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Power Generation Hits 4,327MW Despite Gas Pipeline Fire

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electricity
  • Power Generation Hits 4,327MW Despite Gas Pipeline Fire

Power generation in Nigeria increased by 1,100 megawatts in four days despite last Thursday’s fire incident that affected the Escravos-Lagos Pipeline supplying gas to some power plants.

While the nation’s current transmission capacity was put at 7,000MW, network operational capacity stood at 5,500MW.

Total electricity generation stood at 4,327MW as of 6am last Thursday, January 11, compared to 3,227.9MW last Sunday, when 12 power plants were idle.

The rise in generation followed the resumption on Monday of gas supply to six power plants – Egbin (Lagos), Omotosho I and II (Ondo), Olorunsogo I and II and Paras Energy (Ogun) – after the completion of the repair work on the pipeline, which was damaged by the fire incident on January 2.

The plants did not generate any megawatt of electricity for four straight days until Monday when the Escravos-Lagos Pipeline System, supplying gas to them, came back on stream.

The nation generates most of its electricity from gas-fired power plants, while output from hydropower plants makes up about 30 per cent of the total generation.

Total generation, which fell slightly to 3,517.5MW as of 6am on January 3, 2018 (the morning after the grid collapse caused by the first pipeline fire), rose to 4,102.3MW on January 10.

Unutilised generation capacity occasioned by gas constraint dropped to 1,004.8MW as of 6am on January 11 from 3,133.3MW on January 5, according to the data obtained by our correspondent on Friday from the Ministry of Power, Works and Housing.

But the combined generation from Kainji, Jebba and Shiroro hydro plants, which rose by 580MW to 1,212MW on January 3 and offset most of the losses caused by the shutdown of the six power plants, dropped to 769MW on January 11.

Kainji, Jebba and Shiroro generated 397MW, 174MW and 198MW, respectively on Thursday, compared to 339MW, 445MW and 428MW on January 3, the data showed.

Jebba did not generate electricity last Monday as five of its units (2G1 to five) were said to have tripped due to the loss of auxiliary supply and 2G6 out due to burnt generator winding and automatic voltage regulator.

Electricity generation from Egbin, the nation’s biggest power station, stood at 410MW as of 6am last Thursday, compared to 561MW on January 2.

Seven out of the nation’s 28 power plants did not generate any megawatt as of 6am on Thursday, compared to 14 on Friday, January 5. The plants are Sapele I, Alaoji II, Olorunsogo II, Azura-Edo, AES, ASCO, and Trans-Amadi.

The Nigerian National Petroleum Corporation said on Friday that routine gas supply for power generation was not affected by the fresh fire incident, which engulfed a segment of the Escravos-Lagos Pipeline System because an alternative pipeline was re-streamed immediately to prevent the disruption of gas supply to power plants in parts of the country.

The corporation said gas supply into the network via alternative sources had been ramped up ahead of ongoing repair work on the affected segment as directed by the Group Managing Director, NNPC, Dr. Maikanti Baru.

Apart from being the main source of gas supply to some crucial power plants, the Escravos-Lagos Pipeline System feeds the West Africa Gas Pipeline System.

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.

Business

Businesses Groan as Price of Diesel Rises to N250 Per Litre

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Petrol Importation

Businesses Groan as Price of Diesel Rises to N250 Per Litre

Businesses have started feeling the negative impact of the rising price of Automotive Gas Oil, known as diesel.

A single litre now goes for N250 in some parts of Lagos, with businesses taking a beating on the back of rising energy costs.

Our correspondent observed that some filling stations in Lagos had increased the price of the product to N250 per litre, while many others sold it at between N220-N245.

Northwest Petroleum along the Oshodi-Apapa road increased the pump price of diesel to N250 per litre; AP (Ardova Plc), along Airport road, Ikeja, N248; and Oando, along Acme Road, N240.

The National Bureau of Statistics, in its AGO price report on Tuesday, said the average price paid by consumers for diesel increased by 0.22 per cent to N224.86 per litre in January 2021 from to N224.37 in December 2020.

It said states with the highest average price of diesel were Adamawa (N268.33), Zamfara (N262.78) and Kebbi (N257.50).

“States with the lowest average price of diesel were Osun (N194.60), Anambra (N195.83) and Enugu (N198.24),” the NBS added.

