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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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Electricity Boost: Abia Launches Waste-To-Energy Project 

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Abia State Governor, Alex Otti, says the state is no longer experiencing power failures caused by frequent collapses of the national grid.
This is as his administration begins investing in converting organic waste Into electricity.
Speaking to the media at the State Government House, last Thursday, Governor Otti revealed that waste products are now being transformed into renewable energy through Biogas.
He stated that the state is no longer fully under the supervision of the Nigerian Electricity Regulatory Commission (NERC).
Otti explained that the new arrangement has been negotiated and accepted by the the Enugu Electricity Distribution Company (EEDC), the utility firm responsible for power distribution in Abia.
In his words “This is a pilot programme. Instead of discarding waste, we can convert it into clean energy, enabling us to power numerous areas, particularly the Umuahia In-Farms.
 “I had earlier reported that our proposals to EEDC have been accepted, and we are in the process of raising funds to settle obligations with them.
“On 24th December, the Abia State Electricity Regulation Authority took iver the regulation of power from NERC. From now on, generation, transmission, and distribution will be regulated within the state.”
Otti highlighted that the initiative is aimed at improving efficiency and achieving energy independence, similar to how Aba Power provides electricity for the Aba In-Farms.
“You may Have noticed that during some recent national grid collapses, our state remained unaffected because a significant portion of our power infrastructure is now under our authority,” he said.
Governor Otti further expressed optimism on the Progress of the programme saying “That is the entire purpose acquiring the Umuahia in-farms, and i am pleased with the advancements we are making in this regard.”
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NUPRC Pledges Transparency In 2025 Oil Pre – Bid Round

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reiterated its dedication to a transparent process for the 2025 Oil Bid Round.
The Chief Executive, NUPRC,  Mrs Oritsemeyiwa Eyesan, while speaking at a Pre-Bid Webinar, at the Weekend, emphasized that the process is an opportunity for investors to participate in a stable, rules-based system that fosters genuine value creation.
Eyesan disclosed that the process involves five steps including “Registration, Pre-qualification, Data acquisition, Technical bid submission, and Evaluation and Commercial Bid Conference.
“This has been done to increase competitiveness and a response to capital mobility,”.
“Only candidates with strong technical and financial credentials will move forward, chosen through a transparent merit-based process”.
She noted that with President Bola Tinubu’s approval, signature bonuses have been adjusted to reduce entry barriers, prioritizing technical capabilities, credible programs, financial strength, and production delivery speed.
“Let me state clearly that the bid process will comply with the PIA 2021, promote the use of digital tools, for smooth data access and remain open to public, and international and institutional scrutiny through partners like NEITI, and other oversight agencies. Indeed, transparency is an integral part of our process,” she stated.
“To further strengthen the process, today’s Webinar, the first of its kind, aims to clarify bid requirements and helps you participate effectively before the tender deadline as well. We also invite your questions and feedback to improve the licensing round process and outcomes.
“In closing, let me emphasize that the Nigerian 2025 Licensing Round is not merely a bidding exercise; it is a clear signal of a reimagined Upstream Sector anchored on the rule of law, driven by data, aligned with global investment realities, and focused on long term value creation”, the NUPRC boss stated.
The 2025 Licensing Round, launched on December 1, 2025, offers 50 oil and gas blocks across various terrains, including frontier, onshore, shallow water, and deep water.
Since then, all licensing materials have been posted on the Commission’s portal, and dedicated support channels have been created to address applicant inquiries.
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Dangote Refinery Affirms 75m Litres PMS, 25m Litres Diesel Daily Supply 

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Dangote Petroleum Refinery has reaffirmed its capacity to supply fuel volumes significantly more than Nigeria’s estimated domestic consumption.
The refinery said it can supply 75 million litres of Premium Motor Spirit (PMS) daily against an estimated national consumption of 50 million litres.
The company, in a statement issued to Journalists, at the Weekend, also said it has capacity to supply 25 million litres of Automotive Gas Oil (AGO) compared with an estimated daily demand of 14 million litres, along side capacity to supply 20 million litres of aviation fuel daily, above the estimated maximum domestic consumption of four million litres.
According to the refinery, the availability of volumes above prevailing demand provides critical supply buffers, enhances market stability and reduces reliance on imports, particularly during periods of peak demand or logistical disruption.
“The management of Dangote Petroleum Refinery would like to reiterate our capability to supply the underlisted petroleum products of the highest international quality standard to marketers and stakeholders,” the company said in a public notice.
The refinery reaffirmed its commitment to full regulatory compliance and continued cooperation with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stating that its supply approach is aligned with ongoing efforts to ensure market stability and orderly downstream operations.
The refinery said it remains fully engaged with regulators and industry stakeholders in support of Nigeria’s national energy security objectives, as the country deepens its transition from fuel import dependence to domestic refining.
It expressed willingness to work closely with market participants to ensure that the benefits of local refining, including reliable supply, competitive pricing and improved market discipline are delivered consistently to consumers nationwide.
The statement added “With domestic refining capacity expanding, stakeholders believe Nigeria is increasingly positioned to reduce foreign exchange exposure, improve supply security and strengthen downstream efficiency through locally refined petroleum products”.
By: Lady Godknows Ogbulu
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