• Friday, March 29, 2024
businessday logo

BusinessDay

Greenville banks on FG support to supply gas, power to industries, Nigerians

Greenville Liquefied Natural Gas

Greenville Liquefied Natural Gas (LNG) Limited is banking on the support of the Federal Government to supply gas to industries and provide LNG to Kaduna Power Plant.

Speaking during the visit of Jedy Agba, minister of state for power, at Greenville’s $500 million facility at Rumuji, Rivers State, weekend, Eddy Van Den Broeke, chairman of Greenville, said with Federal Government support, the company can supply gas to companies in Kano,Kaduna, Sokoto and other parts of the country.

“Everybody complains that there is no electricity. But this facility can be replicated three times in different places,” he said.

He said the company was absolutely ready to supply LNG to Kaduna Power Plant, assuring that Train 1 would be available in November while Train 2 would be ready by end of January 2020.

Van Den Broeke, who has been in Nigeria for 25 years, said Greenville could help develop several industries across the country, especially those in the north, through its gas and power.

Greenville has invested hugely in its quest to provide gas-to-power solution to Nigerians. But the company needs patronage and is willing to supply LNG to Kaduna Power Plant. It also provides gas to firms to enable them stay afloat and reduce ballooning energy costs.

“Our relationship with the community where we operate is good,” the chairman said, when asked about Greenville’s relationship with the Rumuji community and its environs.

“Once we are in full speed, we will talk details with the community,” he assured.

Greenville’s $500 million plant at Rumuji, Rivers State, has the capacity to produce 2,250 tons every day and 750 million tons annually. The oil & gas firm has an arrangement with the Federal Government since 2014 to supply LNG to Kaduna Power Plant.

While speaking, Jedy Agba, minister of state for power, said he was satisfied with what he saw at Greenville facility. He said what he saw was an impressive effort by a company to power Nigerians.

“I am sure the Federal Government will be interested,” he assured.

He said the plant was capable of supplying the needs of Kaduna Power Plant, stressing that it would be a good business once Kaduna Power Plant deal with Greenville was done.

“The plan of the Federal Government is to make power available for every Nigerian,” he said.

“If it is within my power, I will facilitate gas to Kaduna Power Plant,” he said. He assured investors that Greenville is a viable facility and has the capacity to supply the needs of Nigerians.

Ritu Sahajwalla, managing director, Greenville, said the company was humbled that the minister had chosen to visit the facility.

Related News

“We are humbled that someone is looking to see how this facility can supply gas to industries. We are glad that the minister has seen this,” she said.

She pointed out that the company already had customers it supplied gas directly to, but stressed that the company was looking forward to Kaduna Power Plant.

So far, Greenville has taken LNG to manufacturers to cut their production costs and improve efficiency.

A number of Industries in Sagamu, Lagos and the northern Nigeria are already connected to Greenville’s environmentally-friendly, clean and clear energy, with Dufil Prima Foods, makers of Indomie noodles, being the latest beneficiary.

“What we need in Nigeria is more industrialisation, more jobs and more skills, and now power will not be an issue when it comes to starting any company,” Sahajwalla said at the commissioning of Greenville customer location at Dufil Prima Foods in Port Harcourt.

“We have 2,250 tons of LNG and we will expand more to supply LNG to 250 megawatts (MW)-capacity Kaduna Power Plant in the north,” she further said.

“We have almost concluded. Kick-off depends on the completion of the power plant. We have everything needed to start. Nigeria can have 250MW in six months,” she explained.

Nigerian manufacturers spend 40 percent of their expenditure on alternative energy sources. A number of them use Low-Pour Fuel Oil (LPFO), which is much expensive and environmentally-unfriendly.

According to a survey conducted by the Manufactiurers Association of Nigeria (MAN), expenditure on alternative energy sources totalled N93.1 billion in 2018, eating deep into the margins of the producers.

Sahajwalla had said that LNG was cost-effective and environmentally-friendly, stressing that it was the catalyst to Nigeria’s industrialisation and growth.

“One truck can produce five megawatts. That is why I said from now Nigeria can have more pipelines and more stable power plants. This project comes very handy in terms of new industries and the strength of industries. From now to the next four or five years, industries are developing and the pipeline will be coming,” she said.

Industries are seeking ways of cutting production costs as they battle with multiple taxation, low consumer purchasing power and poor access to funding.

 

ODINAKA ANUDU