T he Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has announced an additional volume of 2.5 billion cubic feet per day (bcfd) of gas to the national grid from now till 2017 under a renewed medium term gas supply commitment from the various gas suppliers.
The Minister who disclosed this during the recent signing of a Memorandum of Understanding (MoU) with various gas suppliers to clear the N36.9b legacy debts owed to some gas producers noted that over 80 percent of the additional gas volume will go to the power sector to support an additional 5-6 GW relative to today’s capacity.
L-R; GMD NNPC, Dr. Joseph Thlama Dawha, CBN Governor Mr Godwin Emefiele CON, Minister of Petroleum, Mrs Diezani Alison Madueke, Minister of Power, Prof Chinedu Nebo, and Chairman NERC Representatives Commissioner Eyo Ekpo as HMPR, Minitser of Power,xCBN Governor, Chairman NERC, CEOs of IOC and NNPC GMD Sign MoU on Gas Supply at the Transcorp Hilton Abuja. PHOTO; SUNDAY AGHAEZE. NOV 18 2014
Mrs. Alison-Madueke emphasised that payment of the legacy debts which is the fallout of the intervention package brokered by the inter-agency committee made up of the Central Bank of Nigeria, the Ministries of Petroleum Resources and Power and the Nigerian Electricity Regulatory Commission (NERC) would ensure that appropriate security mechanism would be in place to ensure that gas sold to the power sector would be paid for thereby creating a viable and sustainable gas sector.
“Let me assure on short term progress in gas supply too. Today, the Utorogu/Ughelli gas plant is producing at its highest level as production ramps up from about 350mmcf/d a few months ago to over 400mmcf/d currently. We are also making good progress in the construction of the bypass gas pipeline to Alaoji. This will add almost 100mmcf/d of gas to power Alaoji and Calabar IPP before the end of December. In addition, supply to Gbaran IPP is also being finalized for readiness before the end of December,’’ the Minister said.
Mrs. Alison-Madueke noted that with these projects, the target of 5000MW by the end of the year would be met from a gas availability perspective.
Speaking earlier at the signing of the MoU, the CBN Governor, Mr. Godwin Emefiele, said that the MoU signaled the collaboration efforts among the Ministry of Petroleum Resources, Ministry of Power and NERC to intervene in the Nigerian electricity supply industry (NESI) with a view to resolving its liquidity challenges.
He said that other power sector value chain players must also agree to specific service-related commitments, which include, gas suppliers’ commitment to assured gas supply at higher volumes; and generating and distribution companies’ commitment to utilizing the funds for equipment/infrastructure acquisition, refurbishment and/or upgrade.
Emefiele explained that all parties will also be subject to additional oversight mechanism to be developed by NERC and CBN to ensure business continuity and that all power sector players meet obligations that are critical for continued electricity supply in order to ensure sustainability of gas to power projects in the country.
PIB ‘ll Boost Nation’s Hydrocarbon Reserve – Dr. Okon
The Nigerian National Petroleum Corporation (NNPC) has noted that when passed into law, the Petroleum Industry Bill before the National Assembly would shore up the nation’s hydrocarbon reserve and impact the economy positively.
The Group Coordinator, Corporate Planning and Strategy of the NNPC, Dr. Tim Okon made this known in a panel discussion recently in Abuja.
Dr. Okon stated that the PIB would usher in an efficient acreage management system of the nation’s oil and gas resources which would naturally increase the national reserve and add more value to the petroleum sector.
He said the NNPC in the post-PIB era would become commercially driven and focus primarily on the oil and gas business without the encumbrance of regulatory function, adding that the Corporation would join the league of the Petronas and Petrobras of this world in the hydrocarbon business.
Dr. Okon noted that the NNPC is fully prepared for the passage of the bill, stressing that with the recent divestment of some of the International Oil Companies, the NNPC and its subsidiaries have risen to the occasion of managing some of the divested assets.
He added that the passage of the PIB has become very imperative as it would promote transparency and accountability in the oil and gas sector.
The NNPC Chief strategist said the delay in the passage of the bill has created an atmosphere of uncertainty which has stalled massive inflows of investment into the industry. He called on the National Assembly to expedite action and pass the PIB, adding that the bill, when passed into law, would promote the growth and development of the nation’s hydrocarbon business and generate massive employment opportunities for Nigerians in the sector.
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