In 2013, Notore Power Limited signed an agreement with Contourglobal to construct and operate an independent gas-fired 500 megawatt power production plant in line with government regulation.
“We are in the development phase now, we’ve finished the gas study and we are now advancing to a stage where we are concentrating on the transmission of that power line,” Femi Solebo, CEO, Notore Power told CNBC Africa.
Together with the Federal Ministry of Education and Schneider Electric, the government is expected to generate and distribute between 8,000 and 10,000 megawatts of electricity by the end of 2014.
(WATCH VIDEO: Nigeria’s power sector still lacks funds)
“When you are building a power plant, there are many facets that cover it and one of the things we are trying to do is, work with TCN (Transmission Company of Nigeria) and NIPP (National Integrated Power Project) to make sure that the transmission of our power is smooth. So that’s what we’ve been doing in the last 12 months,” he said.
Ten power assets constructed under the NIPP were recently sold to private investors which increased momentum in the country’s power sector as the industry inched closer to being fully privatised.
(READ MORE: Nigeria to accept bids for 10 power plants)
“Gas is fundamental to everybody who is doing power. Notore is blessed because we are in the eastern part of Delta State and we sit on what is called the ‘Eastern [Gas] Gathering System’ and we are able to access as much gas as we want for this project,” he added.
Nigeria’s natural gas reserves are three times more substantial than the country’s crude oil reserves as it has well over 187 trillion cubic feet of gas supplies. However, accessing it proves challenge to the power sector since the right infrastructure is still not in place.
“Gas is as fundamental to power, as power is to the economy. We have a lot of gas in Nigeria and it’s important to use that gas to fire most of the plants. Most of the plants that you see today totalling about 15,000 potentially are mostly powered by gas,” he explained.
According to Solebo, the company has sufficient gas as they plan on an additional 1,000 megawatts as well as their current 500,000 megawatt projection.