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Egbin: Gas Shortage Hurting Power Generation

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  • Egbin: Gas Shortage Hurting Power Generation

Nigeria’s biggest power station, Egbin Power Plc, has said poor gas supply is hurting its plan to generate at least 1,320 megawatts (MW) of power from its station.

The power station generated 515MW as of 6.00 am on April 22, 2019, far below its installed capacity of 1,320MW.

“We have fixed all our turbines and we can do from Egbin 1,320 megawatts but there is no gas. If there is no gas, we cannot power the system. The gas available to us can probably give at best 750MW today,” the Group Managing Director, Sahara Power Group and Chairman, Ikeja Electric, Mr. Kola Adesina, said on Thursday.

In February, the chairman had promised the station would deploy 1,320MW at the end of that month but that did not come to fruition.

Egbin power is one of the Group operating entities under Sahara Power Group, an affiliate of Sahara Group.

Adesina, who was at the inauguration of the 2019 Young Engineers Programme at Ikeja Electric, said: “This is the very first time all the turbines are available and are ready to work. We should find a way, as a nation, to ensure that there is gas availability.”

According to the Group Chairman, gas suppliers just don’t want to sell to those who can use their gas but also those who can pay.

He said, “If the system of payment today is not really supportive of 100 per cent payment for gas use, then the suppliers are not motivated to give gas to the power companies.

“Secondly, if the tariff for gas today is $3.30 and the gas supplier can sell that gas at $7 or $8 to someone else, he will prefer to sell to the person who is going to pay more.

“So, if truly there is a domestic supply obligation that needs to be enforced such that the law of comparative advantage in terms of gas supply to Nigeria is made the priority, then we should definitely get enough gas for all the power plants.”

Adesina also stressed the need for cost-reflective electricity tariff, saying, “Without a cost-reflective tariff, which is the fundamental question and the elephant in the room in the power sector, we may not be able to get uninterrupted power supply as we desire.”

He noted that there were many other issues within the power value chain that must be solved.

He said, “Recently, we had a serious power outage in Nigeria. The reason for that was that the gas provider had leakage on the pipeline and in solving that leakage, every generation company had to ramp down their power because gas cannot be supplied while repair work is going on.

“I think Nigeria should not have just one pipeline supplying gas to different power plants. Nigeria should have multiple gas pipelines to all the power stations we have such that if there is a shortage in one, they can divert gas to the others.”

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 to Focus on Domestic Gas Growth, Says Kyari

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Gas Exports Drop as Shell Declares Force Majeure

FG, NNPC to Focus on Growing Domestic Gas Utilisation

Mr. Mele Kyari, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), has said the corporation is presenting focusing on growing domestic gas utilisation.

The Managing Director disclosed this on Tuesday during a virtual BusinessDay Energy Series Summit with the theme, “Nigeria at 60: Harnessing Nigeria’s Energy for the Future.”

The NNPC boss also said the corporation is committed to delivering key gas infrastructures such as Escravos-Lagos Pipeline System II, Obiafu-Obrikom-Oben Gas Pipeline, Ajaokuta-Kaduna-Kano Gas Pipeline, and Central Gas Processing Facilities.

He stated that NNPC was working on developing five gigawatts of power generation by 2022.

He said, “At the NNPC we are aggressively pursuing other gas development initiatives with the aim of improving Nigeria’s economy using the appropriate fuels.

“In terms of gas and power, we are developing and integrating gas and power infrastructure networks (increase interconnectivity) as well as stimulating gas demand (power generation, feedstock and transport, etc).”

Kennie Obateru, the NNPC spokesperson, quoted the NNPC boss in a statement issued in Abuja. He said the corporation was working on domestic gas utilisation to five billion standard cubic feet of gas per day.

He added that the Nigerian Liquefied Natural Gas Train 7 would be completed and delivered by 2024.

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Economy

Senator Rejects Aisha Umar From North-East as PenCom DG Replacement for South-East

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Law Markers Rejects President Buhari’s PenCOM Director-General Nominee

The Senate has rejected President Buhari nominated Director-General of the National Pension Commission, Aisha Umar.

Some of the Senators, who vehemently protested the nomination immediately the Senate President, Ahmad Lawan, read Buhari’s letter said Aisha Umar from the North-East should not be replacing the former DG, Mrs Chinelo Anohu-Amazu, who is from the South-East.

The aggrieved senators said the action of the president is flagrant breach of the Act that established the PenCom.

According to Section 20(1) and section 21(1) and (2) of the National Pension Commission Act 2014, states, “In the event of a vacancy, the President shall appoint replacement from the geopolitical zone of the immediate past member that vacated office to complete the remaining tenure.”

Meaning President Buhari had acted against the Act establishing the PenCom.

Speaking on behalf of the aggrieved Senators, Enyinnaya Abaribe, the Senate Minority Leader, said “I recall that the tenure of the incumbent was truncated. Therefore, the new letter from the president that has now moved the chairman of the commission to another zone may not be correct.

“It is against the law setting up the National Pension Commission and the Federal Character Commission.

“Before you (Lawan) send it to the appropriate committee tomorrow, (Wednesday), I wish to draw the attention of the committee to it.”

The Senate President, however, rejected the minority leader’s point of order and observation, saying “That is for me to interpret because I interpret the laws here. If there is any petition to that effect it should be sent to the committee.”

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Economy

Electricity Regulatory Commission Suspends Tariff Increase for 14 Days

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Nigerian Electricity Regulatory Commission Suspends Tariff Increase for 14 Days

The Nigerian Electricity Regulatory Commission (NERC) has suspended the increase in electricity tariff in accordance with the resolution reached between the Federal Government and the Nigerian Labour Congress and Civil Rights groups.

The commission suspended the new tariff implemented on September 1, 2020 for 14 days.

The NERC, in its Order No. NERC/209/2020 issued around 10.30 pm on Tuesday, describing the regulatory instrument as “NERC Order on suspension of the Multi Year Tariff Order 2020 for the electricity distribution licensees.”

The commission said, “This order shall take effect from 28th September 2020 and shall cease to have effect on the 11th October 2020.”

This is coming a day after the labour union agreed to halt a nationwide industrial action to allow the government fashioned out a way to address the recent increase in prices from pump price to electricity bill.

Labour had described Federal Government action as anti-people policy, especially given current economic realities.

The government on the other hand had said the hikes were touch necessary decision to advance the nation’s economy and further improve power supply and revenue generation necessary to deepen economic growth.

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