The Nigerian Electricity Regulatory Commission (NERC) has awarded Trombay Power Generation Ltd a power generation license to oversee a 500MW coal-fired power plant located in the Wajari Village.
According to the Daily Trust, the Commissioner of Legal Licensing and Enforcement, Dr Steven Andzenge said, “this is a milestone in the sense that it is in line with NERC’s objective of diversifying our fuel source”.
Integrating various resources into the country’s energy mix is essential to ensure demand is met. The Nigerian National Petroleum Corporation (NNPC) said that the country’s gas demand is expected to increase from its current two billion cubic feet (bcf) a day to 10 bcf by 2020, Platts.com reported.
“The federal government and the NNPC have embarked on a very aggressive implementation of the gas master plan to meet the astronomical increase in gas demand”, NNPC CEO Joseph Dawha said.
Dawha added that 500km of gas pipelines have been installed and plans are in place to add more in the next two years.
Nigeria is the 9th largest gas producer in the world, with estimated gas deposits of 180 trillion cubic feet. The under usage of the product is due to lack of infrastructure in the market place.
Last year, Nigeria entered into an agreement with eight oil companies to supply natural gas to 10 local power plants in attempts to offset the high energy demand. The companies include ExxonMobil, Shell and Seplat.