The two companies aim to produce affordable energy in Nigeria through a cost reflective tariff system.
Rabat – Themis, a Morocco-based electricity company, has concluded a partnership with the Kingline Development Nigeria company to build a natural gas electricity plant in Ondo State Industrial Park in southern Nigeria.
Themis and Kingline expect the new power plant, called the Kinglinge Power Project, to be one of the world’s “lowest cost gas-to-power facilities.” Themis, backed by the international Denham Capital equity firm, will provide funding in the $600 million project.
Tas Anvaripour, CEO of the Casablanca-based power supplier Neo Themis, stated, “Kingline offers compelling advantages for the Federal Government of Nigeria given its extremely competitive pricing, availability of peripheral gas and transmission infrastructure, timing to operation, and technical flexibility.”
Kingline plans to sell 4.5 terawatts per hour of electricity to the state-run electricity company when the project becomes fully operational by 2022, according to Business Day. The project includes a 550 megawatt combined cycle powerhouse, a substation, a desalination facility, and related infrastructure.
With the aim to support power projects in Africa, Neo Themis was set up in 2018 to launch the Africa Power Investment Platform under a partnership between Themis and Denham Capital.
Nigeria currently has an operational capacity of 4,000 megawatts. However, it has 13,400 megawatts at maximum capacity and 15,000 megawatts of demand.
Kingline’s CEO Sean Kim expressed his excitement at working with Themis: “The Project has strong technical and financial support and will deliver a powerful solution for Nigeria, cost-competitive within any international market.”
In May 2017, Morocco and Nigeria partnered to build the Gazoduc project linking Nigeria to Morocco through a gas pipeline. The pipeline would benefit over 300 million people. The project aims to speed up electrification projects in West Africa and create competition in the region.
However, the progress of the project is facing challenges, according to a study conducted by Fetch Solutions. The project, it says, will face delays due to political and security concerns in the region.
It said that the the Nigeria-Morocco Gas Pipeline will face “considerable commercial, technical, legal and financial challenges” making the project “unlikely to materialize in the short or medium-term.”