NTPC’s Nigeria deal ends

The much touted pact between state-owned power generation utility NTPC Ltd and the Nigerian government for setting up a power plant there in exchange for liquefied natural gas has lapsed, a company official said on Thursday.

“The deadline has expired. We had signed the memorandum of understanding on May 22 in 2007. We have written to the government there to extend the deadline for converting the MoU into a joint venture. They have to now set a new date,” he said.

The MoU envisaged setting up a coal-based 500 MW plant and a gas-based 700 MW unit by NTPC in Nigeria. “In return, the Nigerian government was supposed to supply us three million tonnes of liquefied natural gas annually on a long-term basis. It was not a barter deal, but a purely commercial arrangement,” the official said.

The Nigerian government was also expected to facilitate NTPC’s participation in bidding for a gas block there. NTPC’s obligations were to be fulfilled after the operation of the Nigerian side’s commitment. NTPC was expected to assist Nigeria in modernisation of its power stations.