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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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REA, Mente Energy Sign MoU On Renewable Energy Localisation

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The Rural Electrification Agency (REA) and Mente Energy Limited have signed a Memorandum of Understanding (MoU), formally launching the Renewable Energy Localisation and Industrialisation Programme (RELIP).
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
Speaking during the signing ceremony at the agency’s headquarters in Abuja, the Managing Director/Chief Executive Officer, REA, Abba Aliyu, said Nigeria built significant momentum in decentralised renewable energy but until now, the economic value of that deployment has largely flowed offshore.
“By organising our national demand and building the institutional architecture to support domestic manufacturing, we are creating the conditions for investment, jobs and industrial growth to take root on Nigerian soil.
“The REA is proud to lead this programme and we welcome partners – Nigerian and international – who share our commitment to building a clean-energy industrial base that serves Nigeria first,” he said.
The founder and managing partner of Mente Energy, Tolu Osekita, said Nigeria’s renewable-energy market is one of the most significant industrial opportunities of this decade.
Osekita said “What RELIP does is to put structure around that opportunity so that capital of every origin can invest here with greater confidence and at greater scale.
“Grounded in Nigeria-first principles, this is about catalysing the maximum economic opportunity for our country – factories, jobs, investment and industrial growth built on Nigerian soil, in partnership with the world.
We are proud to stand alongside the REA in leading this work”.
The MoU establishes a five-year framework for strategic collaboration – with RELIP identified as the first priority workstream am phase 1 will be delivered over approximately six months, establishing the commercial, analytical and institutional foundations required for NREIF launch and subsequent capital mobilisation.
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
It would be noted that Nigeria is one of Africa’s most dynamic renewable-energy markets as both the public and private sectors adoption is accelerating with millions of solar home systems, hundreds of mini-grids and growing commercial and industrial uptake.
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Stakeholders Seek Unified Action To Accelerate Methane Abatement In Oil, Gas Sector

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Stakeholders across the government, civil society and industries have called for stronger regulatory coordination and accelerated action on methane abatement in the nation’s oil and gas sector.
They made the call at the Methane Emission Abatement in the Oil and Gas Industry Regulatory Dialogue organised by the Stakeholder Democracy Network (SDN) alongside other partners, in Abuja, at the weekend
The Country Director, SDN, Mrs Florence Ibok-Abasi, insisted that fragmented regulatory approaches have slowed progress in the past, noting that the current engagement aimed to align priorities, strengthen enforcement, and build lasting institutional coordination.
“We are here to align priorities, learn from our challenges, break down silos, and build genuine coordination among all stakeholders.
“Each of you brings critical knowledge; upstream expertise, midstream insights, climate policy perspective, civil society accountability, and legislative oversight. Our strength lies in bringing these together.
“Improved inter-agency cooperation is not optional; it is the foundation for better data, stronger enforcement, and credible progress toward Nigeria’s global methane pledge. We have the talent to make this work”, she said.
Ibok-Abasi said the gathering marked a turning point in efforts to harmonise regulatory approaches, describing collaboration as critical to achieving meaningful climate outcomes.
While noting that the dialogue was the first of two, the SDN boss stated that a second dialogue would be reconvene to advance initiatives and collaboration that would ensure improvement of methane abatement in the oil and gas sector.
Also speaking, the Head, Environment and Climate Change, SDN, Dr Jude Samuelson, highlighted methane reduction as one of the fastest and most effective strategies for tackling climate change globally.
Samuelson noted that the initiative was, therefore, designed to ensure regulators and operators work hand in hand to deliver measurable results.
He, however, identified the high cost of methane abatement technologies as a major constraint, calling for stronger government-industry partnerships to make such solutions more accessible and scalable in Nigeria.
“One of the recommendations that SDN has is to see how the government can work with the operators to ensure that the operators afford these technologies.
“We are also interested in bringing some of the new technologies from methane emission abatement down to the country to see how the technologies could be deployed in the oil and gas sector to ensure that emissions reduce drastically”, he said.
Speaking from the climate policy perspective, the representative of the National Council on climate Change (NCCC), Chukwuemeka Okebugwu, said methane remained a significant contributor to global warming, particularly in oil-producing countries like Nigeria.
“The oil and gas sector is a major source of methane emissions.
“So regular dialogue helps us develop practical solutions and also identify opportunities, including converting methane into useful energy instead of wasting it,” he said.
On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saudi Mohammed, highlighted the need for methane abatement.
Represented by the Technical Adviser on  Health, Safety Environment and Community, Odafe Atebe, Mohammed,
described methane abatement as a cost-effective pathway for Nigeria to achieve climate goals without compromising energy security.
In his words, “Fragmented approaches will not deliver the scale of impact required. We must move beyond discussions to coordinated action across the entire oil and gas value chain”.
On his part, Senior Manager, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Ibrahim Jilo, noted that while progress has been made, challenges remain in ensuring compliance across a diverse and evolving industry landscapNRGIe.
Jilo emphasised the importance of tailored approaches, capacity building, and sustained engagement with operators.
Representative of the Civil Society Group, Natural Resource Governance Institute, Tengi George- Kalu, who spoke from the civil society standpoint, urged stakeholders to ensure that methane reduction efforts translate into tangible benefits for communities affected by oil and gas operations.
“Collaboration is key to moving from policy ambition to real implementation and enforcement,” she stated.
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NITDA, NNPC Partner To Drive Digital Transformation In Energy Sector

