Afam Power Project

active

In December 2001 the Shell Petroleum Development Company of Nigeria (SPDC) won contracts from the National Electric Power Authority (NEPA) to refurbish, operate and transfer the Afam I-IV power plants and to lease operate and transfer the Afam V plant, all located near Port Harcourt. The gas-fired plants were operating below capacity because of poor maintenance, so SPDC was required to refurbish the plants and then operate them for 15 years, selling electricity to NEPA, the national electricity utility. The project was delayed, and final contracts were signed in 2003, with construction to begin in early 2006. The rehabilitation project was expected to increase capacity from 240 MW to 400 MW in the short term, at a cost of US$ 238 million, and eventually to 930 MW by the first quarter of 2007. This was expected to require total investment by SPDC of US$ 540 million. Commercial operation started in 2008. Plant number 5 is said to be converted from Lease operate to own operate. Therefore, the project would be greenfield. This requires checking, because there has not been a written source yet. It is operational as of 2012. In 2013 (http://www.shell.com/global/environment-society/society/nigeria/major-projects/afam.html), Shell shuts down Afam VI due to gas shortage. No change for 2012 updates. http://en.starafrica.com/news/nigerias-afam-power-plant-gets-buyer-for-us260-million.html http://www.ventures-africa.com/2013/07/shell-nigeria-shuts-down-afam-vi-power-plant/ Project initially delayed. Major investment in Dec 2005, with Shell contracting for 200m euro ($237.5 million) to Alstom and Daewoo.