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Proton Energy Signs Deal With NNPC, SPDC For $250m Power Project

Proton Energy Limited says it has signed a deal with five energy firms for the supply of natural gas in the first phase of its ‘Proton Delta sunrise project’.

The companies involved in the deal are Nigerian National Petroleum Company (NNPC) Limited, Shell Petroleum Development Company (SPDC), TotalEnergies, the Nigerian Agip Oil Company Limited (NAOC), and the Gas Aggregation Company Nigeria Limited (GACN).

Proton, in a recent statement, said the signing of the long-term gas supply aggregation agreement was a milestone in the development of its planned 500 megawatts facilities, which will be built in two phases.

The company said the first phase will deliver 150MW of electricity to the national grid, while the second phase will add 350MW.

According to the firm, it is expected that the first phase will reach commercial operations in 2025.

Speaking at the event, Oti Ikomi, executive vice chairman and chief executive officer of Proton, noted that the deal has been in the works for years, saying it was worth over $250 million.

Ikomi described the project as an advanced independent power plant (IPP), with the potential to reach financial close by the end of 2023, with the continuous support of important regulatory and financial sector partnerships.

He explained that, although the agreement was executed in February, it was important to recognise the work, impact, the amount of negotiation, as well as the amount of time for execution.

“This agreement is going to give us a multi-year supply of natural gas to the port on the sunrise project located in Sapele in Delta state. Gas is the most critical supply cost structure in developing a power plant. So, we are very proud of this,” he added.

“We expect direct and indirect jobs to be over 10,000. Look at the multiplier effect on our nation. It will contribute to growth and development.”

On his part, Abubakar Bagudu, governor of Kebbi state and member of the presidential transition council (PTC), said the decision to make the huge investment at a time the country was transitioning to a new administration as ‘brave’.

“But this says a lot, that there are courageous entrepreneurs out there who still believe that this country is a primary destination for investment. This is a statement of confidence in our economy,” Bagudu, who also chaired the event, said.

Also speaking, Wale Edun, a former commissioner of Lagos and a member of the PTC, assured that the administration of the president-elect, Bola Tinubu, would pave the way for investment as well as boost security to ensure the growth of the oil and gas sector.

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