To boost power supply the Nigerian National Petroleum Corporation, (NNPC) and Mobil Producing Nigeria have commenced the construction of a power station that will supply 500 mega watts to the national grid.

The Group Managing Director (NNPC), Dr. Mohammed Sanusi Barkindo, said this in a statement in Abuja.

He noted that the move was in line with the aspiration of the Federal Government to achieve the 6000MW target.

This is coming at a time the country’s power generation which stood at 3,700MW as at the end of December, slipped to 2,700MW within two months, leading to a deficit of 1,000MW.

Barkindo, who spoke at the Joint Venture Power Plant ceremony at Qua Iboe Terminal in Ibeno Local Government Area of Akwa Ibom State, was optimistic that the Federal Government’s 6000MW power target is still achievable.

According to him, the 500Mw power plant is part of a domestic gas synergy project which also includes onshore flare elimination and a domestic gas pipeline to deliver gas to the national grid.

"The aspiration of the Federal Government to achieve a higher power target remains at the front burner of the nation which has the potential of transforming the economy to a higher one," he said.

He also maintained that in addition to the power plant development, the NNPC/MPN joint venture was installing facilities for a near term delivery of 100 million Cubic Feet of Gas per Day, mcfd to the domestic market and was advancing 400mcfd domestic gas phase II project.

The NNPC boss noted that the project would benefit Nigerians and the people of Akwa Ibom State both in terms of job creation and increased activity for local businesses consistent with the government’s Nigerian Content Development programme, saying that local capabilities and skills would also be enhanced.

On the request by the Governor of Akwa Ibom State for the establishment of a Green Refinery in the state, Dr. Barkindo assured of the readiness of the corporation to work out modalities on the establishment of the refinery, adding that in the spirits of the Federal Government’s amnesty to the former militants in the Niger Delta region, the corporation was committed to addressing issues confronting the area.

He commended the neighbouring communities for their co-operation and support and implored them to continue to provide a conducive atmosphere that would support the timely delivery of the project.

Earlier, the Lead Country Manager, ExxonMobil, Mr. Mark Ward, disclosed that the proposed power project included the construction of an electric power plant as well as a 56-kilometre transmission line connecting the plant to the National Grid at Ikot Abasi in Akwa Ibom State.

Mobil Producing Nigeria operator of the NNPC/MPN Joint Venture awarded the Front End Engineering Design-contract for the project in September 2009.

FEED is the conceptual process of development and design for large industrial projects such as power plants and the project is expected to last one year.