Oil & Energy

Towards Stable Electricity Supply In Rivers

Published

14 years ago

February 13, 2012

The Rivers State Government recently reaffirmed its commitment to ensuring stable and constant electricity in the State.

The State Governor, Rt. Hon. Chibuike Rotimi Amaechi who disclosed this at the Inter-denominational church service to mark this year’s Armed Forces Remembrance Day assured that citizens of the State would by December this year enjoy stable and constant electricity.

Acknowledging the challenges facing the people of the state, the governor said he would tackle them promptly, adding “Government is fully aware of its commitment to the people who elected me into office”. He reaffirmed that plans were on-going to provide stable and constant electricity in the state by December 2012.

To further reaffirm this commitment, the government signed a Memorandum of Understanding (MoU) with Shell Nigeria Gas, a subsidiary of the Shell Petroleum Development Company (SPDC) for the development and distribution of natural gas within Port Harcourt and its environs. A similar agreement was also signed with Oando Gas and Power on the same issue as its determination to reposition the state in the development of the gas sector as well as help in improving the power plans of the state government.

The MoU represents a key step in not only the gas masterplan implementation but will also put the state reputation as the energy hub of the country and improve the socio-economic benefits of the state. This can only be possible if the parties keep to the agreements. The MOU covers a period of thirty years.

Rivers State is a major oil and gas province in the Sub-Saharan Africa with more than 40 percent of Nigeria’s crude oil reserves and 55 percent of natural gas reserves located in the state. Many key players in the Nigerian Petroleum and natural gas industry have their regional offices in Port Harcourt, the capital of the state.

However, despite the more than 50 years of active operation in the state, there is very little synergy between the oil and gas industry and the local economy, particularly with respect to power distribution and transmission, and effective participation of indigeneous entrepreneurs.

The on-going efforts by the Rivers State government at repositioning the power sector would boost electricity supply in the state and take the state to a greater heights in our pursuit of making electricity safe, reliable and affordable. There is currently an increase in electricity generation in the state but that would not solve the problem until there is a corresponding increase in distribution.

The vision of the present administration in the State is to transform the economy through efficient use of energy resources as well as to position Port Harcourt as the Energy capital of the West African Sub-Region and the Gulf of Guinea. The use of gas resources to power electricity in Rivers State will enable its people get the benefits of the resources of their land.

One very important aim of the state government from the time past has been to develop its gas turbine into one of the leading Independent Power Project (IPP) in the country and the government had continued to offer a wide range of solutions to the problem of power shortage for which several feasibility studies and plans have been done. The government has continously placed priority on the development of the power sector in the state, hence the Omoku gas turbine, Trans-Amadi and Eleme gas turbines had undergone processes of power distribution and transmission, yet their aims are not fully achieved, though the state power station at Oyigbo (Afam) is giving a boost to the power project of the state.

The government of Amaechi believes in serving as a reference for excellence, this, he wants to show in the power supply as he did in the social responsibility. The governor’s reassurance to fulfil his promise of providing adequate electricity to the entire state before the end of his tenure, no doubt, must be backed with action.

At a meeting with Chiefs, elders, youths, women and opinion leaders of communities whose lands would be acquired for the construction of the planned 33/11/KV injection Sub-Stations and Rows for transmission lines, the state Commissioner for Power, Hon. Augustine Wokocha reiterated that government was committed to providing a stable and an affordable electricity supply in the state.

He advised communities against unnecessary interruption that would impede the course of the surveyors and valuers, stating the resolve of government to complete its projects in record time. “Communities should cooperate with surveyors and valuers as well as the contractors that would handle the projects to enable them carry out power work that would be beneficial to both the government and the communities”, he stressed.

Port Harcourt is a very comfortable investment zone and the state continues to make its mark and contribution towards sustainable power production and distribution. It is hoped that the government will establish an Independent Power Project (IPP) that will power the business sector in the state and have other things that will enable the state have independent power plants in the strategic areas. It is also hoped that the state would work with the Federal Government plans to privatize the power sector, bearing in mind that power is still in the exclusive list.

