Greenville’s $500m plant boosts Nigerian industries with LNG

///Greenville’s $500m plant boosts Nigerian industries with LNG

Greenville’s $500m plant boosts Nigerian industries with LNG

2020-08-20T05:43:34+00:00

A number of industries in Sagamu, Lagos and northern Nigeria are already connected to Greenville’s environmentally-friendly, clean and clear energy, with Dufil Prima Foods, makers of Indomie noodles, being the latest beneficiary.

“What we need in Nigeria is more industrialisation, more jobs and more skills, and now power will not be an issue when it comes to starting any company,” Ritu Sahajwalla, managing director, Greenville, said weekend at the commissioning of Greenville customer location at Dufil Prima Foods in Port Harcourt.

Greenville’s $500 million plant at Rumuji, Rivers State, has the capacity to produce 2,250 tonnes every day and 750 million tonnes annually. The oil and gas firm has an arrangement with the Federal Government since 2014 to supply LNG to Kaduna Power Plant.

“We have 2,250 tonnes of LNG and we will expand more to supply LNG to 250 megawatts (MW)-capacity Kaduna Power Plant in the north,” Sahajwalla, said.

“We have almost concluded. Kick-off depends on the completion of the power plant. We have everything needed to start. Nigeria can have 250MW in six months,” she said, adding that Dufil is getting 5 megawatts from the company to power its factory.

Forty percent of Nigerian manufacturers’ expenditure goes into alternative energy sources. A number of them use Low-Pour Fuel Oil (LPFO), which is much expensive and environmentally-unfriendly.

According to a survey conducted by the Manufacturers Association of Nigeria (MAN), expenditure on alternative energy sources totalled N93.1 billion in 2018, eating deep into the margins of the producers.

Sahajwalla said LNG is cost-effective and environmentally-friendly, adding that it is the catalyst to Nigeria’s industrialisation and growth.

“One truck can produce 5 megawatts. That is why I said from now Nigeria can have more pipelines and more stable power plants. This project comes very handy in terms of new industries and the strength of industries. From now to the next four or five years, industries are developing and the pipeline will be coming,” she added.

Industries are seeking ways of cutting production costs as they battle with multiple taxation, low consumer purchasing power and poor access to funding.

Nigeria has retained its double-digit monetary policy rate at 13.5 percent from a previous 14 percent, while commercial lenders give out loans at 20 to 35 percent interest rates with a 12 months tenor.

Virender Pathania, head of operations, Dufil Prima Foods, explained that the LNG is clean energy and will emit less carbon.

“If you look at this, it is clean energy. Carbon emission will be less and at the same time it is cost-effective. It is also easy to store and transport,” he said.

He said Dufil is maintaining CNG but will keep it as a stand-by while gradually switching to LNG.

“We still have commitments in CNG, but if supply is regular and efficient, we will switch to LNG,” he said, adding that Greenville bore the cost of the project, except the civil structure.

Oyadolu Joseph, one of the directors of Greenville, said the company is undergoing a silent revolution because LNG reduces cost of running and maintaining businesses or homes.

“Your overhead costs and cost of sales will be reduced, which will increase your profit,” he said.

He further explained that the company has a plant for LPG (cooking gas) and will supply once there is demand.

Business Day
July 23, 2019.
By Odinaka Anudu.