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The National Information Technology Development Agency (NITDA) and the Nigerian National Petroleum Corporation (NNPC) are deepening collaboration to accelerate digital transformation in Nigeria’s energy sector.
The collaboration is being championed through the Research, Technology and Innovation (RTI) Unit of the NNPC.
In a courtesy visit by the Director, RTI Unit of the NNPC, Olatomiwa Olaniyi, to the Director-General, NITDA, Malam Kashifu Inuwa, the duo explored strategies to leverage emerging technologies to reposition the nation’s energy industry.
Speaking, NITDA boss, Inuwa, stressed the need for the NNPC to shift from traditional dependence on the exploitation of oil and gas resources to a more innovative model.
According to him, the innovative model would be anchored on the exploration of technologies such as Artificial Intelligence (AI), Internet of Things (IoT) and robotics, among other emerging technologies.
Inuwa said information technology had become a critical enabler across sectors, adding that innovation would play a key role in shaping the future of energy production, efficiency and sustainability in Nigeria.
He outlined NITDA’s strategic priorities to include promoting digital literacy, nurturing local talent, strengthening research ecosystems and advancing indigenous technology solutions.
According to him, reducing reliance on foreign technologies while encouraging home grown innovation is vital to achieving digital sovereignty and sustainable economic growth.
The NITDA boss also said the agency would support NNPC in developing a robust innovation pipeline to connect the company with Nigeria’s growing startup ecosystem.
He said startups would be engaged through incubation programmes and innovation challenges to develop practical solutions tailored to the oil and gas industry.
Inuwa further scored that NITDA’s initiatives aimed at fostering innovation among young Nigerians, including members of the National Youth Service Corps.
“Many of our corps members are already creating solutions to real-world challenges through the agency’s programmes,” he said.
Inuwa also said that effective implementation of the Nigerian Startup Act would be crucial in supporting emerging technology ventures and scaling ideas into commercially viable solutions.
Earlier, Olaniyi said the engagement was aimed at co-creating solutions and building a strong partnership framework to accelerate innovation across the energy value chain.
He emphasised that collaboration among government agencies, industry players and the technology ecosystem remained critical to achieving sustainable innovation.
Presenting the mandate of the RTI Unit, he said its focus was on driving excellence through innovation.
According to him, this would lead to improved operational efficiency, enhanced revenue generation and support sustainable growth across NNPC’s businesses, including upstream, gas, power and new energy.
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