The government has so many things to put in place before it can go into the Independent Power Project which President Goodluck Jonathan is trying to do in the reodmap on power sector reform. The Federal Government’s gas-to-power initiative, the passing into law of the Nigerian Local Content Bill and other initiatives by the Rivers State government from its Petroleum and Natural gas resources would provide the necessary enabling materials for the achievement of stable and constant electricity supply to the state.

With the Federal Government’s intention to ensure that oil companies end gas flaring by December this year, it is expected that the Rivers State government would key into the programme to make energy-driven economy for the state as it will attract investment opportunities and create jobs for the people in the power and industrial sectors.

The Nigerian Electricity Regulatory Commission (NERC) has put in place necessary mechanism in order to have an acceptable platform for the proposed electricity tariff review and already collating materials to work with, with a view to issuing a new cost of electricity in the country. This will usher in a subsidised cost of electricity for ordinary Nigerians who may not be able to afford the proposed increase in tarrif, especially those in the rural areas and others. More than 40 per cent of the electricity in the country are generated privately for greater efficiency.

This calls for the Federal Government to reduce import taxes paid on components used for producing power equipment. Such reduction of import duties would encourage investors and governments in the country to produce more power to improve the supply situation, create jobs and wealth for the country. Regular and efficient power supply remains the only infrastructure that is required to install the full entrepreneurial energies of the state and nation’s economy, and unleash unprecedented economic growth.

The Rivers State government’s focus is to make progress in optimizing its gas for distribution to power industries and key into the President’s gas-to-power framework or masterplan. The power sector in the state, in the third quarter of last year showed good signs of improvement which began after the turn-around maintenance and upgrading of the electricity supply and distribution by the State government in conjunction with the Power Holding Company of Nigeria (PHCN) in the State. Residents of Port Harcourt and the state are concerned about whether the tempo can be sustained to end the blackouts suffered in recent past. Thanks to the Amaechi government because the situation which was described as failure and epileptic has resurrected with unending power supply chain-transmission, distribution and generation.

In the electricity business, if any section of the chain is insufficient or works at sub-optiomal level as a result of poor equipment or operation, it would affect other sections, so the state government in its commitment to providing electricity for the people overhauled the entire supply chain of the power sector in the state, which is currently paying off. Rivers people and residents of Port Harcourt and its environs are now enjoying improved power supply and it is hoped that by the end of this year and with the plans underway, there will be substantial increase in power generation in the state, even with the envisaged growth in gas supply next year.

The current development exemplifies the government’s seriousness in ensuring stable and constant electricity by December this year and also underscores the government’s capability in managing the complex synergies in the power sector reform which seems to task more responsibilities to the PHCN. Seven years after the Power Sector reform Act 2005, we ought to have moved to the point of counting our gains of the reform as against the benefits lost. In the light of emerging realities, there is a lot more that needs to be done to secure an anchor to the reforms which are proving unworkable.

It will be a worthwhile experience for Rivers people to have a telling reference of the improvement or stability in power supply in the State from the Governor Amaechi-led administration. The State Power Station in Afam which is off-grid is on course and it is giving what the metropolis wants and enabling the state deliver services that are so critical to the welfare of the people.

The governor has thought reasonably by trying to replicate the model in his state. What the nation needs at this time are scores of compact micro-schemes to deliver power off-grid to take the wind out of the sail of the inept PHCN.

Shedie Okpara

Oil & Energy

Resource Wars Are Here and Oil Is the First Casualty

Published

2 weeks ago

March 30, 2026

The Tide

In just over a year, the world saw several instances of a choked supply of commodities indispensable for today’s economies and military capabilities.

From China’s restrictions on rare earths and critical minerals supply to the de facto closure of the Strait of Hormuz, policymakers and analysts began to realize that the control of oil, critical minerals, rare earths, and magnets is as important as building and maintaining stockpiles of advanced weapons. It also became clear that without these resources, defense and military capabilities could be weakened. The actual arms race goes hand in hand with the new battle for the resources that underpin economic, manufacturing, and advanced military development.

