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Gas As Ultimate Resource For Power Generation

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Gas utility as a major resource for electricity generation is beginning to take the fron-tis-piece in Nigeria’s power sector. The product before now was limited to providing cheap energy for cooking but its necessity and impact in power generation has become so significant that the problem of regular electricity supply in this country can only be aggressively addressed with the use of gas.

There is increasing interest among Federal and State Governments as well as companies towards absolute utilisation of gas to facilitate electricity generation.

The Federal Government’s focus now is on how to increase gas supply to power plants in this country through the aggressive execution of the on-going 12 –month gas emergency time line to fire the gas-to-power scheme.

On its part, the Kwara State Government is already discussing with some investors that would use gas to generate electricity for the state. The Governor, Abiola Ajimobi acknowledged the importance of gas pipeline to the development agenda of his administration, when the House of Representatives Committee on Petroleum (Downstream) led by its Chairman, Hon. Dakuku Peterside visted him at Ibadan recently on oversight function to assess NNPP facilities there. Peterside directed that faulty gas pipelines should be repaired without delay.

The managing Director, Shell Petroleum Development Company (SPDC), Mutiu Sunmonu said Shell is taking adeguate steps to improve gas supply to power plants in the country, pointing out that the company’s Utorogu Gas Plant in Ugheli, Delta State currently products 250 million standard cubic feet per day (mmscf/d) while work is going on at a new plant designed to increase capacity to about 510 mmscf/d which will have significant impact on power generation.

While the Ministry of Power Resources, Nigerian National Petroleum Corporation (NNPC), International Oil Companies and the Nigeria Gas Company (NGC) are making efforts to bridge the gap in gas supply, the Managing Director of Niger Delta Power Holding Company (NDPHC), Mr. James Olotu says the delivery of the 1,025 megawatts into the national grid would be dependent on the availability of gas. He said that many power stations across the country are facing gas constraints which is being already addressed by the Federal Government.

According to him, Omotosho Power Plant has commenced operation and 70 megawatts added to National Grid through the plant, noting that in Sapele power station, only one unit can be fired, out of the three units because of gas constraints. With its unending complaints and sharp practices among the staff, the Power Holding Company of Nigeria (PHCN) is owing the Nigeria Gas Company an  over N40 billlion for gas supplied.

In 2010, government’s efforts at improving power supply got a boost with the commencement of gas supply to PHCN facilities through the NGC and via the Pan Ocean Oil Corporation (POOC), operator of the NNPC Pan Ocean Joint Venture. POOC currently supplies 50 million standard cubic feet per day (mmscf/f) of gas to the NGC from its Ovade-Ogharefe gas processing plant.

Pan Ocean managing Director, Mr. Festus Fadeyi once said. “We are very pleased that Pan Ocean is leading the flare-out agenda of the Federal Government and has commenced supply of gas to increase power generation to the national electricity grid”.

Nigeria Liquefied Natural Gas (NLNG), Brass Managing Director, Mr. Vincenzo Diloriuzo noted that there is enough gas in the country to ensure the success of the LNG project.

Government has over the time showed lack of political will in the issue of gas flare. Gas flare has negative effect on man and environment yet nothing was done, it takes a strong political will to actualise the gas-to-power agenda of the present administration vis-à-vis adequate generation, distribution and transmission of electricity through availability of sufficient gas. At the moment, gas produced for local consumption has grown to 930 million standard cubic feet per day (mmscf/d) and power generation from gas is more than 1829 megawatts.

Nigeria is adjudged the world’s 7th largest producer of high grade gas with zero per cent sulphur and rich in natural gas liquids with proven huge reserves of more than 182 tonnes per cubic feet, so our gas capacity should be enough to achieve the gas-to-power aspiration of the Federal Government, and make gas readily available to industrial customers that should in turn generate accelerated growth of manufacturing. We have a number of oil and gas companies that control a considerable share of the gas distribution here in the country and generally the gas market worldwide.

Utilising such companies maximally will facilitate the country’s power projects.

