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