“Great-power competition has returned to basics: who controls the physical resources that modern economies and militaries run on,” Alice Gower, a partner at London-based political-risk advisory firm Azure Strategy, told the Wall Street Journal.

“Energy, critical minerals and industrial capacity are leverage, not just economic assets,” Gower added.

The war in the Middle East and the blockage at the Strait of Hormuz laid bare the reality of choked energy supply. The world’s most vital oil and LNG chokepoint, through which 20% of daily global trade flowed before the Iran war, has been essentially closed for most tanker traffic for more than three weeks.

The massive supply shock, the worst disruption in the oil market in history, showed that the world is dependent on energy resources, and that geography and actual physical supply matter. With so much oil and gas stranded in the Middle East, oil prices spiked to above $100 per barrel, natural gas prices in Europe doubled, and Asian spot LNG prices hit multi-year highs.

The precarious situation in the Middle East is reverberating across Asia, the region most dependent on oil and LNG supply from the Persian Gulf. Asian refiners pay sky-high premiums for non-Middle Eastern crude, many are considering cutting or have already cut processing rates, and countries have started to enact fuel-preserving measures, from four-day work weeks to bans on fuel exports.

In Europe, the gas refilling season will be the toughest yet, as Asia is outbidding Europe for spot LNG supply after Qatar’s LNG is effectively sidelined and full capacity may not return for up to five years following Iranian missile attacks last week.

Even the ‘energy independent’ United States, the world’s top oil producer, is not independent when it comes to global supply shocks of such magnitude.

The national average price of gasoline is approaching $4 per gallon nationwide, more than $1 a gallon compared to a month ago, before the start of the war.

Oil is a global resource, traded on a global market, and prices reflect fundamentals, although they have been driven by hectic trading activity on geopolitics in recent weeks. But the fundamentals show that there is no resource available to plug the gap that has opened in Middle Eastern supply. Producers are slashing output due to a lack of storage capacity, which further delays a rapid recovery in supply when this mess ends.

All this goes to show that whoever controls the Strait of Hormuz has enormous leverage on inflicting global economic pain.

While the world is focused on the Strait of Hormuz, the race for rare earths and critical minerals continues, with the U.S. and Western countries scrambling to dent China’s dominance.

Since China restricted exports of rare earth elements early in 2025, Western countries have raced to create mine-to-magnet supply chains to reduce dependence on Chinese supply in the key military and automotive industries.

China holds a 59% share of the mining of rare earths, 91% in refining, and a whopping 94% in magnet manufacturing, the International Energy Agency (IEA) estimates.

The U.S. has responded by taking stakes in minerals mining companies, the launch of a U.S. Strategic Critical Minerals Reserve, known as Project Vault, and is leading efforts to break the Chinese stronghold on the pricing of these minerals critical for the defense and auto industries and national security.

Chinese dominance could be eroded, but it would take years.

Still, rising neodymium-praseodymium (NdPr) supply from countries like the U.S. and Australia is set to reduce China’s market share to 69% by 2030 from 90% in 2024, Bloomberg Intelligence (BI) said in new research this month.

“We’re seeing a surge in rare-earth investment as modern technologies demand more critical materials,” said Jack Baxter, Global Metals & Mining Analyst at BI and co-author of the report.

“That said, we anticipate a significant shortfall in supply due to trade uncertainties, with lead times as long as 10 years to get new material out of the ground,” Baxter added.

“This will give pricing power to the few producers that currently are able to supply critical materials outside of China, fracturing the globalized market.”

Amid fractured markets and high geopolitical uncertainty, one thing is certain – the next arms race, alongside the actual arms race, will be for control of key resources such as oil and critical minerals.

By Tsvetana Paraskova

Oil & Energy

Transcorp Energy, Renewvia Partner On Renewable Energy Gap

Published

2 weeks ago

March 30, 2026

The Tide

Transcorp Energy Limited and Renewvia Solar Nigeria Limited have signed a Memorandum of Understanding to jointly develop renewable energy projects across Nigeria.

