Oando Kwale power station

From Global Energy Monitor
Part of the Global Gas Plant Tracker, a Global Energy Monitor and Center for Media and Democracy project.

Oando Kwale power station is a 500-megawatt (MW) gas-fired power plant expansion under construction in Delta State, Nigeria. The plant being expanded is called the Kwale-Okpai Independent Power Plant or the Kwale IPP,[1] and the expansion has been referred to as the Kwale Powerplant,[2] Kwale IPP Phase II[1] and the Okpai Phase II Independent Power Project (IPP),[3] depending upon which company is talking about it.[4]

Location

The map below shows the exact location of the proposed power station in Kwale, Delta State, Nigeria.

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Background

Oando Plc secured the Nigerian federal government’s approval for the plant in 2017.[5] It is as an upgrade to the Kwale-Okpai 480 MW combined cycle gas-fired power plant[6][7] that has been in operation since 2005[8] and in which Oando bought a 20% working interest in 2012.[9]

Oando reported spending on $17.5 million on capital expenditures on Kwale IPP Phase II in 2017,[1] indicating construction has begun.

Over the years, Oando has faced serious financial issues that came to a head in mid-2019 when Nigeria's Securities and Exchange Commission (SEC) ordered Oando's entire board to resign.[10]

Opposition

In mid-2019, local Okpai citizens protested against the power plant's operators, claiming the company failed to build promised infrastructure and supply power.[11][12][13]

Project Details

  • Sponsor: Oando Plc, Nigerian National Petroleum Corporation (NNPC), the Nigerian Agip Oil Company (NAOC), Eni
  • Parent company:
  • Location: Okpai Oluchi, Delta State, Nigeria
  • Coordinates: 5.709692, 6.575917 (exact)
  • Gross capacity (under construction): 500 MW
    • Combined-cycle unit: 500 MW (to start 2021)

Articles and Resources

References

  1. 1.0 1.1 1.2 Oando Plc Annual Report 2017, Oando 2017 Financial Statements website, accessed Dec 2019
  2. Kwale Powerplant, African Power Platform website, accessed Dec 5, 2019
  3. NNPC-Agip JV to build 480MW power project in Nigeria, NS Energy, Nov 5, 2017
  4. Okpai Phase 2 Project to 500MW to Nigeria’s power grid -NNPC, Naija247news Media, May 28, 2018
  5. Nkiruka Nnorom, Oando secures FG’s approval for 500Mw power plant in Kwale, Vanguard, May 15, 2017
  6. Eni starts producing gas, condensate at Nigerian Obiafu-41 discovery, SPG Global Platts, Oct 23, 2019
  7. Access to Energy Initiatives, NAOC website, accessed Dec 5, 2019
  8. NNPC/AGIP JV TO COMMENCE 2ND PHASE OF KWALE-OKPAI IPP SOON, O&G Links, Sep 26, 2017
  9. Oando Energy Resources Signs Agreements To Acquire ConocoPhillips Nigerian Assets For $1.79Billion, Oando website, accessed Dec 5, 2019
  10. Eromo Egbejule, Oando under fire from Nigeria's SEC, Petroleum Economist, Jul 24 2019
  11. Sony Neme, Youths seek Okowa’s intervention to avert crisis in Ndokwa community, The Guardian, May 3, 2019
  12. Residents of Okpai picket Agip Oil Power Plant for continuous neglect, TVC News Nigeria, Jul 3, 2019
  13. Okpai Residents Picket AGIP's Power Plant In Bayelsa(sic), ChannelsTV, Jul 4, 2019