The management of NIGAZ? company has said that River Kolmari, situated between Bauchi and Gombe States border, is capable of producing 10 Megawatts of electricity for the nation.
A representative of the firm, Mr Andrey Maslov, said this on Friday in Bauchi while presenting the feasibility studies the company conducted in conjunction with the Northern Nigeria Development Company (NNDC).
The feasibility was presented to the Deputy Governor of Bauchi State, Alhaji Sangir, and other stakeholders.
Sangir said that 25 million dollars? (N3.89 billion) was required for the whole project which was expected to be completed within 15 months? to 18 months from the date of commencement.
Maslov said that the studies were based on the discovery of 9.9 BCF with proven 6 BCF.
He said the quantity was enough to construct a power plant with installed capacity of 10 megawatt from gas deposit that would last for 20 years.
The company representative said that the under laying gas quality shows that it could produce electricity without it being treated.
He said? there was no need for a treatment, thereby reducing the production cost.
Maslov said that between 70 megawatts and 80 megawatts of electricity could be achieved, if the possible reserve suspected to have permeated the Kolmari River was confirmed.
“The proposed well, geologically wise, is at the border with Gombe State; the Kolmari River and the location is not optimum in terms of extraction for maximum reserve that can increase the reserve from 10 per cent to 20 per cent.
“Exploration could continue so that it could be connected to one gas project as expansion with return revenue of 15 per cent, the lowest level for NNPC,” Maslov added.
The NIGAZ representative said that the option left to the shareholders was either to proceed with the exploration that could lead to the discovery of big reserve or utilise the small quantity discovered.
He said that to utilise the small quantity was “risky” because it was marginal in terms of profit.
He, however, stated that? it would be beneficial to Bauchi and Gombe States while exploration would continue within the Benue Trough.
Earlier, the Managing Director of the company, Alhaji Bashir Abdulkadir, had said that they were in the state to submit the feasibility studies and create a relationship with the state government towards Public Private Partnership. (NAN)