Moroccan energy utility Neo Themis has signed a partnership with the Kingline Development of Nigeria to fund and build a $600m gas-fired power plant in Ondo State Industrial Park in the town of Akure, about 200km northeast of Lagos.
Neo Themis and Kingline say the Kingline Power Project will be one of the world’s lowest cost gas-to-power facilities.
Tas Anvaripour, chief executive of the Casablanca-based Neo Themis, said: "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."
The project is expected to reach financial close in 2020 and to become operational by the end of 2022. When complete, it will consist of a 550MW combined-cycle powerhouse, a substation, a desalination facility and transmission infrastructure.
Funding will be provided by "multilateral and private institutions" led by Denham Capital, an investment company with offices in the US, London and Perth, Australia.
Denham said the project price was underpinned by an EPC agreement signed with an "international contractor that has successfully delivered over 4GW of gas fired power plants in Africa", although it did not say which.
Image: Themis will be building a combined-cycle gas plant similar to this one, near Barcelona (Dreamstime)