Not just international oil companies should participate in the gas project but indigenous firms should be given priority attention or consideration. Gas to power distribution is the boost the country actually needs now and there must be a corrupt –free national strategy for managing the gas revenues.

In his Democracy Day nationwide broadcast, President Goodluck Jonathan announced the government’s plan to ensure reliable power supply through the judicious implementation of the power sector road map which is at an advanced stage to fully privatise the generation and distribution of electricity to all levels of the country.

According to him, his administration is committed to the provision of regular and uninterrupted power supply, which he said remains unwavering, adding “we all agree that adequate and regular power supply will be the significant figure to enhance transmission with capacity and accelerate growth. It is for this reason that I remain optimistic that the reform we have initiated, the decisions we have taken so far and the plans we intend to strictly prosecute will yield desired result”.

He disclosed that to underline this commitment, a special session on power was convened to engage Custain Construction Company in contracting for gas production and delivery to ensure enough availability of power.

The President directed that the power sector reform was concluded on schedule and that the privatisation of the sector will be completed according to plan. The privatisation process, he noted, has attracted expression of interest from 131 companies across the globe.

The Federal Government has a two-point approach to the power agenda which are immediate repair of power plants as well as transmission and distribution of infrastructure in the short term and the building of power stations and provision of enablance to attract investors. It is also committed to accelerating the completion of the National Independent Power Project (NIPP) while building about 4,000 Kilometers of transmission lines and hundreds of substations, just as the design for the construction of hydro-power plants which will add about 3,000 megawatts to the national grid has been completed.

The National gas Emergency plan has not helped the problem of gas supply due to poor planning.

One yardstick to measure the level of development of any nation is its power generating capacity. Power is a critical element as it drives growth and development.

In Nigeria, generating adequate power to drive the economy has been a nagging problem and the problem continues to be insurmountable as efforts by previous governments could not yield the desired results. The availability of reliable electricity power to homes and businesses of our citizens has been one item in our national life that we have approached with so much hope and yet experiencing so much frustration over the past decades.

In recent decades, subsequent regimes have put in billions of naira to reverse the neglect and mismanagement which has characterised the power sector. The President Jonathan-led administration has expressed the commitment to bring an end to the nation’s stunted growth and usher in the fresh air of prosperity by pursuing a new era of sector-wide reform, which is driven by improved service delivery to every class of customer in the Nigeria electricity sector.

This prompted Jonathan to set up the Presidential Action Committee on Power, which he explained was to eliminate bureaucracy and inefficiency in decision-taking. He expressed the hope that the power sector reforms would succeed like that of the telecommunications sector.

Gas fired plants had been established across the country, capable of generating between 25,000 megawatts and 30,000 MW and many investors have indicated interest to invest in the power sector, so the problem of lack of gas to run existing power plants must be resolved to ensure that sufficient gas is available for more power plants that are being planned.

Nigerians are complaining that in spite of poor power supply, they are paying high electricity bills and they are expecting the government to quicken the installation of pre-paid meter in every household so that people pay for what they consume. A good number of Nigerians are also expecting President Jonathan to make a difference and to be the first leader to permanently solve the power problem in this country.

There are challenges which if not properly addressed by the government could truncate the growth plans in the gas to power initiative which include funding, regulations, sanctity of contract and community issues amongst others. The government must look into them critically and urgently too. A situation where local finance institutions are not able to muster the finance for gas sector investment even after the capitalisation exercise is totally unacceptable and will not urgur well for the sector.

