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Nine Power Plants Shut, Shiroro, Jebba Lose 245MW

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  • Nine Power Plants Shut, Shiroro, Jebba Lose 245MW

Nine of the nation’s 26 power plants did not generate any megawatts of electricity on Wednesday, coupled with significant reduction in the generation from two of the hydropower plants and several others.

The Shiroro Power Station in Niger State and Jebba Power Station in Kwara State saw their output fall to 300MW and 381MW, respectively, down from 450MW and 476MW on Friday, according to industry data obtained by our correspondent.

Unit 411G3 of Shiroro was out for water management, while 411G4 was out on maintenance.

Jebba’s unit 2G4 was also out for water management and 2G6 due to burnt generator winding and automatic voltage regulator.

Generation from Egbin, which is located in Lagos, with an installed capacity of 1,320MW, was said to have been limited to 160MW as of 6am on Wednesday, largely due to gas supply shortages, compared to the 172MW recorded on Tuesday, November 29.

The nation recorded another total system collapse on Sunday, December 4, the second in less than two weeks. The national grid had collapsed on November 24, the data showed.

The total national power generation fell to 3,251MW as of 6am on Wednesday, down from 3,574.2MW on Monday, November 28.

The power plants that were idle included Olorunsogo II in Ogun State and Ibom Power in Cross River.

Other plants, which did not generate any megawatt of electricity, were Afam IV & V, Odukpani NIPP, Trans-Amadi, AES, ASCO and Gbarain.

Olorunsogo’s units GT1, 2, 3, 4 and ST2 were said to be out due to gas constraints, while ST1 was out on maintenance.

The GT1 unit of Ibom Power was out on guide vane problem, while GT2 and 3 were out due to maintenance of the gas station for 45 days since October 21.

Twelve units of Afam IV & V were said to have been de-commissioned and scrapped; units GT13, 14, 15 and 16 were out on blade failure; GT17 and 18 were out due to burnt generator transformer; while GT19 and 20 were awaiting major overhaul.

Odukpani’s GT1 was shut down due to low excitation; GT2 out on maintenance; GT3 tripped on fire alarm; GT4 out due to unit transformer problem; and GT5 out due to gas constraints.

Trans-Amadi’s GT1, 2 and 4 were out due to gas constraints and GT3 out on fault, according to the data.

The AES was said to be out of production; ASCO’s GT1 was shut down due to leakage in the furnace; and Gbarain’s GT2 was out due to gas constraints.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Crude Oil Pulled Back Despite Joe Biden Stimulus

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Crude Oil Pulled Back Despite Joe Biden Stimulus

Crude oil pulled back on Friday despite the $1.9 trillion stimulus package announced by U.S President-elect, Joe Biden.

Brent crude oil, against which Nigeria’s oil is priced, pulled back from $57.38 per barrel on Wednesday to $55.52 per barrel on Friday in spite of the huge stimulus package announced on Thursday.

On Thursday, OPEC, in its latest outlook for the year, said uncertainties remain high in 2021 with the number of COVID-19 new cases on the rise.

OPEC said, “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.”

Governments across Europe have announced tighter and longer coronavirus lockdowns, with vaccinations not expected to have a significant impact for the next few months.

The complex remains in pause mode, a development that should not be surprising given the magnitude of the oil price gains that have been developing for some 2-1/2 months,” Jim Ritterbusch, president of Ritterbusch and Associates, said.

Still, OPEC left its crude oil projections unchanged for the year. The oil cartel expected global oil demand to increase by 5.9 million barrels per day year on year to an average of 95.9 million per day in 2020.

But also OPEC expects a recent rally and stimulus to boost U.S. Shale crude oil production in the year, a projection Investors King experts expect to hurt OPEC strategy in 2021.

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Crude Oil

OPEC Says Uncertainties Remain High in 2021

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OPEC Says Uncertainties Remain High in 2021

The Organization of the Petroleum Exporting Countries (OPEC) on Thursday said global uncertainties remained high going forward in 2021 but kept its oil demand forecast unchanged.

In the cartel’s latest oil outlook for 2021, oil demand is expected to increase by 5.9 million barrels per day year on year to 95.9 million barrels per day. The prediction was unchanged from December’s assessment.

However, OPEC and allies, said: “Uncertainties remain high going forward with the main downside risks being issues related to COVID-19 containment measures and the impact of the pandemic on consumer behavior.”

“These will also include how many countries are adapting lockdown measures, and for how long. At the same time, quicker vaccination plans and a recovery in consumer confidence provide some upside optimism.

Crude oil rose to $57 per barrel this week after incoming US President Joe Biden announced it would inject $1.9 trillion stimulus into the world’s largest economy.

But the recent rally in the commodity and stimulus announcement is expected to boost US crude oil output and disrupt OPEC+ production cuts strategy for the year.

The 2021 supply outlook is now slightly more optimistic for U.S. shale with oil prices increasing, and output is expected to recover more in the second half of 2021,” OPEC said.

Still, OPEC, in its forecast “assumes a healthy recovery in economic activities including industrial production, an improving labour market and higher vehicle sales than in 2020.”

“Accordingly, oil demand is anticipated to rise steadily this year supported primarily by transportation and industrial fuels,” the group said.

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Crude Oil

Brent Crude Oil Rose to $56.25 Per Barrel

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Brent Crude Oil Rose to $56.25 Per Barrel

Oil price surged following the declaration of Joe Biden as the President-elect of the United States of America last week after Trump’s mob invaded Capitol to disrupt a joint Senate session.

Also, the large drop in US crude inventories helped support crude oil price to over 11 months despite the second wave of COVID-19 crushing the world from Asia to Europe to America.

Brent crude oil, against which Nigerian Crude oil is priced, rose to $56.25 per barrel on Friday before pulling back to $55.422 per barrel on Monday during the London trading session.

Experts attributed the pullback to the rising number of COVID-19 cases in Asia with about 11 million people already locked down in Hebei province in China.

Covid hot spots flaring again in Asia, with 11 million people (in) lockdowns in China Hebei province… along with a touch of FED policy uncertainty has triggered some profit taking out of the gates this morning,” Stephen Innes, chief global market strategist at Axi, said in a note on Monday.

China, the world’s largest importer of crude oil, has joined the United Kingdom and others declaring full or partial lockdown to curb the second wave of COVID-19.

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