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The United States Trade Development Agency, has signed an agreement to provide Owel Holdings Limited, a grant of about $353,000 or N46.9million towards the establishment of an independent power project in Nigeria.
The United States Trade Development Agency, has signed an agreement to provide Owel Holdings Limited, a grant of about $353,000 or N46.9million towards the establishment of an independent power project in Nigeria.
The grant is to assist the Owel Holdings conduct a feasibility study for the establishment of a gas-fired IPP, to be located in Imo State.
The indigenous oil and gas company stated on Sunday, that the IPP will utilize the lean gas that will be produced by the Izombe Gas Processing Plant, which is being established by Owel in collaboration with Addax Petroleum Development Company at Izombe, Imo State.
The Izombe Gas Processing Plant, from which the lean gas for the IPP will be derived, will produce about 200 metric tonnes of LPG per day or 66,000 metric tonnes of LPG per annum from an initial feed gas of about 40million standard cubic feet per day.
The Consul-General of the United States of America, Mr. Brian Browne, signed on behalf of USTDA, while the Chairman/Chief Executive of Owel Holdings, Mr. Charles Osezua, signed for his company.
Osezua disclosed that the proposed IPP, based on the supply of about 36million standard cubic feet of gas, was capable of generating about 120 megawatts to complement government's efforts at achieving uninterrupted power supply in the country.
Osezua, the former Managing Director of Gaslink Nigeria Limited, expressed confidence that the grant will go a long way in contributing to the national quest for increased power generating capacity.
'With the signing of the grant agreement between the USTDA and Owel Holdings, we, effectively now have the Government of the United States, Owel Holdings and the Federal Government of Nigeria in a common pursuit of the twin national objectives of gas monetisation and increased power availability for the economic well-being of Nigerians", he said.
He called on the Imo State Governor to use his good offices to create the enabling environment for this project to put Imo State in an advantageous position for the realization of the nation's IPP Programme.
In his remarks, Browne said that the 120MW that will be generated by the IPP will result in the electrification of about 200,000 homes and offices in the country, and that the project is a visible step in bringing the President's national vision of the electrification of Nigeria to light.
According to him, 'I want to state that we support the Federal Government's efforts to end gas flaring, and we fully encourage efforts to team government with private industry to take the gas that was once flared to the benefit of no one, and now use that gas as a source of energy and electrification for the average Nigerian household."
The signing ceremony, which took place the Imo State Governor's office was witnessed by the Governor, Chief Achike Udenwa, members of his council as well as other dignitaries in the oil and gas industry.
The Governor, while commending the efforts of Owel Holdings and USTDA, reiterated his administration's commitment to providing the enabling environment for entrepreneurs who are desirous of establishing industries in the state.
THE PUNCH, August 08, 2005