About IBOM POWER COMPANY LIMITED
Ibom Power Company Limited (IPC) is one of the first independent power plants in Nigeria. Akwa Ibom Investment Corporation (AKICORP), the investment arm of the Akwa Ibom State Government, incorporated Ibom power in 2001 as a private limited liability company under the Companies and Allied Matters Act (CAMA).
In May 2008, the company received a license from the Nigerian Electricity Regulatory Commission (NERC) to generate electricity. The license was amended to 685megawatts to accommodate both the 191megawatts Phase 1 and the proposed 500megawatts Phase 2. Ibom power receives gas from Accugas, a subsidiary of Seven Energy, based on a 10-year Gas Sales and Purchase Agreement (GSPA).
The plant output is evacuated to the national grid through a 49km 132kV transmission line from Ikot Abasi to Eket, 132/33kV substation. The Nigerian Bulk Electricity Trading Company Plc. (NBET) is the off-taker of the electricity produced by Ibom power plant.
The highest decision making body at Ibom Power Company Limited is the Board of Directors. Engr. Etido Inyang is the Chairman of the Board of Directors while the Directors are Barr. Uwem Ekanem, Hon. Ayang Ayang, Hon. Emmanuel Ebe and Engr. Meyen Etukudo as the Managing Director/Chief Executive Officer.
Our MISSION: To provide steady and profitable power generation services in Akwa Ibom State and Nigeria through public private partnership.
Our VISION : To become and remain the best growth and innovative power generating company in Nigeria with steady dividend payment driven by excellent employee incentives customer satisfaction and corporate governance.
The development of Ibom power plant started as a captive power plant for the proposed Akwa Refinery and Petrochemical Company. Although the then administration aborted the development of the refinery in 2002, the power plant project continued in phased development. The construction of phase one began in 2005 with the appointment of Group Five as the Engineering, Procurement, and Construction (EPC) contractor.
Phase one has an installed capacity of 191megawatts which comprises of three (3) units: two (2) GE frames 6B and one GE Frame 9E, Gas Turbine Generator (GTG) installed in a simple cycle configuration. Phase one commenced operation on December 13, 2001 with the evacuation of 30megawatts to the national grid. In July 2010, former President GoodluckEbele Jonathan officially switched-on phase one of the Ibom power plant.
Akwa Ibom Investment and Industrial Promotion Council (AKIIPOC) now Akwa Ibom Investment Corporation (AKICORP) incorporated Ibom Power Company Limited (IPC) as a special purpose companyunder the Corporate Affairs Commission (CAC) in January 2001. Ibom power is a private sector driven organization, which runs with the highest level of professionalism consistent with good Corporate Governance.
Power Generation Licence
Section 62 of the Electric Power Sector Reform Act 2005 provides that any person intending to engage in the business of electricity generation, transmission, system operation, and distribution or trading shall be required to obtain an operator’s licence from the Nigerian Electricity Regulatory Commission.
The on-grid type of licence allows the holder to generate electricity and connect to the national grid for dispatch. The most distinguishing feature of grid-connected licence is that the holder will enter into connection agreement with the Transmission Company of Nigeria (TCN) for connection, evacuation, and wheeling of the power to the national grid. The licensee also enters long-term power purchase agreement with the Nigerian Bulk Electricity Trading Plc (NBET).
In May 2008, the Nigerian Electricity Regulatory Commission (NERC) licensed Ibom Power Company to operate a 191megawatts power plant. In order to accommodate both phase one and phase two, Ibom power submitted an application to amend its licence from 191megawatts to 685megawatts on December 19, 2014. NERCapproved that application on October 27, 2015. In November 2015, His Excellency, Mr. Udom Emmanuel received the amended license on behalf of Ibom power Management. NERC renewed Ibom power’s 685-megawatt license on August 22, 2019.
Phase one has a total installed capacity of 191megawatts and consists of three (3) General Electric (GE) gas turbines generators (one Frame 9E, two Frame 6B) which are connected to the national grid through 11/132KVA transformers. Commercial operations of the Phase 1 of Ibom power plant started on December 14, 2009. Phase two of Ibom power will add 494megawatts to the installed 191megawatts Phase one to have a total capacity of 685megawatts. Ibom power plant currently provides about 10% of the electricity supply to the southsouth/south eastern axis of the national grid, with the potential to provide more at peak operation.
