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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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“NCDMB, MJD, Renaissance Launch Pipeline Engineering, Corrosion Control Training 

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A leading indigenous oil & gas construction and servicing company, MJD Oilfield Services Limited, in partnership with the Nigerian Content Development and Monitoring Board (NCDMB) and Renaissance Africa Energy Company Limited, has officially commenced a comprehensive 12-month Nigerian Content Human Capital Development (NC-HCD) training programme.
The programme is designed to equip 33 Nigerian graduates in engineering and related disciplines with advanced technical competencies in pipeline pigging, corrosion control, and integrity monitoring, thereby strengthening local capacity within the oil and gas sector.
The intensive, year-long initiative integrates both theoretical instruction and practical, hands-on training, with the objective of developing highly skilled and industry-ready professionals capable of contributing meaningfully to Nigeria’s energy infrastructure.
Speaking at the official kick-off ceremony in PortHarcourt, the Managing Director, MJD Oilfield Services Ltd., Olayemi Familusi, emphasised the significance of the programme and urged participants to take full advantage of the opportunity.
He also commended the NCDMB for its sustained contributions to the growth and transformation of the Nigerian oil and gas industry.
“The Nigerian oil and gas industry has undergone remarkable development since the establishment of the NCDMB,” he stated. “We commend the Board for its unwavering commitment to the advancement of Nigerian talent and the industry at large. Beneficiaries are encouraged to apply these acquired skills within the country, where opportunities for growth and impact continue to expand.”
In his address, the Executive Secretary, NCDMB, Felix Omatsola Ogbe, described the initiative as a strategic investment in Nigeria’s energy security.
Represented by the Manager, Human Capital Development, NCDMB, Mrs. Tarilate Bribena-Teide, Ogbe highlighted the critical importance of pipeline integrity expertise, particularly for key national assets such as the 614-kilometre Ajaokuta–Kaduna–Kano (AKK) Gas Pipeline.
He further underscored the Board’s strict expectations regarding discipline and commitment, insisting that a minimum attendance rate of 99.9 per cent  is mandatory.
Ogbe said “The Board will not hesitate to withdraw and replace any participant who demonstrates a lack of commitment. This programme requires full dedication and has the potential to significantly transform participants’ career trajectories.”
Also speaking at the event, representative of Renaissance Africa Energy Company Limited, Funso Alabi, reaffirmed the importance of strategic collaboration in developing a competent workforce capable of sustaining the long-term reliability and efficiency of Nigeria’s energy infrastructure.
The technical training partner, DORET Limited, presented an overview of the curriculum, which is aligned with the NCDMB Human Capital Development Implementation Guidelines (2020) and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The programme combines classroom-based learning with practical workshop sessions, with a strong emphasis on promoting local content development and technical excellence.
To ensure participants’ full engagement, the programme is fully supported with monthly stipends, meal allowances, mobilisation and demobilisation allowance, learning resources (including laptops and Personal Protective Equipment), health insurance coverage, and both local and international certifications upon successful completion.
The initiative further represents a critical pathway for young Nigerian graduates to transition into the oil and gas industry, reinforcing nation’s capacity to meet its complex technical demands with locally developed expertise.
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Fuel Price Hike: NAJA Tasks FG On Crude Supply To Local Refineries 

