Markets

240MW Afam III Plant for Inauguration Next Month

Published

6 years ago

March 29, 2018

240MW Afam III Plant for Inauguration Next Month

The Managing Director/Chief Executive Officer, Afam Power Plc, Olumide Obademi, has announced that the $186m Afam III Fast Power project will be ready for inauguration next month.

According to him, construction work on the plant, which targets adding 240 megawatts of electricity to the country’s power grid, is currently in its final stage.

He said that the Afam III Fast Power consisted of eight turbines, explaining each of the turbines had a capacity of 30MW and put their cumulative capacity at 240MW.

The project, located on the premises of Afam Power Plc in Rivers State, would provide electricity for about 1.5 million households across the country, Obademi said.

The Afam III Fast Power Project is being executed by General Electric, after the firm had signed a Memorandum of Understanding with the Federal Government in 2016 for the speedy construction of a power plant within a space of about two years, as against the normal four years’ requirement for projects of similar magnitude.

He said the Federal Government signed the MoU with General Electric in 2016, requesting the GE to supply fast power in line with the government’s incremental electricity programme.

Obademi said, “By January 2017, the civil work commenced in preparation for the arrival of eight GE TM 2500 turbines and the auxiliaries with a total capacity of 240MW of 30MW each. Before the end of 2017, all the eight turbines and the auxiliaries had arrived at the site. Installation and assembling commenced immediately.

“Presently, the installation of the turbines and generators has been completed, while the installation of the auxiliaries is in progress and about 90 per cent completed. Similarly, the job on the 132KV switchyard for power evacuation is nearly completed.”

Obademi explained that the Afam Power Plc was chosen for the fast power project, as the old Afam III plants had been scrapped, removed and carted away.

“In addition, there are existing gas supply lines on this project site, nearness to gas flow station, power evacuation lines, among others,” he added.

Commenting on the delivery of the mobile power turbines at the station, the Chief Executive Officer, GE Nigeria, Lazarus Angbazo, said the GE was also providing electrical balance of plant, installation and inauguration services, as well as qualified training to the plant operators and the ministry of power technical team.

“This is a direct response to the Nigeria Energy Fast Power Intervention Initiative and we are committed to supporting the government’s strategy,” Angbazo said.

He noted that the TM 2500 generator, which was trailer mounted, could also be installed faster than traditional power plants, adding that this had made it suitable to meet Nigeria’s growing energy demand.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Crude Oil

Oil Prices Rebound on OPEC+ Output Delay Talks and U.S. Inventory Drop

Published

2 days ago

September 5, 2024

Samed Olukoya

Oil prices made a modest recovery on Thursday on the expectations that OPEC+ may delay planned production increases and the drop in U.S. crude inventories.

Brent crude oil, against which Nigerian oil is priced, rose by 66 cents, or 0.9% to $73.36 per barrel while U.S. West Texas Intermediate (WTI) crude appreciated by 64 cents or 0.9% to $69.84 per barrel.

The rebound in oil prices was a result of the American Petroleum Institute (API) report that revealed that the U.S. crude oil inventories had fallen by a surprising 7.431 million barrels last week, against analysts 1 million barrel decline projection.

The decline signals better than projected demand for the commodity in the United States of America and offers some relief for traders on global demand.

John Evans, an analyst at PVM Oil Associates, attributed the rebound in crude oil prices to the API report.

He said, “There is a pause of breath and light reprieve for oil prices.”

Also, discussions within the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling speculation about a potential delay in planned output increases.

The group was initially expected to increase production by 180,000 a day in October 2024.

However, concerns over softening demand in China and potential developments in Libya’s oil production have prompted the group to reconsider its strategy.

Despite the recent rebound, analysts caution that lingering uncertainties around global oil demand may continue to weigh on prices in the near term.

Energy

Power Generation Surges to 5,313 MW, But Distribution Issues Persist

Published

3 days ago

September 4, 2024

Samed Olukoya

Nigeria’s power generation continues to get better under the leadership of President Bola Ahmed Tinubu.

According to the latest statement released by Bolaji Tunji, the media aide to the Minister of Power, Adebayo Adelabu, power generation surged to a three-year high of 5,313 megawatts (MW).

“The national grid on Monday hit a record high of 5,313MW, a record high in the last three years,” the statement disclosed.

Reacting to this, the Minister of Power, Adebayo Adelabu, called on power distribution companies to take more energy to prevent grid collapse as the grid’s frequency drops when power is produced and not picked by the Discos.

He added that efforts would be made to encourage industries to purchase bulk energy.

However, a top official of one of the Discos was quoted as saying that the power companies were finding it difficult to pick the extra energy produced by generation companies because they were not happy with the tariff on other bands apart from Band A.

“As it is now, we are operating at a loss. Yes, they supply more power but this problem could be solved with improved tariff for the other bands and more meter penetration to recover the cost,” the Disco official, who pleaded not to be named due to lack of authorisation to speak on the matter, said.

On Saturday, the ministry said power generation that peaked at 5,170MW was ramped down by 1,400MW due to Discos’ energy rejection.

Crude Oil

Again NNPC Raises Petrol Price to N897/litre

Published

3 days ago

September 4, 2024

Investors King

The Nigerian National Petroleum Company (NNPC) Limited has once again increased the price of Premium Motor Spirit (PMS) from N855 per litre on Tuesday to N897 on Wednesday.

The increase was after Aliko Dangote, the Chairman of Dangote Refinery, announced the commencement of petrol production at its refinery.

The continuous increase in pump prices has raised concerns among Nigerians despite the initial excitement from the refinery announcement.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the 650,000 barrels per day refinery will supply 25 million litres of petrol to the Nigerian market daily this September.

This, NMDPRA said will increase to 30 million litres per day in October.

However, the promise of increased fuel supply has not yet eased the situation on the ground.

Tunde Ayeni, a commercial bus driver at an NNPC station in Ikoyi, said “I have been in the queue since 6 a.m. waiting for them to start selling, but we just realised that the pump price has been changed to N897. This is terrible, and yet they still haven’t started selling the product.”

The price hike comes as NNPC continues to struggle with sustaining regular fuel supply.

On Sunday, the company warned that its ability to maintain steady distribution across the country was under threat due to financial strain.

NNPC cited rising supply costs as the cause of its difficulties in keeping up with demand.