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Power Rejection: Jebba, Kainji Reduce Generation by 416.4MW

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  • Power Rejection: Jebba, Kainji Reduce Generation by 416.4MW

Kainji and Jebba hydro power plants are cutting down on the quantum of power they generate by about 320 megawatts and 96.4MW, respectively, as a result of rejection of electricity load by distributors.

According to Mainstream Energy Solutions Limited, the private firm that took over the plants when they were privatised in November 2013, both Jebba and Kainji stations often reduce about 416.4MW of electricity due to frequent requests from the National Control Centre in Osogbo.

The Chief Operating Officer, MESL, Mr. Jose Villegas, and the firm’s Operations Supervisor for Jebba, Mr. John Onimisi, told journalists during a recent tour of the power stations in Niger State that the plants were not allowed to operate at their optimal capacity.

They noted that the NCC always instructed engineers at both Jebba and Kainji to reduce their output on account of power distribution companies’ inability to take the maximum power put on the grid by generation companies.

Villegas said, “We have eight installed power generation units at our Kainji station and six at Jebba, making a total of 14 units under the management of the MESL. The total installed capacity at Kainji is 760MW, while at Jebba, it is 578.4MW, and the sum of these figures is 1,338.4MW.

“The available capacity at Kainji and Jebba is 440MW and 482MW, respectively, meaning that the two plants generate 922MW. This is because the number of units available at both Kainji and Jebba are four and five units, respectively. We have the ability to produce more. But due to load rejection, we always receive directive from the NCC to reduce generation.”

Villegas further noted that Kainji and Jebba power stations did not get capacity payments for their available generation capacity from the Nigerian Bulk Electricity Trading company.

He explained that the frequent request to turn off the Gencos’ turbines was detrimental to their efficiency, as the plants were not designed for such intermittent operational mode.

On his part, Onimisi stated that the management of the MESL had installed water management systems at the operational sites of Jebba and Kainji stations.

He said that the innovative water management system – Inflow Forecasting System and Operational Planning Tool – had been installed at the plants’ water basin by an Austrian firm, Pöyry Energy, adding that the initiative would enable the stations to maximise their output during periods of high and low rainfalls.

“The system will provide us a long-term and short-term water inflow forecasts to support our seasonal, monthly and daily generation plans. The objective is to improve flood safety while maximising the energy output under any given constraint,” Onimisi said.

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 long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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Economy

Citigroup Sees $60 Per Barrel Crude Oil in the Next 12 Months

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Citigroup Says Crude Oil Will Reach $60 Per Barrel in a year

Despite the current economic downturn and the projected second phase of COVID-19, Citigroup, a New-York based financial service company, has said oil price could hit $60 per barrel in the next 12 months.

Citigroup disclosed this on Thursday during a virtual EMEA Media Summit titled – ‘Navigating the Future: What’s Next in a Post-COVID-19 World’.

“After a substantial underperformance in the last six months relative to several other commodities, crude will eventually bounce back to around $60 per barrel over the next 12 months,” Max Layton, European Head of Commodities Strategy, Citigroup said while giving a presentation on the outlook for commodities in the second half of 2020, and into 2021.

This means Brent crude oil would rise by at least 50 percent from the current level of $42 per barrel in the next 12 months.

“It’s going to be a function of the demand and supply but recently we have been seeing a spike in the demand for some of the commodities,” said Atiq Rehman, Head of EMEA Emerging Markets, Citigroup.

“A lot of these economies are heavily commodity-dependent, and perhaps, in the past have been guilty of not diversifying when they come under pressure. I think perhaps, this recent moves will push them to diversify away from simply commodities,” Grant Carson, Head of TRUK And Non-Presence Countries, Citigroup, stated citing Russian as one of the countries that have recorded success in diversifying away from crude oil.

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Oil Sustains $42 Price Level as OPEC Output Drops to Over Two-Decade Low

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OPEC Oil Output Drops to Over Two-Decade Low in June

Crude oil sustained $42 per barrel price level following a recent survey conducted by Reuters that showed the Organisation for the Petroleum Exporting Countries (OPEC) managed to cut oil production to over two-decade low in the month of June.

According to the survey, OPEC’s 13 members pumped 22.62 million barrels per day in June, 1.92 million barrels per day below May’s revised figure. The lowest since May 1991.

OPEC and allies, together referred to as OPEC plus, had agreed to cut oil production by 9.7 million barrels per day in the month of April to rebalance the global oil market and prop up prices amid COVID-19 pandemic.

OPEC’s share of the 9.7 million barrels per day production cut was 6.084 million bpd but OPEC delivered 6.523 million bpd cut in the month of June despite the inconsistencies from Nigeria, Angola and Iraq.

In June, Saudi Arabia reduced production by 1.13 million barrels per day to 7.53 million bpd. While Kuwait and the United Arab Emirates met their quota but struggle to fulfill the extra cuts.

Nigeria, Iraq and Angola continue to struggle in the month of June. However, their performance improved compared to May as Nigeria attained 77 percent compliance level, up from 19 percent in May.

While Iraq and Angola achieved 70 percent and 80 percent compliance level, respectively. Nigeria and Iraq have pledged to cut more in July despite their economic challenges. Angola, however, said it would not be able to cut extra oil production until October.

Brent crude oil, against which Nigerian oil is measured, rose to $42.48 per barrel on Friday as at 2:58 pm Nigerian time.

UKOilDaily

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Nigeria Labour Congress Says No Fuel Increase Amid COVID-19 Pandemic

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No Fuel Increase During COVID-19 Pandemic, Says Nigeria Labour Congress

The Nigeria Labour Congress (NLC) on Thursday rejected the new fuel price announced by the Petroleum Products Price Regulatory Agency (PPPRA) on Wednesday.

In a statement issued by Ayuba Wabba, the President, NLC, the labour demanded instant reversal to the old price, saying the move will kill businesses and worsen the nation’s poverty level at a time when nations are looking to ease economic burden of their citizens and mitigate negative impacts of COVID-19.

The PPPRA had raised the value band of Premium Motor Spirit, commonly referred to as Petrol, to between N140.80 and N143.80 per litre on Wednesday because of the recent increase in crude oil prices.

Nigeria Labour Congress argued that “PPPRA contradicted itself when it said that the latest price increase described as an “advisory” was meant to regulate a product that government claims had been de-regulated.

“That this new hike in the pump price of petrol was announced without the approval of the board of the PPPRA and the oversight ministry speaks volume of the arbitrariness and public contempt in the operations of PPPRA. We find this deeply disturbing.

“It is also very embarrassing that the PPPRA boss, while trying to defend the indefensible, appeared to be out of sorts and ready to clutch at any available straws to sell his ice block merchandise to Eskimos.

“Apart from contradicting himself that PPPRA is still trying to regulate a deregulated product through ‘advisories’, the PPPRA went on to exert more nails on the coffin of his polemics when he argued that PPPRA was just like the Central Bank of Nigeria, CBN, and the National Insurance Commission, NAICOM, that would always act to protect the public interest.

“That was how far the niceties went. The rest of the statement by the PPPRA boss was about how PPPRA plans to protect investors and increase their profit.”

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