Crude oil price accounts for a large chunk of the final cost of petroleum products, and the deregulation of the downstream oil sector by the Federal Government means that the pump prices of the products will reflect changes in the international oil market.

The international oil benchmark, Brent crude, has risen by more than 25 per cent this year from the $51.22 per barrel at which it closed last year. It rose to $65.25 per barrel as of 6:30pm Nigerian time on Tuesday.

Diesel is mostly used by businesses to power their generators amid a lack of reliable power supply from the national grid.

The President, Association of Small Business Owners of Nigeria, Mr Femi Egbesola, lamented that the recent increase in the price of diesel was taking a heavy toll on businesses, especially Small and Medium Enterprises.

“The cost of diesel and raw material is giving us a nightmare. The price of diesel has been skyrocketing in a way that creates fear in particularly manufacturers,” he told our correspondent on Tuesday.

According to him, it is difficult for businesses to factor all the increase in diesel price in their final product prices.

Egbesola said, “That is why a lot of companies are downsizing and are making sure that they only produce products that they are so sure will sell in the market.

“Many companies have reduced their product lines significantly just to be able to cope. And that is not good for us because by the time this goes on, unemployment will increase. I believe government should be able to do something about this.”

He said although the downstream petroleum sector had been deregulated, there should be checks and balances.

Egbesola said many small businesses’ savings had been eroded already because ‘we keep spending our savings to make sure we don’t close shop’.

He said, “If things continue this way, there is no way we are not going to close shop. We are still struggling with the recent increase in electricity tariff.

“Many small businesses still depend so much on diesel generators because there is no alternative power supply. It is only the big players that have the facilities to use gas. And we cannot use solar installation because it is very expensive.”

Nigeria, Africa’s largest oil producer, relies largely on importation for petrol and other refined products as its refineries have remained in a state of disrepair for many years.

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Appointments

United Capital Appoints Latunji Head, Marketing/Corporate Communications

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United-capital

United Capital Appoints Latunji Head, Marketing/Corporate Communications

United Capital Plc has been appointed, Tolu Latunji as its Head, Marketing & Corporate Communications.

In the new role, he is expected to drive a strategic communications, marketing and brand management programme for the investment banking group.

Latunji is a communication and marketing expert with 12 years’ experience in products development, marketing, brand & franchise building, effective management and communication of strategic objectives whilst ensuring adequate visibility for both organisation and product/service offerings through product, content and brand initiatives.

“With a 360 degree knowledge of communications and marketing, which includes but not limited to – brand management and initiatives, corporate affairs, internal and external affairs, product and brand marketing, event management and experiential marketing, cluster/segment marketing, Tolu has served at various capacities on government constituted sub-committees on financial inclusion,” a statement explained.

Prior to joining United Capital Plc, he was the Managing Partner of Ten & Square Media Co., a bespoke creative ideation and brand/crisis management firm, based in Lagos, Dakar and London.

Latunji was recently the Strategic Communications lead at FMDQ Securities Exchange, Nigeria’s first integrated financial market infrastructure (FMI), where he had the responsibility of effectively positioning the group, together with its subsidiaries, as the most sophisticated and technologically driven securities exchange in Africa.

Prior to that, he worked in Guaranty Trust Bank for nine years with roles in brand management & monitoring, events and experiential marketing, products and content marketing and user experience.

He led the marketing team to the successful development and launch of various retail, SME and corporate products. He was also instrumental in curating and developing the bank’s social footprints. Outside the corporate environment, Tolu engages in various humanitarian activities with food banks and empowerment programmes. He holds a B.Sc. Economics from University of Lagos.

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Business

Firm to Train 100 Nigerians in Solar Installation

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300MW Solar energy

Firm to Train 100 Nigerians in Solar Installation

A learning institute, GreCo Academy is seeking to train 100 Nigerians on solar installation in Nigeria.

The trainees are expected to undergo a 90- day intensive vocational training after which successful candidates will be rewarded with a three-month paid internship with a renowned Renewable Energy Company in Nigeria, according to a statement by the firm.

The training will consist of 80 days virtual engagement and 10 days physical engagement.

This initiative, according to the firm is aimed at giving the trained candidates hands-on practical experience in their journey to becoming professional solar installers in the country.

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