Connect with us

Economy

NERC Issues 40MW Licence as Power Generation Sheds 1,431MW

Published

on

electricity
  • NERC Issues 40MW Licence as Power Generation Sheds 1,431MW

In a bid to further grow the country’s power generation, the Nigerian Electricity Regulatory Commission has issued a licence to Green Energy International Limited for the generation of 40 megawatts of electricity.

GEIL, which is the operator of the Otakikpo marginal field, received NERC’s embedded power generation licence for the 40MW plant just as the total quantum of electricity on the country’s power grid dropped by 1,431.1MW within two days.

Latest industry data obtained from the Federal Ministry of Power, Works and Housing on Wednesday showed that grid power dropped from a peak of 4,804.1MW on June 10, 2019, to a low of 3,373MW the next day.

The Director, Corporate Affairs, GEIL, Olusegun Ilori, said the licence that was issued Green Energy by NERCwas part of the measures aimed at growing the country’s power generation, adding that the licence was sequel to the company’s application for it.

He said the licence would enable the company to utilise its gas resources for power generation as part of its commitment to the Federal Government to use the gas from the marginal field for power and domestic gas projects.

The company, which had earlier secured a generation licence for 12MW, increased its projected power generation capacity to 40MW following the increase in associated gas that would be produced from enhanced oil production during the second phase of the Otakikpo field.

Ilori stated that in addition to providing electricity for the company’s field power requirements and the host communities, the 40MW power plant would provide power to the Otakikpo Industrial Park.

“The park will be sited in Ikuru town in Andoni Local Government Area, Rivers State and it’s being promoted by Atlantic Industrial Park Limited,” he said.

He outlined some of the projects to be located at the industrial park include an onshore oil terminal, a 5,000 barrels per day modular refinery and a mini-liquified natural gas plant that would serve the domestic market.

The Chairman, GEIL, Prof Anthony Adegbulugbe, commended the power sector regulator for approving the licence and stated that it underscored the government’s determination to increase access to electricity for the economic development of Niger Delta.

On power generation on the national grid, it was further observed that the lowest quantum of electricity so far recorded in June this year was 2,389.9MW and this figure was posted on June 7.

In their latest performance report about the sector, the Advisory Power Team in the Office of the Vice-President explained that gas constraint remained the major challenge to power generation across the country.

The APT said, “On June 10, 2019, average energy sent out was 3,680MWH/Hour, up by 179.42MWH/Hour from the previous day. 1,501MW was not generated due to unavailability of gas. 110MW was not generated due to unavailability of transmission infrastructure, while 758.8MW was not generated due to high frequency resulting from the unavailability of distribution infrastructure. 425MW was recorded as losses due to water management.”

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.

Economy

NNPC Supplies 1.44 Billion Litres of Petrol in January 2021

Published

on

Petrol Importation - investorsking.com

The Nigerian National Petroleum Corporation (NNPC) supplied a total of 1.44 billion litres of Premium Motor Spirit popularly known as petrol in January 2021.

The corporation disclosed in its latest Monthly Financial and Operations Report (MFOR) for the month of January.

NNPC said the 1.44 billion litres translate to 46.30 million litres per day.

Also, a total of 223.55Billion Cubic Feet (BCF) of natural gas was produced in the month of January 2021, translating to an average daily production of 7,220.22 Million Standard Cubic Feet per Day (mmscfd).

The 223.55BCF gas production figure also represents a 4.79% increase over output in December 2020.

Also, the daily average natural gas supply to gas power plants increased by 2.38 percent to 836mmscfd, equivalent to power generation of 3,415MW.

For the period of January 2020 to January 2021, a total of 2,973.01BCF of gas was produced representing an average daily production of 7,585.78 mmscfd during the period.

Period-to-date Production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC) contributed about 65.20%, 19.97 percent and 14.83 percent respectively to the total national gas production.

Out of the total gas output in January 2021, a total of 149.24BCF of gas was commercialized consisting of 44.29BCF and 104.95BCF for the domestic and export markets respectively.

Continue Reading

Economy

NNPC Says Pipeline Vandalism Decrease by 37.21 Percent in January 2021

Published

on

Gas-Pipeline

The Nigerian National Petroleum Corporation (NNPC) said vandalisation of pipelines across the country reduced by 37.21 percent in the month of January 2021.

This was disclosed in the January 2021 edition of the NNPC Monthly Financial and Operations Report (MFOR).

The report noted that 27 pipeline points were vandalised in January 2021, down from 43 points posted in December 2020.

It also stated that the Mosimi Area accounted for 74 percent of the total vandalised points in Janauray while Kaduna Area and Port Harcourt accounted for the remaining 22 percent and 4 percent respectively.

NNPC said it will continue to engage local communities and other stakeholders to reduce and eventually eliminate the pipeline vandalism menace.

Continue Reading

Economy

Nigeria’s Food Inflation Hits 22.95 Percent in March 2021

Published

on

food storage

Food inflation in Africa’s largest economy Nigeria rose by 22.95 percent in March 2021, the latest report from the National Bureau of Statistics (NBS) has shown.

Food Index increased at a faster pace when compared to 21.70 percent filed in February 2021.

Increases were recorded in Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

On a monthly basis, the food sub-index grew by 1.90 percent in March 2021. An increase of 0.01 percent points from 1.89 percent recorded in February 2021.

Analysing a more stable inflation trend, the twelve-month ended March 2021, showed the food index averaged 17.93 percent in the last twelve months, representing an increase of 0.68 percent when compared to 17.25 percent recorded in February 2021.

Insecurities amid wide foreign exchange rates and several other bottlenecks that impeded free inflow of imported goods were responsible for the surged in prices of goods and services in March, according to the report.

The Central Bank of Nigeria-led monetary policy committee had attributed the increase in prices to scarcity created by the intermittent clash between herdsmen and farmers across the nation.

However, other factors like unclear economic policies, increased in electricity tariffs, duties, subsidy removal and weak fiscal buffer to moderate the negative effect of COVID-19 on the economy continue to weigh and drag on new investment and expansion of local production despite the Federal Government aggressive call for improvement in domestic production.

Nigeria’s headline inflation rose by 18.17 percent year-on-year in the month under review.

Continue Reading

Trending