The move is aimed at addressing the persistent power deficit that has crumble businesses in the nation.

The agreement also outlines a longer-term plan to expand operations across Africa, positioning both firms to tap into growing demand for clean and reliable electricity.

The partnership would target commercial, industrial and residential consumers, as well as underserved communities, through a mix of off-grid and grid-connected energy solutions.

Beyond electricity provision, the collaboration would explore the aggregation and monetisation of Renewable Energy Credits generated from the projects, adding a commercial layer to the clean energy rollout.

The Managing Director and Chief Executive Officer, Transcorp Energy, Chris Ezeafulukwe, said the initiative aligns with the company’s broader strategy to expand access to sustainable power.

He noted that combining grid and decentralised energy systems would enable the company to deliver reliable electricity directly to end-users across different segments of the economy.

Chief Executive Officer of Renewvia, Trey Jarrard, described Nigeria as a critical market for the company’s African ambitions.

According to him, the partnership provides a platform to scale operations rapidly by leveraging established infrastructure and local expertise, while delivering cost-effective and resilient energy solutions.

Both companies said the agreement lays the foundation for a scalable pan-African renewable energy business, capable of supporting diverse markets and accelerating the continent’s transition to cleaner power sources.

The collaboration comes amid increasing pressure on governments and private sector players to deploy sustainable energy solutions to bridge electricity gaps, reduce reliance on fossil fuels, and support economic growth across Africa.

Oil & Energy

IYC Tasks Niger Delta Governors On Oil Field Bidding ….Decries Exclusion of Host Communities

Published

2 weeks ago

March 30, 2026

The Tide

The Ijaw Youth Council (IYC) Worldwide has raised concerns over the continued exclusion of host communities from the governance of oil resources, urging Niger Delta governors to take decisive steps by bidding for oil blocs and marginal fields.

The council warned that failure to act would allow external interests to continue dominating the region’s oil assets, despite their location within host communities.

Secretary-General of the council, Maobuye Nangi-Obu, started this at the stakeholders’ meeting organised by the Pipeline Infrastructure Nigeria Limited , with participants drawn from Rivers, Abia and Imo States, in Port Harcourt, recently.

“It is time for state governments in the Niger Delta, especially Rivers State, to form oil companies that can bid for marginal fields within their territories”, he said.

Nangi-Obu expressed concern over the reported listing of about 25 marginal oil fields for allocation, noting that many were located in host communities but allegedly being assigned to non-indigenes.

In his words “They sit in Abuja and decide what happens in our region, yet we are not part of the oil governance of our own resources”.

He explained that marginal fields, though considered uneconomical by major oil firms, remain viable for indigenous operators, adding that their allocation had continued to fuel grievances in the Niger Delta.

The IYC scribe also warned of the implications of directional drilling, describing it as a growing threat to host communities.

“There could be oil wells in your community, and somebody elsewhere could be drilling that oil without your knowledge,” he cautioned.

On environmental concerns, Nangi-Obu condemned the persistent gas flaring in the region, blaming both international and local operators for failing to invest in gas processing infrastructure.

He, however, commended Pipeline Infrastructure Nigeria Limited for its engagement with host communities.

“Pipeline Infrastructure Nigeria Limited is doing the right thing by engaging stakeholders. Not all companies are doing what they are doing,” he stated.

Traditional rulers at the meeting, further acknowledged improvements linked to the company’s activities in their areas.

The Eze Ekpeye-Logbo, King Kevin Anugwo, represented by Dr Patricia Ogbonnaya, noted that “aquatic life that disappeared due to pollution is gradually returning,” attributing the development to improved environmental conditions.

Similarly, Chairman of the K-Dere Council of Chiefs, Chief Batom Mitee, said, “There is now peace in our community,” stressing, increased oil production must translate into tangible benefits for host communities.

By: King Onunwor