Ibom power gas turbines operate on only natural gas as driving fuel. In view of this, Akwa Ibom State Government and Seven Energy collaborated to produce the first public private sector driven initiative aimed at utilizing the abundant natural gas reserves in Akwa Ibom State to generate power. It was upon this premise that Ibom Power Companyexecuted a 10-year Gas Sales and Purchase Agreement (GSPA) with Accugas, a subsidiary of Seven Energy in May 2009.
The first commercial delivery of gas from the Uquo Field to the Ibom power plant commenced in January 2014. This represented a major milestone for Seven Energy and for Nigeria’s power sector as a whole. Seven Energy transports the natural gas to Ibom power plant via a 62km gas pipelinefrom their gas processing facility (GPF) at Uquo in EsitEket local government area to a gas receiving facility (GRF) in Ikot Abasi.
Seven Energy currently owns the Uquo Gas Processing Facility in EsitEket, processing gas from the Uquo and Stubb Creek fields. This is the largest privately owned gas supply system in sub Saharan Africa owned by a Nigerian independent company. The Uquo Gas Processing Facility is the sole source of gas used by the Ibom power plant.
It is a requirement of NERC that Ibom power, as the holder of an on-grid power generation license, will enter into a connection agreement with the Transmission Company of Nigeria (TCN) for connection, evacuation, and wheeling of the power to the national grid. In June 2014, TCN granted Ibom Power Company a provisional approval for power evacuation through the Ikot Abasi – Eket 132kV double circuit transmission line. TCN currently evacuates Ibom power plant output to the national grid through a 49km 132kV transmission line from Ikot Abasi to Eket 132/33kV double circuit substation.
Power Purchase Agreement (PPA)
The Nigerian Bulk Electricity Trading Company Plc. (NBET) is the manager and administrator of the electricity pool in the Nigerian Electricity Supply Industry (NESI). It was incorporated on July 29, 2010 and is 100% owned by the Federal Government of Nigeria. NBET purchases electricity from the generating companies through Power Purchase Agreements (PPAs) and sells to the distribution companies through vesting contracts.
Power Purchase agreements are contractual agreements between the energy buyer or off taker in this case, NBET and the power generating Company to purchase and sell energy. The buyer commits to pay a fixed price per megawatt hour (MWh) for a long-term tenor for the electricity that will generated.
Ibom Power Company Limited signed an Interim Power Purchase Agreement with NBET on May 7, 2015. Ibom power is currently negotiating a Power Purchase Agreement with NBET.
Awards and Recognitions
- Winner, Best Chief Executive Award, Global Executive Leadership programme 2018 held at Howard University, Washington DC, USA.
- Winner, Africa Most Innovative power generation services provider 2017 at the African Quality Awards.
- Presented a paper at the GE Frame 9E Users’ conference 2017 in Dubai.
Industry Relevant Certifications
- Registered with the Financial Reporting Council of Nigeria (FRCN)
- Registered participant in the Nigerian Electricity Supply Industry (NESI)
- Recognized by NERC as the cleanest and safest power company in Nigeria
- Never had any on-site fatality since the plant inception
- Never had any health related epidemic since inception
- Never had a fire outbreak
- Site and waste management compliant with the provisions of the federal Ministry of Environment
- Donated 30 million for community development across the five (5) clans in Ikot Abasi
- Secured a 30MVA transformer for the construction of Ikot Abasi substation
- Sponsored skills acquisition for Artisans in Ikpetim community and gave N150,000 to each artisan to start up their own business
- Funded the acquisition of a cassava grinding mill for Ikpetim women
- Annual end of the year gift items given to widows in Ikot Abasi communities
- Sponsored eye screening for aged persons in Ikot Abasi community
- Sponsored medical treatment for aged persons in Ikot Abasi at the company’s retained medical facility
- Engage community youths in our traffic control programme