Energy

GE, Shell target to supply electricity to 200,000 Nigerian homes

Published

9 years ago

February 15, 2018

Hope for improved electricity supply in Nigeria may be rising with the deep involvement of an American giant in the energy sector, General Electric, to operate in partnership with Shell.

The General Electric (GE), and Shell Petroleum Development Company (SDPC), have entered into an agreement to develop the capacity building of the 650 Megawatts Afam VI Power Plant.

It was gathered that GE and SDPC signed a Multi- year Service Agreement (MYA), to improve output of the power plant located in the South East, Nigeria.

The agreement specifies that the plant was designed to generate electricity to provide energy for over three million homes when at optima operation. The operation should be able ensure availability, reliability and output for up to 200,000 Nigerian homes, at minimal operational costs.

The SPDC and the partners in the joint ventures, built the plant in a significant contribution to help meet Nigeria’s electricity need.

Dr. Philip Mshelbila, General Manager, Gas of SPDC, was cited to have explained: “At optimal performance, the Afam VI plant can provide up to 15 per cent of the total national grid-connected electricity, this agreement will ensure we reach this performance objective and deliver much needed power to the national grid.

“Since its commissioning in 2008, Afam VI Power Plant has delivered more than 25.97 million Megawatt-hour (MWh) of electricity into the Nigerian market and won an award by the United Nations for reducing carbon emissions through environment- friendly operations.”

It was indicated that the agreement will cover planned maintenance for the three existing GE GT13E2 gas turbines as well as one GE steam turbine. In addition, the order includes GE’s MXL2 upgrades to help increase the plant capacity by up to 30MW while increasing its efficiency.

Elisee Sezan, General Manager, GE’s Power Services business for Sub-Saharan Africa, was also cited to have remarked: “We have a long history of collaboration with Shell Petroleum, which has the largest footprint of all the international oil and gas companies operating in Nigeria, having supported the plant operations on power generation since its inception in 2008.

“With this latest agreement, we are working to bring improved performance and enhanced efficiency to their operations.”

It was also noted that in addition to increasing power output by up to 30MW, upgrades on the turbines are expected to deliver a combined-cycle efficiency increase, resulting in significant fuel savings and reduced CO2 emissions.

It was said that GE’s solutions will also extend inspection intervals for the gas turbines reducing maintenance and repair expenses—which, in turn, will reduce overall plant costs and result in improving profitability.

GE’s GT13E2 gas turbine offers industry-leading efficiency with up to 55 per cent efficiency levels in combined cycle operation, superior fuel versatility that enables a wide range of fuel compositions without hardware changes while substantially extending standard inspection intervals. Its unique operating profile capability offers the potential for financial savings by allowing customers to react quickly to fluctuating power demands, while keeping costs in line.

Lazarus Angbazo, CEO GE Nigeria, had pointed out that, “With less than 50 per cent of the population having access to electricity, Nigeria needs power. This agreement demonstrates GE’s unwavering commitment to continuously collaborate with public and private institutions to drive investment and innovative technologies in the power generation industry.”

GE has been operating in Nigeria for over 40 years, with more than 900 employees, 90 per cent of whom are Nigerians. The company has businesses spanning across key sectors including oil and gas, power, healthcare and rail transportation.