The implementation of the $10 billion Memorandum of Understanding (M0U) between the federal government and General Electric (GE) for the generation of 10,000MW is being challenged by gas supply constraints, General Electric has said.
This was stated by the chief executive officer of Subsea Systems at GE oil and Gas, Rod Christie, yesterday at a press conference on the side-lines of the on-going 2013 Offshore Europe Conference and Exhibition taking place at the Aberdeen Exhibition and Conference Centre (AECC), Aberdeen, Scotland.
Under the MoU which was signed at the Nigerian High Commission in London, in March 2012, $10 billion is expected be invested in various power plants with combined capacity of 10,000MW, with GE taking 15 per cent equity in each of the power plants to be constructed.
The MoU was then described by the former minister of power, Prof Barth Nnaji, as the highest expression of investment support for the federal government’s power sector reforms by private investors.
The MoU was amongst a series of general agreements for support in various sectors of the economy including power and transportation especially rail after the company met with President Goodluck Jonathan.
According to Christie, other challenges faced by General Electric in its operations in Nigeria include that of security for employees, infrastructure and supply chain challenge for finished goods. “Gas supply is a challenge to implementation of 10,000MW MoU on Power, infrastructure supply chain for finished goods is also a challenge,” Christie said.
He said the company was presently investing in technology transfer for suppliers in order to ensure the development of their capacity to become strong and reliable suppliers.
In the petroleum sector, the company which 2012 revenue was $15.28 billion said it has a long standing relationship with major oil companies operating in the Nigerian oil and gas industry.
Information from Leadership was used in this report.