 

Shedie Okpara

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Oil & Energy

NUPRC Unveils Three-pillar Transformative Vision, Pledges Efficiency, Partnership 

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has unveiled Its vision for the country’s upstream sector.
This transformative vision rests on three pillars of Production Optimization and Revenue Expansion; Regulatory Predictability and Speed; and Safe, Governed and Sustainable Operations.
The Chief Executive, NUPRC, Mrs Oritsemeyiwa Eyesan, who disclosed this at a stakeholders meeting with members of the Oil Producers Trade Section (OPTS), the Independent Petroleum Producers Group (IPPG), emerging players and other major stakeholders in the oil and gas industry, in Lagos, recently, said this aligns with President Bola Ahmed Tinubu’s renewed hope agenda and his plan to hit a production target of 2mbpd by 2027 and 3mbpd by 2030.
Eyesan plans on increasing production and revenue expansion through the recovery of shut-in volumes with economic value, arresting decline, reducing losses, and accelerating time-to-first oil—without increasing burdens or transaction cost.
This, she said, had already begun by recently “turning on the light” in a long shut-in asset.
Eyesan explained that regulatory predictability and speed can be achieved by running regulation like a service, enforcing rules transparently and making quick time-bound decisions.
The new NUPRC boss plans to strengthen governance, process safety, host community outcomes, and encourage decarbonisation through safe, governed and sustainable operations.
“Going forward, the Commission will be measured on the following key success metrics -Faster, predictable regulatory approvals, higher, more secure and sustainable production, credible licensing and disciplined acreage performance, world-class Health, Safety and Environment (HSE) and process safety outcomes, trusted measurement, transparency, governance and data integrity,” she said.
Eyesan promised that under her leadership, the NUPRC would enhance regulatory efficiency and predictability by publishing Service Level Agreements (SLAs) for all major approvals adding that the timeline to production would be reduced through proactive discussions regarding all necessary approvals, implementation of stage-gate processes, and mutual agreement on timelines with the commission.
She said “Stakeholders are encouraged to submit their projects for consideration. For matured opportunities, please submit your request latest end of Q1, 2026. This would provide a simplified and holistic framework that creates obligations for both operators and the Commission.
“The Commission will launch a digital workflow for permitting, reporting and data submissions. NUPRC will work with the industry to identify capacity gaps and develop tiered intervention in the most critical areas with immediate impact on regulatory efficiency while we harmonize our own internal processes to eliminate conflicting regulatory actions and reduce friction”.
She revealed that the NUPRC’s internal transformation programme through a project Management office is in flight saying “I will provide more details on this in the coming days”.
The NUPRC boss also convened a CCE–Operators Leadership Forum for monthly engagement with participants including all operators of NNPC, OPTS, IPPG, and emerging players adding that it would be focused on approval timelines, production restoration, infrastructure integrity, and gas monetisation and development.
“This is expected to enable the NUPRC to identify systemic bottlenecks and provide greater predictability”, she said .
Eyesan also stressed the need to improve hydrocarbon accounting and measurement by tracking every barrel produced and promptly addressing discrepancies or losses.
On host community, the NUPRC boss encouraged all operators to liaise with the commission “as we plan first engagement with host community leaders to reaffirm commitment to HCDT (Host Community Development Trust) implementation”.
She also said one of her key goals is to ensure 100% to the Petroleum Industry Act within 12 months. This, she said, will be monitored with a dedicated team situated in her office.
“The commission going forward will issue quarterly progress reports. Let therefore bring all high impact shut in fields for approval. “On the Commission’s part, a 90-day program to fast track approvals for near-ready FDPs, well interventions, rig mobilisation and other quick-win opportunities have commenced,” the CCE stated.
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Electricity Consumers Laud Aba Power for Exceeding 2025 Meter Rollout Target

