Oando ready to partner government on power projects

Leveraging on its experience as builder of two independent power projects, Oando Gas and Power is inviting state governments and other parties interested in building independent power plants to come and partner it.

Recently, the Lagos state government launched a 10.4 megawatts independent power plant which was built and executed on behalf of the government by Oando Gas and Power. The plant is expected to cater for the power supply needs of the state secretariat, Alausa and also electrify Awolowo Road, Ikeja and adjoining streets.

The power plant will supply uninterrupted 24-hour electricity to a total of 62 public buildings, 156 departments and over 40 offices thereby enhancing efficient service delivery at the seat of government and other public institutions.

Aside this, having the independent power plants in the Alausa would also boost power supply to some of the residents and companies and businesses close to Alausa as supply from the national grid that would have naturally being supplied to government facilities are now diverted to such businesses and residential areas.

This is certainly not the first power project Oando Gas and Power is executing on behalf of the state government. It also built the Akute Power and Project.

According to Bolaji Osunsanya, managing director and chief executive officer, Oando Gas and Power, the state government had earlier in 2010 launched the Akute Power Project which provides 24-hour electricity to the Lagos Water Corporation (LWC) water works located in Akute.

“The Akute intake facility is responsible for 80% of the water supply to Lagos. The water plant currently pumps over 130 million gallons of water daily to Lagosians. The plant also runs on environment-friendly natural gas also delivered by Gaslink Nigeria Limited’s existing gas distribution grid.”

Alausa Power Limited was set up as a special purpose company to design, build, operate and maintain a 10.4MW independent power plant for the Lagos State Secretariat complex and other buildings owned by the State. It is a 100% owned subsidiary of Oando plc. Total investment for the power plant is N3.2 billion and a project finance loan has been obtained for the development.

Oando plc is the primary promoter of the Alausa Power Plant through its subsidiary; Oando Gas & Power Limited.

Key components of the plant include, two units of 3.2MW GE Jenbacher J620 Gas Engines; two Units of 2.5MVA MTU Diesel Generators; Fuel/Oil storage and handling facilities; 900m Natural Gas Spur line; Pressure Reduction and Metering System.

The plant was designed, constructed, owned, operated and maintained by Alausa Power.

Electric Power will be generated at the plant and supplied to LASG’s interconnection point from where it will be distributed to the LASG Secretariat and buildings in the Alausa environs as well as street lights on Awolowo Road.

The primary fuel for the plant will be natural gas while the diesel would be used as secondary fuel for backup situations. The engineering procurement and construction (EPC) contract for the development of the plant was executed by a local Nigerian contractor.

The power plant would utilise natural gas as the primary fuel. As such the project will contribute to the utilisation of gas in the domestic market and reduce the amount of gas flared.

Other Nigerian subcontractors were engaged to carry out the following activities: environmental impact assessment; geotechnical survey; line pipe laying to transport natural gas to site (Gaslink); civil works.

The examination of the actual value of apparent-power required by different loads enables the establishment of a declared power demand which determines the contract for the supply of electrical energy and it is a necessary preliminary step in the design of electric power installation.

Inaugurating the plant, Governor Babatunde Fashola (SAN) said the construction of the environment-friendly plant made Lagos State the first tier of government in Nigeria to run its own power plant.

“The Alausa IPP would also help government to lift off these offices from the national grid so that the share of light which the offices were formerly consuming will be diverted to the public consumption pool so that Lagosians can enjoy improved and stable electric power supply in their offices, workshops, market place and homes.

By: Olusola Bello