03 January 2014, Lagos – Transcorp Ughelli Power Limited (TUPL), the power subsidiary of Transnational Corporation of Nigeria Plc (Transcorp), and General Electric (GE) have signed an agreement aimed at expanding the capacity of TUPL’s Ughelli power plant by1000 megwatts(MW) over the next three to five years.
According to a statement from Transcorp, both companies have also signed a separate agreement to rehabilitate the damaged GT 15 turbine at the Ughelli plant, which will add 115MW to the plant’s output.
The agreements follow a cooperation agreement executed by Transcorp and GE in 2013.
Currently, the Transcorp Ughelli power plant generates 360MW of electricity, up from 160MW on November 1, when Transcorp took ownership of the plant.
But the company said with the additional 115MW, as well as other rehabilitation works planned at the plant, output at Ughelli it is expected to increase to 700MW by December 2014.
Commenting on the agreements, Chairman of Transcorp, Mr. Tony Elumelu said: “We are very pleased to work with GE, a proven world leader in power technology development, on the Ughelli plant expansion project. With this, we have taken a bold step in fulfilling our promise to Transcorp’s stakeholders and the people of Nigeria.
“In a very short period of time, we have achieved significant impact – power production has more than doubled, and with this agreement, we will see increased output before the end of this year. We are confident that this partnership with GE will further accelerate the achievement of our goals in the power sector.”
Speaking in the same vein, the Global Chairman of GE, Mr. Jeffrey Immelt said: “ GE fully appreciates the confidence expressed by Transcorp. We are happy to bring the considerable resources of GE to support Transcorp’s audacious vision for Nigeria’s power industry. This partnership with Transcorp underlines GE’s deep commitment to developing the Nigerian power sector.”
The Ughelli power plant is Nigeria’s largest gas-fired electricity generation asset. Purchased by Transcorp during the 2013 power privatization programme, the $300 million plant is part of the $2.5 billion investment pledge made by Elumelu to deliver affordable, accessible power to Africa under the Power Africa Initiative.
Heirs Holdings, a pan-African proprietary investment company, which has Elumelu as chairman, is Power Africa’s largest private sector investor and a major investor in Transcorp.
– Goddy Egene, This Day