3D Hitech systems signs $500 million gas assets with NLNG, others to boost power supply in Ajaokuta Steel Company
The management of 3D Hitech Systems Limited said it has acquired $500 million gas assets to boost gas supply to power the rehabilitated 110mw Thermal Power Plants at the Ajaokuta Steel Company Limited (ASCL).
BusinessDay reports that the gas assets acquisition was part of strategies put in place by the authorities of the firm to curtail the challenges of incessant reduction of electricity megawatts in the country occasioned by shortage of gas supply.
This was contained in a statement made available to BusinessDay in Benin City by Muhammed Ibrahim, deputy general manager on public affairs and information of the company.
Ibrahim said the chairman of 3D Hitech Systems limited, James Jephathah gave the hint in Ajaokuta, Kogi state when he led other top Management staff on an assessment visit to the $30million ongoing rehabilitation works at the 110mw Thermal Power Plant.
James Jephathah who said that the rehabilitation works on the thermal power plant have attained 95 percent disclosed that the power plant would be commissioned in two weeks’ time to boost power generation in the country.
While noting that adequate and steady power supply is the bedrock of any nation, he added that the firm has also entered partnership with the Nigeria Liquefied Natural Gas (NLNG) and other gas companies to boost gas supply to power plants under the company with 100 million scores per day.
He also disclosed that the firm has signed another Memorandum of Understanding (MoU) for the construction of a 500mw power plant in Ajaokuta in line with the federal government current transformation agenda in the power sector.
He posited that the 500mw power plant would boost power supply in the country when connected to the national grid after completion.
According to him, the work of 3D Hitech Systems in the MoU is to rehabilitate the Thermal Power Plant of the Ajaokuta Steel Plant so that it can be energized for power generation. We have achieved 95 percent rehabilitation of the power plant and it would be commissioned in two weeks’ time to boost power generation in the country.
“The power plant is 110mw and the nation needs about 10,000mw. We are currently targeting 4,000mw in our operations across the Country,” he said.
In his remarks, the sole administrator of the Ajaokuta Steel Company Limited (ASCL), Isah Joseph Onobere who also emphasized that the power plant will be ready for commissioning in two weeks’ time said the MoU was signed with the power construction firm last May for the rehabilitation of the steel’s 110mw Thermal Power Plant.
Onobere said the Steel Plant has five MoUs currently, adding that they have commenced the process of the final testing of power plant facility with a view to commencing operation.
He however posited that the initial challenges militating against the operations of the company over the years have been overcome as they are trying to utilize the Steel Plant through Public Private Partnership (PPP).
He disclosed that the various sections of the plant where MoUs were signed would be put to use by the end of the 2015 fiscal year.
Recalled that the moribund 110mw Ajaokuta Steel thermal power plant was completed in 1987 shut down in 1994 and again commenced operation in 2005 after some rehabilitation works were carried out in 2008 when it was finally shut down due to funding challenges.
When completed the 110mw of electricity would be sold to the National Power Grid through a power purchase arrangement with the Kano Electricity Distribution Company (KEDC).
IDRIS UMAR MOMOH