not only did you revived NIPP projects, you gave the scheme life and actively supported and nurtured it to fruition as we all are witnessing today thus changing its history from grass to grace. Established in 2004, NIPP, the Project arm of NDPHC became an intervention power infrastructure capacity expansion programme of the three tiers of Governments of the Federal Republic of Nigeria under the leadership of the Federal Government with 47 per cent equity control leaving the States and Local Governments of Nigeria with 53 per cent equity control.

Therefore, the commitment of your Excellency and dedication of men and women in your team to address the huge infrastructural gap in the power sector and position Nigeria’s Electricity Supply Industry (NESI) properly for the successful transition from its erstwhile state-run monopoly status to being a private sector driven competitive industry were clearly in tandem with the government’s Transformation Agenda to re-invigorate the electricity supply industry in Nigeria a veritable bedrock for the country’s industrialization upswing. I stand here today with joy in my heart as a representative of this organization and particularly grateful that today, we are witnessing another wonderful fruit of the hard work, determination, special, uncanny as well as uncommon will and wisdom of Mr. President to see through the difficulties affecting the NIPP, lead and join forces with the States and Local Governments of Nigeria to revive and re-invigorated NIPP when it ran into stormy waters with its funding arrangement from the Excess Crude Oil Account between 2007 and 2009. Mr. President, permit me to recall that as the then Vice President, Chairman of the National Economic Council (NEC) and appointed First Chairman of the Board of NDPHC, you superintended the numerous delicate and critical meetings that legally resolved funding issues that then bedeviled the NIPP, you put in place a management structure suitable and agreeable to all its shareholders for this first time mega joint venture enterprise run with a private sector best principles.

You started this by physically and personally leading your team to the major project sites, incidentally starting with this very Alaoji Power Station and the relevant ports thus facilitating resolution of transport issues, road inadequacy matters, port clearing difficulties leading to the decongestion that we know today. This is gladly one of the reasons we are here today to celebrate your making of history in the power sector of Nigeria, the adding of another 504MW power to the good people of Nigeria in support of your Transformation Agenda for this great Nation. It has always being your passion and indeed your understanding that power determines in no small measures the level of development of any nation. Nations with more power infrastructure have always been the better and wealthier ones Ceteris-per-Ribus. Indeed, history will record that never have we had it so good, to successfully commission four brand new power plants adding about 2,188 MW within two years while also basking in the successful privatization of the erstwhile Power Holding Company of Nigeria with the expectation of what is today a private sector driven power industry anchored on the 2005 Electricity Power Sector Reform Act are indeed unprecedented achievements.

The Alaoji Combined Cycle Power Plant Project you are about to commission today is a two-Phased Project made up of 504.4MW (ISO) Total Output for the Simple Cycle Power Plant through 4 gas Turbine Units of 126.1MW capacity each, and 570MW (ISO) from two Steam Turbines. The Project was originally conceived as 378.3MW(3X126.1MW GE 9171E General Electric Frame 9E) Open Cycle Power Plant to be located adjacent to the existing PHCN’s Alaoji 330kV Transmission Station. It was later decided to increase the project scope into combined cycle configuration for improved efficiency. This necessitated a fourth Gas Turbine to be added so that each can have a Heat Recovery Steam Generator (HRSG) fired by its exhaust heat (with provisions for supplementary direct gas firing) with the steam produces from two HRSG’s used to drive 2x252.5MW Steam Turbines. The space requirement for the additional equipment led to the relocation of the project from its initial intended site Umuobasikwu nearby. All the four gas turbine units and all the balance of plant equipment necessary for the Simple Cycle Gas Turbine Phase are now fully complete with a total capacity of 504 MW (ISO).

Your Excellency Sir, this is the phase being officially commissioned by you today. Construction work on the combined cycle phase is continuing and by the time it is completed it will bring the entire Alaoji Combined Cycle Power Station capacity to 1,074MW, the largest among the ten NIPP power stations. The project was initiated by the defunct Power Holding Company of Nigeria (PHCN) who awarded the Engineering, Procurement and Construction (EPC) contract to Messrs Rockson Engineering Company Limited in 2005. The Consultancy Service for this first phase of the project was awarded to the consortium of Messrs Parsons Brinkerhoff Ltd (PB Power of united Kingdom) and Messrs Jiyoda Engineering Nigeria Ltd. To ensure continuity of funding, the project was transferred to NIPP in 2007 with NDPHC taking over its administration. The Project Consultancy for the second phase was thereafter awarded to Messrs Steag Encotec West Africa Limited (SEWA). The turbines are GE frame 9.GT9171, with output rating of 126.1MW each (ISO conditions) and power generated will be evacuated through interconnection of 330kV bus to existing TCN’s Alaoji 330/132kV substation.