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Nigeria’s newest Electricity Distribution Company (DisCo), Aba Power, has gained consumers’ commendation for the provision of more smart meters than the other 11 Discos in the country combined in 2025.
The Electricity Consumers Association of Nigeria (ECAN), Southeastern Zone, gave the commendation in a statement signed by it’s Chairman, Engr.Joe Ubani, and Secretary, Comrade Chris Okpara, and  issued at the end of its first 2026 Executive Committee meeting, held in Abakaliki, the Ebonyi State capital, at the weekend.
The statement revealed that all 12 DisCos in Nigeria provided 175,302 meters under the Meter Asset Provider (MAP) scheme and 44,104 prepaid meters under the vendor-financed framework as of the third quarter of 2025.
It said “Aba Power alone gave end-users over 100,000 smart meters by the end of last September.This means that Aba Power exceeded its 2025 target of giving its customers 100,000 smart meters by 2025, which many analysts thought was a stretch goal, meaning something that was initially thought to be impossible.
“More importantly, the data shows that Aba Power, despite being Nigeria’s youngest DisCo and the smallest in terms of population and geographical spread as it covers only nine of the 17 local government areas (LGAs) in Abia State, provided more prepaid meters than the other 11 DisCos combined”.
Citing figures sent monthly to NERC by the Head of the metering team at Aba Power, Engr. Alfred Atega, ECAN noted that the other 11 DisCos were carved out of the defunct Power Holding Company of Nigeria (PHCN) and got privatized in November 2013, stating though that the Nigerian government retains 40% shares in each.
The association disclosed that Aba Power was able to provide 122, 464 prepaid meters by the end of last year through vendor-finance arrangements with four Chinese and Nigerian metering firms adding that it supplied 116,883 single-phase meters and 5,581 three-phase meters.
Quoting the Aba Power senior brand and communication manager, Edise Ekong, ECAN explained that this utility metered all 122,464 customers from 27 feeders in and around Aba, Abia State’s economic nerve-centre.
According to the statement, Ekong said “We have actually since this year increased the number of metered customers to 133,000”, stated Ekong, also an engineer, according to ECAN.
“Work is progressing on three feeders, namely, the Omoba Feeder, the Geometric Feeder, and the Polymer Feeder as they have system issues.
“The customers on these feeders will be metered once repair and rehabilitation work on them is concluded”.
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Oil & Energy

Petrol Consumption Hits 63.7m Litres/day, Diesel Dips …….NMDPRA Report

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has released its December 2025 factsheet report, revealing an upsurge in domestic Premium Motor Spirit (PMS) supply and consumption.
According to the report, PMS supply rose to 74.2 million litres/day in December 2025, up from 71.5 million litres/day in November 2025.
Consumption also increased to 63.7 million litres/day, compared to 52.9 million litres/day in November 2025.
According to the report, the Dangote Refinery demonstrated robust performance, achieving a maximum capacity utilization of 71% in December.
Its PMS domestic supply jumped from 19.47 million litres/day in November 2025 to 32.012 million litres/day in December 2025, against an initial plan of 50 million litres/day.
In contrast, Automotive Gas Oil (Diesel) domestic supply decreased to 17.9 million litres/day in December 2025 from 20.4 million litres/day in November 2025, despite a rise in daily consumption to 16.4 million litres/day from 15.4 million litres/day in November 2025.
It reported that the Liquefied Petroleum Gas (LPG) domestic supply edged up to 5.2 metric tonnes/day in December 2025 from 5.0 metric tonnes/day in November 2025.
The state-owned refineries recorded zero production, with the Port Harcourt Refinery remaining shut down.
However, evacuation of prior AGO produced averaged 0.247 million litres/day. The Warri and Kaduna Refineries also remained shut down.
Modular refineries showed promising performance: Waltersmith (Train 2) completed pre-commissioning, with hydrocarbons introduction slated for January 2026, averaging 63.24% capacity utilization and 0.051 million litres/day AGO supply.
Edo Refinery achieved 85.43% capacity utilization, with 0.052 million litres/day AGO supply. ARADEL averaged 53.89% capacity utilization, with 0.289 million litres/day AGO supply.
Total AGO supply from modular refineries averaged 0.392 million litres/day, with other products including Naphtha, HHK, fuel oil, and MDO.
“Daily consumption benchmarks for 2025:Petrol (PMS): 50 million litres/day,Diesel (AGO): 14 million litres/day.
Aviation Fuel (ATK): 3 million litres/day, Cooking Gas (LPG): 3,900 MT/day
“Actual daily consumption (truck out):Petrol (PMS): 63.7 million litres/day,
Diesel (AGO): 16.4 million litres/day, Aviation Fuel (ATK): 2.7 million litres/day and Cooking Gas (LPG): 4,380 MT/day”, the report stated.
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