African Business News

Seven Energy To Supply 10 Nigerian Power Plants With Gas

One of Nigeria’s foremost gas processing firms, Seven Energy, has initiated negotiations with 10 power plants over the possibility of supplying gas, in a move which would significantly boost current generation output.

A gas sale agreement has already been established with Akwa Ibom Power Plant, while Seven Energy is in the process of developing infrastructure to extend supply to neighbouring cities including Calabar, Port Harcourt, and Aba.

To this effect, sub-Saharan Africa’s largest gas processing plant has been installed by the company, and a 200-kilometers gas pipeline has also been constructed. The processing plant has the ability to “process 220 million standard cubic feet of gas per day,” Nigerian daily Business Day reported.

According to Seven Energy’s MD, Philip Ihenacho, the firm wants to eliminate redundancy in gas supply, enhancing the efficiency of power plants in the country in the process. Most power plants in Nigeria are gas-driven, given its abundant reserves.

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China Africa develops mine, 300MW power plant

CHINA Africa Sunlight Energy says it will complete its coal mine and a 300 megawatt power station at its concessions in Gwayi, Matabeleland North by 2016, creating over 4,500 jobs.

Addressing delegates at a Parliament seminar on Thursday, the company’s deputy general manager Charles Mugari said as part of the first phase of the project, the company will build a modern residential complex for 2,000 workers, a coal mine and power plant.

“By 2016 we hope that the mine will be up and running,” he said, adding that the company was converting its special grant to a special mining right.

He said second phase of the power project will focus on methane gas extraction and another 300MW plant to be completed in mid-2017. The company intends to establish another 400MW plant powered by methane gas.

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World’s Biggest Hydro Power Project

The World Bank has approved a $73.1 million grant for the massive and controversial $80 billion—by conservative estimates–Grand Inga’s first stage in a project that has so far spanned five decades to tap the Congo River’s massive energy potential.  The Grand Inga has the potential to supply energy to half of Africa’s 1 billion people–only 40 percent of whom have electricity today.  The Grand Inga is expected to provide 40,000 MW of electricity—twice that of the world’s current largest hydroelectric project, China’s Three Gorges Dam.

In addition to the World Bank’s grant, the African Development Bank’s International Development Association (IDA) approved $33.4 million last year.  These funds will go towards establishing a legal framework and state authority to oversee the construction of the first stage of the project and operations in the infamously politically volatile and corrupt nation.

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Japanese group reaffirms SA commitment as Hitachi Power Africa disappears

Corporate activity at an international level has resulted in the disappearance of Hitachi Power Africa (HPA), which was controversially associated with the African National Congress’s Chancellor House, and the emergence of Mitsubishi Hitachi Power Systems Africa (MHPSA), which was formally launched at the beginning of March.

The 400-employee business assumes responsibility for the boiler contracts at Eskom’s Medupi and Kusile coal-fired power projects, which are also the largest and most complex currently being undertaken globally by the larger Mitsubishi Hitachi Power Systems joint venture, which is domiciled in Yokohama, Japan.

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