With more industrial facilities using distributed power technologies to ensure a reliable energy supply and increase productivity, GE s Distributed Power business is supplying Genesis Electricity s driven project company, GEL Utility Limited, with three 25-megawatt (MW), trailer-mounted, TM2500+ aeroderivative gas turbines to generate uninterrupted power at Nigerian National Petroleum Corporation s (NNPC) state oil refinery at Port Harcourt, Nigeria.
The installation by GEL Utility Limited of GE s mobile gas turbines at the Port Harcourt Refining Company (PHRC) facility will ensure the country s largest oil refinery has the power it needs to overcome chronic grid outages and return to full capacity for refining. Up to now, grid outages have reduced PHRC s output to 30 percent of its total maximum capacity of 210,000 barrels per day. The outages and other factors have forced Nigeria to import large volumes of refined petroleum products to meet its domestic needs.
To help address these issues, Genesis Electricity Limited, an independent power producer and one of the owners of GEL Utility Limited, signed a 20-year power purchase agreement with NNPC in November 2013 for the installation of GE s TM2500+ units at the 49-year-old refinery. The TM2500+ gas turbines will provide both the baseload and backup power to support refinery operations. The agreement also includes the future modernization of Nigeria s other two refineries.
GE, through its Sales & Project Finance (S&PF) group, acted as a catalyst and differentiator to take the project post execution of the power purchase agreement with NNPC to financial close. GE S&PF worked with GEL Utility Ltd, Genesis, Engro Powergen Ltd. (one of the equity holders) and other project participants to structure and arrange the project s equity, senior and sub-debt. It is the first-ever non-recourse project financing for power plants in Nigeria.
We are excited to work with GE to deploy their proven TM2500+ gas turbine technology and help Nigeria successfully return the Port Harcourt refinery to full service as quickly as possible, said Akinwole Omoboriowo II, CEO of Genesis Electricity Limited. This project was not only important in getting the refinery back into full operation, but also to support Nigeria s long-term economic interests by achieving optimum refining capacity. The three TM2500+ units will enter commercial operation in August 2014, giving PHRC the power it needs to return to full capacity. As a result, Nigeria will be able to drastically reduce its use of imported refined fuel products.