Forte Oil Signs $83m Contract With Siemens To Upgrade Power Plant | Independent Newspapers Limited
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Forte Oil Signs $83m Contract With Siemens To Upgrade Power Plant

Posted: Jun 30, 2015 at 12:21 am   /   by   /   comments (0)

By Phillip Oladunjoye,  Lagos

 

Forte Oil, one of Nigeria’s energy firms, has said that it had signed an $83 million contract with Siemens to upgrade its 414 megawatt gas-fired power plant and that the work would be completed next year.

According to a report by Reuters, Forte Oil, which also has interests in fuel retailing, was one of several firms to buy government power assets two years ago, sold as part of a privatisation meant to end decades of blackouts in Nigeria.

Forte Oil had through Amperion Power Distribution Company Limited, its power generation arm, acquired majority stake in the 414MW Geregu Power plant located in Kogi State of Nigeria, under the government-led privatization programme in the power sector.

The Geregu Power Plant was commissioned in 2007 with three Siemens V94.2 open cycle gas turbine power generation units totaling 414MW of installed capacity. The three operational units namely GT11, GT12, and GT13 have a rated capacity of 138MW each. The station received gas from two pipelines, a 24-inch wide old pipeline and 36-inch wide 136 KM long new pipeline from the Natural Gas Treatment Plant. These, the company said, are able to satisfy the fuel requirements of 3 units running on a full load of 414MW.

Forte Oil had said recently that it was committed to expanding the 414megawatts Geregu Power Plant to 600MW in the short to medium term.

The company, had in a statement signed by the Head, Brand and Corporate Communications, Mr. Odion Aleobua, said that it had taken full operational control of the power plant since it was handed over to it by the Federal Government on November 1, 2013.

Forte Oil said it acquired Geregu Power as part of its diversification from primary business of petroleum products marketing, adding that it planned to carve a niche for itself in power generation by increasing the current capacity of the plant to over 600MW in the short to medium term.

The optimisation, according to the company, will be a demonstration of the company’s commitment to bridge the current power deficit in Nigeria and help to actualise Nigerians’ expectations from the power sector.