Page 10 - AfrElec Week 20 2021

AfrElec GAS-FIRED GENERATION AfrElec

NLNG set to accelerate work on Train 7

NIGERIA SIMBI Wabote, the executive director of the project itself is anticipated to cost $5bn to imple-
Nigeria Content Development and Monitoring ment, and another $5bn will have to be spent on
Board (NCDMB), has said he expects the Nige- upstream and midstream operations to support
ria LNG (NLNG) consortium to accelerate work Train 7, he commented.
on the Train 7 project within the next few weeks. “[In addition to] the $5bn for the Train 7
Speaking to reporters in Lagos earlier this project, there is another $5bn out there for the
week, Wabote acknowledged that NLNG had upstream opportunity,” he explained. “So in
not been able to move ahead as quickly as it had the whole process, you see that we’ve been able
hoped. The consortium signed contracts for to lock almost about $10bn only on the Train 7
the Train 7 project early in 2020 and could not project.”
implement them immediately because of the The Train 7 project is designed to raise
coronavirus (COVID-19) pandemic, he noted. NLNG’s total production capacity from 22.5mn
As a result, he said, Nigerian fabrication tonnes per year to 30mn tpy. It provides for the
yards, along with other local contractors and construction of a seventh train that will turn out
sub-contractors that are slated to contribute to 4.2mn tpy, as well as the debottlenecking of exist-
the project, have not yet started operating at full ing trains, which will add another 3.4mn tpy of
capacity. But the pace of work is set to pick up in capacity.
the near future, he stated. The NLNG consortium includes Nigerian
“It has been slow, to be fair, in coming to full National Petroleum Corp. (NNPC), with 49%;
steam to keep the various yards in the country Royal Dutch Shell (UK/Netherlands), with
busy,” he was quoted as saying by This Day. “But 25.6%; Total (France), with 15%, and Eni (Italy),
I have been told that by [the end of] May, things with 10.4%. The partners own a gas liquefaction
will begin to accelerate.” plant with six production trains on Bonny Island.
Wabote also said that he expected the Train They brought the first train on stream in 1999
7 scheme to attract as much as $10bn worth of and made a final investment decision (FID) on
investment into the Nigerian economy. The the construction of a seventh train last year.™

INVESTMENT

KenGen to raise $2bn to fund

green expansion

KENYA KENYAN generator KenGen has unveiled plans Djibouti later this month. KenGen was awarded
to raise $1.95bn to extend its renewable generat- the contract in February from Djibouti’s Office
ing capacity, with 651 MW of new geothermal of Geothermal Energy Development (ODDEG).
top of its spending list. The project involves the drilling of two geo-
KenGen said most of the cash will come from thermal wells at the Galla Le Koma geothermal
development financiers, Bloomberg reported. field in the Lake Assal region.
The Kenyan government is pushing forward Geothermal development director Abel Rot-
with plans to make the country’s generating grid ich said preparations for the commencement of
100% renewables, up from 90% just now. the drilling works were 80% complete.
KenGen plans to build four new 140-MW The official contract signing was held in Dji-
geothermal project, including a project to bouti in mid-February between KenGen and
be delivered as a public-private partnership, ODDEG.
according to Karingithi. Also, Kengen has completed the first drilling
The company has already begun to drill steam at Tulu Moye site in Ethiopia, while the drilling
wells at two locations. It also plans to increase of the second well is underway.
capacity at existing projects by 66 MW. Under the KES5.5bn ($50mn) contract,
KenGen currently generates about 1,803 MW KenGen will drill eight wells in the Ethiopian
of Kenya’s total installed capacity of 2,892 MW. rift valley, with each well costing KES630mn
Meanwhile, KenGen intends to begin its ($5.8mn).™
KES700mn ($6.4mn) geothermal project in

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