Qua Iboe Power Project
Qua Iboe Power Project (QIPP) is a 540 MW gas-fired power plant in Akwa Ibom State, Nigeria. QIPP will be one of the lowest cost thermal power plants in Nigeria due to its efficient combined-cycle design and competitive gas price. QIPP will receive gas from Mobil Producing Nigeria (MPN) under a 20-year Gas Sales Agreement via a new 400mmscfd undersea gas pipeline from MPN’s existing offshore production facilities. The power plant also unlocks investment in transmission infrastructure, including a new 58km transmission line to be built by QIPP.
Black Rhino is developing QIPP with Dangote Group and the Nigerian National Petroleum Corporation. On 26 October 2017, QIPP finalized its Power Purchase Agreement and Put-Call Option Agreement with the Nigerian Bulk Electricity Trader (NBET) and the Federal Government of Nigeria. QIPP is expected to reach financial close in H2 2018. The total project cost is expected to be $1.1bn upon completion.
Kano Solar Power Project
Kano Solar IPP is a 100 MW solar power plant to be located in Zakirai in the Gabasawa local government area of Kano State jointly developed by Dangote Group and Black Rhino. In August 2017, the joint venture signed a Memorandum of Understanding with the Kano State Government. The $150 million project is expected to add much-needed generation capacity to the Nigerian grid.
Horn of Africa Pipeline Project
The Pipeline will transport refined oil products from the Port of Djibouti to storage facilities in Awash, Ethiopia (near Addis Ababa). Currently, Ethiopia imports fuel through the Port of Djibouti Tanker trucks transport jet fuel, diesel and gasoline from the Port of Djibouti into Ethiopia. 500 trucks per day transport fuel to the load-center in the greater Addis Ababa area, travelling ~800 km of narrow two lane road.
Ethiopia’s demand for refined oil products is growing at a rate >15% year on year. If compared to historically similar countries in a similar development path, Ethiopia’s demand for fuel will continue to increase, upwards of 20% year on year. The Project will expand import efficiencies and capacities, immediately unlocking GDP growth potential by filling nascent demand, and providing the country’s cheapest option for fuel transportation.
The current fuel transportation system is reaching the upper limits of its capacity, and a purely trucking scheme will not be able to logistically meet Ethiopia’s demand requirements. Trucking fuel will reach its ceiling, and start curbing Ethiopia’s economic growth within the next two years. The trucking system causes issues with adulteration and theft of product in transit and road conditions.
Black Rhino is developing the Horn of Africa Pipeline Project in joint-venture with Mining, Oil and Gas Solutions (MOGS), a wholly owned subsidiary of Royal Bafokeng Holdings. The Horn of Africa Pipeline JV has developed this Project from the concept stage, and upon completion the Project will represent an investment of $1.35 bn.