🟢Top Egyptian Firms To Invest Over $1bn In Gas Powered Electricity Transmission And Distribution In The State
Exactly one year ago, the immediate past president of the Federal Republic of Nigeria Muhammad Buhari assented to and signed into law the constitutional amendment that removed electricity from the exclusive list thereby giving states the right to generate and distribute electricity. One year after nearly all state government have paid only lip service to this enormous opportunity to generate and distribute electricity to consumers.
However, Governor Hope Uzodimma as it appears now seems to be the only governor in Nigeria who has taken strategic steps to ensure that imo state generates electricity and distribute same so as to achieve constant uninterrupted 24hrs electric power supply for industries and households in Imo State.
It is a known fact that power generation through gas is the way to go and nearly all developed nations of the world rely on gas powered electric energy generation. It is also a known fact that Imo State has the largest gas deposit with 200 trillion cubic feet gas deposit. Nigeria is ranked 9th in the world among countries with the largest gas reserve and imo state holds 70% of that gas reserve. This makes imo state a global potential player in the global energy market.
This gas reserve is located principally in Assa North Ohaji in Ohaji Egbema Local Government of Imo State abbreviated as ANOH. The Assa North and Ohaji fields contain reserves of 4.3 trillion cubic feet (Tcf) of gas in addition to 215 million barrels (Mmbbls) of condensate. Seplat and Shell separately are currently processing the gas in that area through their multi billion dollar gas plants that would be commissioned in few months time.
Whereas Seplat ANOH gas processing plant project with a production capacity of 300 million Metric Standard Cubic Feet of gas daily costs $700 million, that of Shell having a production capacity of 600 Metric Standard Cubic Feet of gas daily, cost $3.5 billion.
Totalling a whopping $4.2 billion for both plants. It is expected that after the completion and commissioning of these plants, the electricity generation equivalent of the gas produced daily from these plants will be about 2.4 Giga Watt ie 2400 Mega Watts daily which is over 500% above the current annual electricity generation capacity of Nigeria which stands at 22,000 mega watt.
Expectedly this will mean that Imo State would soon become the power generation headquarter of Nigeria and the entire Sub-Saharan Africa. Apart from electricity generation, imo state will become the number one supplier of gas to other states Nigeria and countries in Sub Saharan Africa this becoming the energy hub of Africa.
However, there are three stages to electric power; generation, distribution and transmission. When electric power is generated it is then transmitted through lines to different catchment locations before it is distributed to the final consumer.
Since through the Federal Government, Seplat and Shell are in charge of the generation of electric power through gas in Imo State, the next stage will be the transmission and distribution to the final consumers in the state and beyond. Thus the Governor of Imo State, Distinguished Senator Hope Uzodimma travelled to Egypt to attract globally recognized gas powered electricity transmission and distribution companies to invest in Imo State energy sector.
Why Egypt one may wonder, Egypt generates almost all of its electricity from fossil gas and oil (almost 90% in 2022). Nearly 80% of electricity production is driven entirely by increasing fossil gas generation. Renewables made up 11% of the mix in 2022, with only 4.5% coming from wind and solar. Egypt is the largest fossil gas generating country in Africa, responsible for 45% of Africa’s gas generation in 2022. It is also second in gas-powered electricity generation amongst other Middle East and North Africa (MENA) countries. Egypt has many global multinational firms engaging in electricity transmission and distribution through the provision of electric power infrastructures.
Egypt also is the headquater of Africa Export Import Bank Afrexim with an imo state son as it’s president. Afrexim bank is a financial institution that provides huge funds for capital intensive investment for member Africa counties especially their grade A shareholders of which Nigeria is one.
So Governor Hope Uzodimma’s choice of Egypt as an investment destination for the purpose of transmitting and distributing electricity to consumers such as local industries and households in Imo State and beyond was strategic and visionary.
While in Egypt, Governor Hope Uzodimma succeeded in getting Afrexim to be interested in providing funding for this project up to the tune of over one billion United States dollars($1bn). He also on behalf of the state government signed a memorandum of understanding MOU with three global multinational gas powered electricity transmission and distribution giants with heavy operational presence in the middle east such as Qatar and United Arab Emirates. These multinational corporations are renowned for their expertise in electrical infrastructures construction and installation, oil and gas etc. They are ELSEWEDY GROUP, ADES, and HASSAN ALLAM HOLDINGS.
As soon as the Seplat and Shell gas plant is commissioned, becoming operational in the next few months, the electricity transmission and distribution infrastructures construction and installation will begin this heralding a new dawn for imo state all due to the strategic leadership approach to sustainable governance employed by Governor Hope Uzodimma of Imo State.
Whereas other governors are busy holding seminars and workshop on how to light up southeast Nigeria, and some are busy celebrating the commissioning of a private power generating firm without any concrete plan to transmitting and distributing same to households and local small and middle scale industries across the streets, for the acclaimed 24 hour power supply to be a reality and not just another political stunt, Governor Hope Uzodimma is walking the talk and most remarkably silently needing no public praise.
See Imo State becoming the Dubai of Africa in a few years to come!
Unegbu Victor-Wallace writes from Owerri Imo State.
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