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The Nigeria Auto Journalists Association(NAJA ), has called on President Bola Ahmed Tinubu to take decisive steps toward stabilising Nigeria’s fuel market by guaranteeing the direct supply of crude oil to domestic refineries, particularly the Dangote Refinery, as global tensions continue to unsettle energy prices.
In a statement issued last Thursday, the association warned that the rising cost of petrol, exacerbated by the ongoing crisis in the Middle East, poses a serious threat to economic stability and the welfare of Nigerians already grappling with inflationary pressures.
NAJA argued that Nigeria must urgently insulate its downstream petroleum sector from external shocks by strengthening local refining capacity.
The association’s intervention comes amid heightened volatility in the international oil market, where geopolitical developments have continued to influence crude prices and, by extension, the cost of refined petroleum products.
NAJA noted that while recent policy measures by the federal government signal a willingness to address the crisis, more targeted interventions are required to achieve lasting stability. The group specifically referenced the government’s plan to distribute 100,000 Compressed Natural Gas (CNG) conversion kits nationwide, describing it as a commendable but insufficient response to the scale of the challenge.
According to the association, the CNG initiative represents a forward-looking approach to energy diversification, particularly within the transportation sector. However, it stressed that alternative fuel adoption alone cannot resolve the immediate pressures facing petrol consumers. Instead, NAJA maintained that ensuring the efficient operation of domestic refineries remains the most viable short-term solution.
Speaking on behalf of the association, its Chairman, Theodore Opara, urged the federal government to implement policies that would enable local refineries to access crude oil directly from the Nigerian National Petroleum Company Limited, preferably in naira. He argued that such a move would significantly reduce the exposure of domestic fuel production to fluctuations in the global oil market.
Opara, while noting that the current arrangement, under which the Dangote Refinery imports a substantial portion of its crude feedstock, undermines the refinery’s potential to stabilise local fuel prices explained that reliance on imported crude effectively ties domestic refining operations to international pricing dynamics, thereby limiting the benefits of local production.
“Dangote Refinery imports most of its crude, hence it is exposed to the effects of the ongoing crisis in the Middle East,” he said. “If the refinery gets direct crude supply from the NNPC, it will strengthen the country’s long-term energy diversification strategy and reduce exposure to international supply shocks.”
The NAJA chairman further noted that Nigeria’s continued dependence on imported refined petroleum products remains a major vulnerability, despite its status as Africa’s largest crude oil producer. He described the situation as economically unsustainable, particularly at a time when global uncertainties are driving up energy costs.
“If Nigeria’s major refineries, including Dangote, receive crude locally and transact in naira, the country will reduce its vulnerability to global market disruptions. It will also help stabilise the downstream petroleum sector,” he added.
While acknowledging the potential of the CNG programme to reduce dependence on petrol over time, NAJA insisted that the backbone of Nigeria’s energy strategy must remain anchored in efficient domestic refining. The association warned that failure to address crude supply constraints could undermine ongoing efforts to reform the sector.
“CNG is a good transition policy for transportation, but the backbone of Nigeria’s fuel supply must still come from efficient domestic refining,” Opara said.
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FG Advances $20bn Nigeria-Europe Gas Pipeline Plan

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The Federal Government said it has progressed in its plan on the proposed transcontinental gas pipeline aimed at delivering its vast natural gas to European markets.
The proposed pipeline, still at an early development stage, is being advanced by a consortium of global industry players and would be subject to extensive technical, commercial, and regulatory processes.
Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, who spoke alongside key industry stakeholders, during discussions on the proposed pipeline, at a meeting in London, United Kingdom, described the engagement as both timely and historic, adding that Nigeria is poised to attract investors into its gas sector.
In his words “Nigeria is set for investors to take advantage of this natural gas. The Petroleum Industry Act and the executive orders by Mr President for the petroleum sector have set a conducive environment to attract investments to the sector.
“We must be intentional in the utilisation of our resources. So long as we have these reserves, we must take advantage of them and better the lives of those in the region,” Ekpo said.
The minister further noted that, with appropriate financial backing in place, he sees no obstacle to the project coming to fruition.
In a statement signed by the Spokesperson to the minister, Louis Ibah, Ekpo noted that the move is aimed at strengthening energy security and unlocking long-term economic value.
The proposed pipeline, described as a transformative gas corridor, is designed to transport up to 30 billion cubic metres of gas annually from Nigeria’s southern reserves through Chad and Libya, before extending subsea to Sicily, Italy, and into the broader European market.
According to the statement, stakeholders expressed optimism that the proposed pipeline project would redefine Nigeria’s role in the global energy market while deepening ties with Europe.
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