Note: Power will be wheeled out from Alaoji substation via Alaoji-Owerri-Onisha and the ongoing Alaoji-Ikot Ekpene 330Kv double circuit lines to the rest of the National Grid. Let me put on record that evacuation of the entire power from this station will be vide two transmission networks. The first of these is The Double Circuit 330kV lines from Alaoji in Abia State, through an upgraded Owerri Substation in Imo State and the new Ikot-Ekpene Sub-Station to Ikot-Abasi (Akwa-Ibom State)| all the way through Ugwaji SS to Enugu and Makurdi/Jos in Enugu, Benue and Plateau States respectively. These are all NIPP projects under the EPC works of Messrs Energovod Ltd, Rockson Engineering, Cartiark Engineering, Energo Nig Ltd. and North China Engineering Company and superintended by Messrs Colenco of Switzerland as Project Consultants will be completed in May 2015 God willing, sufficient portions of these have been completed to allow for current evacuation of power. The second Double Circuit Transmission lines and Sub-Station is through the ongoing double circuit 330kV lines and associated Sub-Stations passing from the new Alaoji Switchyard through the existing Alaoji Sub-Station to Owerri Sub-Station and all the way to Nnewi and Onitsha in Anambra State to the Grid through which power will be wheeled to the other parts of Nigeria. These new NIPP projects being undertaken by Messrs Rockson Engineering and North China and superintended by Messrs Gopa-Intec of Germany as project Consultants will on completion enable desired flexibility and capacity to more than wheel all the power from Alaoji as planned and its expansion under private entrepreneurs and other potential power plants in this area to the grid. Gas supply is currently from SPDC and Messrs Accugas with Total Oil & Gas supplies expected soon. Let me also put on record that under your leadership NDPHC/NIPP went through the most transparent and successful 80 per cent share sales transaction involving all Her 10No power plant which includes this particular one. The aim is to put the business of running and expanding the power plants in the hands of the private sector for sustainable and professional operations and management. The process will soon be closed.

I wish to commend the Board of Directors of NDPHC under the able leadership of His Excellency, Arc, Namadi Sambo, GCON, the Vice President of the Federal Republic of Nigeria for providing the direction, guidance and drive to achieve the vision of the initiator of the NIPP program and astutely drive the projects in the footsteps you set before him. We are particularly lucky to have the person of His Excellency, Arc. Namadi Sambo, who, as the Executive Governor of Kaduna State then representing the North West region, has been a member of NDPHC Board since its inception, to take over from His Excellency Dr. Goodluck Jonathan, GCFR, as the Chairman. Members of the Board of NDPHC have remained focused and have continued to deliver on these projects after the solid foundation you have laid. I also wish to thank the government and the good, supportive and peace loving people of Abia State, especially the communities around the project site in Umuobasiukwu, Alaiyi Autonomous communities in Ugwunagbo Local Government Area of the state for their patience and cooperation towards the successful and timely realization of this edifice today. It should be noted that Abia State, like her other partners as shareholders of NPHC, has under your watch, released in full, her financial contributions to NIPP project funds leading to this success story today. Commendation should also per right go to other State and Local Governments for their sacrifices and contributions towards funding and supporting the NIPP initiatives. All of them are proud owners of Share Certificates issued by your Excellency arm President evidencing same special appreciation must go to all the communities in all the states mentioned above for giving NDPHC/NIPP the land upon which this power plant and indeed all the transmission projects referred to earlier are built or being constructed. Their cooperation and sacrifices in making the projects successful will remain indelible in our minds and appreciated by Nigerians forever. Here again trusting them for the security of these national assets for the sustainable and uninterrupted use of all Nigerians today, tomorrow and for all times. I also wish to complement the support and assistance of members of the Power Committees of the Senate and House of Representatives under the leadership of Dist. Senator Philip Aduda and Hon. Patrick Ikhariale respectively for their advisory and solid project monitoring roles and understanding. I specially recognize the positive roles played and continually being played by the Hon. Minister of Power and Petroleum and their teams in NDPHC, GACN, NGC, NERC, TCN etc in the numerous and continuing interventions that assure the completion of our Gas Infrastructures, availability of the gas molecules and the completion of transmission projects without which this success story will have remained a myth.

Finally, I wish to thank and commend His Excellency, Mr. President, for his total conviction in making power a number one priority in the country today and to commend your drive to pursue this passion in support of your Transformation Agenda for the people of Nigeria. It takes a excellent man like you to excellently execute and complete an excellent project. We join hands together and salute such Excellency Mr. President. Once again and in answer to your often-asked questions on each occasion we met, this is a testimony to the electric power you demanded for. All glory to God for the completion of this wonderful project to which you are all here welcomed to witness. Who says Nigeria is not progressing under the transformation Agenda of our dear President Goodluck Ebele Jonathan?

Your Excellency, Mr. President Sir, welcome to your completed phase 1,±504 MW Simple Cycle Gas Turbines Alaoji Power Plant Project in Abia State.

Thank you.

James Abiodun Olotu Managing Director/Chief Executive, NDPHC