- Power Generation Drops by 207.1MW
The Transmission Company of Nigeria (TCN) said that that the nation’s power generation capacity dropped slightly from 3,959 megawatts from Jan. 4, to 3,751.90 megawatts on Jan. 12, due to dearth of gas.
The Nigerian Electricity System Operator (SO) website, a sub agency of TCN, disclosed the figure on its daily forecast website on power generation data in Lagos on Thursday.
TCN put the total output of all the generation companies at 3,751.90 megawatts, which it said had been transferred to the 11 distribution companies across the country.
The website showed that the country’s power generation also recorded lowest peak at 2,876.80 megawatts.
According to the Nigerian Electricity Supply Industry (NESI) operational report for Jan. 4, the power sector hit a peak generation of 4,959 megawatts as against 3,321 megawatts recorded in Dec. 2.
NESI said that the sector recorded highest system frequency of 51.27Hz; lowest system frequency of 48.22 Hz; highest voltage recorded was 372KV, while lowest voltage recorded on the same day was 300KV.
An official of TCN, who preferred anonymity, said that electricity generation had been dwindling due to challenges of accessing gas by generation companies.
The official said that many power projects that could boost the country’s generation were still pending due to lack of fund and gas shortage to test run the turbines.
Similarly, a top management official of Egbin Power Station, who also pleaded anonymity, said that the power plant which usually generates over 1,000 megawatts had dropped to 375 megawatts due to gas constraint.
According to him, the plant, located in Lagos, generates and distributes between 250 megawatts and 300 megawatts due to shortage of gas.
The official said that Egbin, with an installed capacity of 1,320 megawatts, had the capacity to wheel over 1,000 megawatts daily.
He said that the plant had been limited to less than 400 megawatts due to shortage of gas.
Meanwhile, the Minister of Power Works and Housing, Babatunde Fashola, during the 11th Monthly Stakeholders meeting in Lagos on Jan. 9, unveiled plans to inaugurate some electricity projects this year.
Fashola said that some of the projects to be inaugurated in the course of the year include the completion of the Kaduna 215 megawatt power plant, the Gurara project and the Gardin Kowa plant.
Others are switching of the Gudenda substation, as well as the conclusion of the Katsina wind and the Abuja solar farms.
The second phase of the Abuja solar project, he said would run-up from 800 megawatts to 1.2 megawatts and raised the hope of possibility of partnerships in the area of development of hydro dams.
He also disclosed that there were 14 projects for transmission in Lagos State and Ikeja West, the largest in terms of transformer capacity, was undergoing expansion to respond to the growing needs of population.
“This tells you clearly that the transmission system is not static, it is dynamic and expanding.”
According to the minister, the evacuation of power at the Ikot Ekpene switching station is what has kept the grid to almost 4,000 megawatts.
“We still have 3,000 megawatt out from the damage of the Escravos and Forcados, so if that comes back, we are almost at 7,000 megawatts, so the target is incremental power.’’
Gold Gained Ahead of Joe Biden Inauguration 2021
Gold price rose from one and a half month low on Tuesday ahead of President-elect Joe Biden’s inauguration on Wednesday.
The precious metal, largely regarded as a haven asset by investors, edged up by 0.2 percent to $1,844.52 per ounce on Tuesday, up from $1,802.61 on Monday.
He said, “The key factor appears to be the (U.S.) currency.”
As expected, a change in administration comes with the change in economic policies, especially taking into consideration the peculiarities of the present situation. In fact, even though Biden, Janet Yellen and the rest of the new cabinet are expected to go all out on additional stimulus with the support of Democrats controlled Houses, economic uncertainties with rising COVID-19 cases and slow vaccine distribution remained a huge concern.
Also, the effectiveness of the vaccines can not be ascertained until wider rollout.
Still, which policy would be halted or sustained by the incoming administration remained a concern that has forced many investors to once again flee other assets for Gold ahead of tomorrow’s inauguration.
Crude Oil Holds Steady Above $55 Per Barrel on Tuesday
Brent Crude oil, against which Nigerian crude oil is priced, rose from $54.46 per barrel on Monday to $55.27 per barrel as of 9:03 am Nigerian time on Tuesday.
Last week, Brent crude oil rose to 11 months high of $57.38 per barrel before pulling back on rising COVID-19 cases and lockdowns in key global economies like the United Kingdom, Euro-Area, China, etc.
While OPEC has left 2021 oil demand unchanged and President-elect Joe Biden has announced a $1.9 trillion stimulus package, experts are saying the rising number of new cases of COVID-19 amid poor vaccine distribution could drag on growth and demand for oil in 2021.
On Friday, Dan Yergin, vice-chairman at IHS Markit, said in addition to the stimulus package “There are two other things that are going with it … one is of course, vaccinations — in the sense that eventually this crisis is going to end, and maybe by the spring, lockdowns will be over.”
“The other thing is what Saudi Arabia did. This is the third time Saudi Arabia has made a sudden change in policy in less than a year, and this one was to announce (the) 1 million barrel a day cut — partly because they are worried about the impact of the surge in virus that’s occurring,” he said.
Also, the stimulus being injected into the United States economy could spur huge Shale production and disrupt OPEC and allies’ efforts at balancing the global oil market in 2021.
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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