Oil & Energy

Egbin’ll Function To Installed Capacity After Repairs – CEO

Published

13 years ago

August 26, 2013

The Chief Executive Officer
of Egbin Thermal Plant, Mr Mike Uzoigwe, says the repairs of its sixth turbine unit (ST-06), will add 220 Megawatts (MW) to the national grid.
Uzoigwe said this when he inspected the ongoing repairs of the turbine in Lagos recently.
According to him, the plant may have waved over, its installed capacity generation challenges barely seven years down the line.
He said the power plant, which had an installed capacity of 1,320 MW, had suffered setback for some years due to ageing parts and paucity of funds to upgrade the facility.
The Tide source, however, reports that the plant was generating about 700 MW before it experienced a system collapse.
Uzoigwe, who confirmed the system collapse, added that power would be restored in a short while due to its new black-starting mechanism.
“Before now, system collapse takes power plants in Nigeria about five days to restore electricity, but the black-starting technology would make it possible within hours.’’
Uzoigwe, who conducted journalists round the plant, expressed joy that the plant would be operating at full capacity after about seven years of partial operation.
He said the plant was constructed about 30-years ago to operate on six turbine units at 220 MW each, until 2006 when the sixth unit exploded due to some water tube challenges.
The chief executive officer said the contract for repair was awarded to the Original Equipment Manufacturer, Hitachi of Japan.
According to him, the company has spent so much money to secure some parts of the plant.
He said between 2011 and 2012, it ordered and replaced all the cannibalised spares and also awarded contract for the final repairs at approximately N1 billion.
“Unit six job will last for 90 days after which the unit should be handed over completely repaired and ready for operation.
“Work effectively started on July 1, 2013, and still going on. This will lay to rest the rumours that money meant for ST-06 repairs was diverted some times in the past,” he said.
He explained that the delay in commencing the job was because it did not get the nod of the Bureau for Public Procurement (BPP) early enough to award the contract.
This, he explained, was due to BPP’s exhaustive procedure of making sure the contract price was right.
“We have started anyway and it is hoped we will deliver on time. We are in the interim discovering everyday some other parts we need to replace.
“This will cost some more money and we will soon take it up with the Minister of Power to source for more funds,” he said.
Uzoigwe welcomed the privatisation exercise, adding that although the takeover of the assets would soon happen.
According to him, the management has a philosophy of continuation with all what it is suppose to be doing until the day the new investors takeover.
Reports say that works were ongoing at the plant as experts handling different parts of the turbine were seen laying some of the new parts strategically around the affected turbine.
Uzoigwe, who gave estimates of parts of the plant, accordingly, said repair of damaged boiler was awarded to KEPCO at 17.95 million dollars which was almost 100 per cent completed.
According to him, the dry storage part was awarded to Igodi at N9.8 million, while the emergency repairs of generator rotor and BFP motor rotors were awarded to Maurubeni at 6.79 million dollars.
He said the total replacement of the damaged reheater outlet coils and comprehensive inspection of reheater inlet coils were awarded to KEPCO at 4.94 million dollars and N74. 61 million, respectively.
He added that the supply of new AVR cubicle for thyristor excitation system was awarded to Marubeni at 117.9 million Yen, while the repair of LP turbine rotor journals was awarded to G.E at 1.52 million dollars.
According to Uzoigwe, all the listed parts are almost 100 per cent completed, except for the supply of cannibalised items which are at 80 per cent completion.

Oil & Energy

Abia Secures $145m Investment Commitment To Establish Solar Manufacturing Plant

Published

5 days ago

July 20, 2026

The Tide

Abia State Governor Alex Otti has welcomed a proposed $145 million investment to establish a solar manufacturing plant in Isiala Ngwa South Local Government Area, describing it as a major boost to the state’s industrial and renewable energy ambitions.

The development was disclosed in a statement issued last week by the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, after Otti received the investors, led by their Team Leader, Dr. Oko Jaja, at the Government House in Umuahia.

During the meeting held on July 16, 2026, Otti said he was encouraged that the proposed project had reached the Final Investment Decision (FID) stage, with the investors committing up to $145 million to establish the solar manufacturing facility in the state.

What they are saying

Governor Otti welcomed the investors’ commitment, saying the project had progressed to the stage where they were ready to invest up to $145 million in Abia.

“I’m glad that at least you have reached the final investment decision where you are investing up to $145 million.”, he said.

He also assured the investors of the state’s continued support, noting that the government had already provided the land required for the project and remained willing to address any additional requirements needed to facilitate the investment.

“We had to do everything that was required to make the land available. And we would like to assure you that if there is any other thing that you need for this investment, do not hesitate to let us know”, the Governor said.

Speaking on behalf of the investors, Dr. Oko Jaja said the project, being developed with Chinese partners, had advanced significantly and that the first tranche of funding is expected to be released by September 2026, paving the way for implementation.

Also speaking, the Chief Executive Officer of MD NWAKANMA NIGERIA Limited, Dennis Madu Nwakamma, said construction of the plant is expected to commence by the end of September under a public-private partnership with the Abia State Government. He added that the project will manufacture solar panels and related products while creating jobs and providing technical training for young people in the state.

The proposed investment adds to Abia’s growing push into the renewable energy sector. The state is among the few in Nigeria with a regulated electricity market and is home to Geometric Power, whose integrated power system supplies electricity to Aba and surrounding communities.

The development also follows Governor Otti’s recent commissioning of an upgraded 5MVA power station at Abia State University, which doubled the facility’s capacity from 2.5MVA to improve electricity supply within the institution.

Earlier, in February 2024, he commissioned the 188MW Geometric Power Plant, a landmark project aimed at expanding power generation and improving electricity access in the state.

The proposed solar manufacturing facility is the latest in a series of investment projects announced for Abia as the state seeks to attract private capital into manufacturing and infrastructure.

In March, Governor Otti commissioned a $35 million industrial facility in Aba, part of a planned $100 million investment expected to deepen the city’s manufacturing base and attract additional private sector activity.

The state government has also completed the acquisition of Afro Beverages from the Asset Management Corporation of Nigeria (AMCON) after paying N500 million to facilitate the revival of the company.

Separately, the Federal Government and the African Development Bank have urged the Abia State Government to resolve administrative delays affecting the commencement of the $263.8 million Abia State Integrated Infrastructural Development (ABSIID) project, which is expected to strengthen infrastructure and support economic growth across the state.

Oil & Energy

FG Urges Against Operators’ Actions That Could Distabilise Market

Published

5 days ago

July 20, 2026

The Tide

The Minister of Power, Chief Joseph Tegbe, has called on operators in the Nigerian Electricity Supply Industry (NESI) to avoid actions that could affect the decentralised electricity market.

The minister made the call at the workshop on Legal, Policy and Regulatory Harmonisation between federal and state institutions on the Decentralisation of the Nigerian Electricity Supply Industry (NESI), in Abuja.

Tegbe said the Federal Government retains an important leadership role, while state governments now have expanded responsibilities; the Nigerian Electricity Regulatory Commission (NERC)continues to regulate areas within its jurisdiction; and state regulators are emerging to supervise their respective markets.

He further stated that transmission remains a national asset; distribution companies continue to serve millions of customers; generation companies continue to supply energy into the grid; private investors provide capital; development partners provide technical support; while consumers remain at the heart of every decision.

Nothing that none of these institutions exists in isolation, he said: “Our success is interconnected. This is why collaboration must become the defining principle of our decentralised electricity market. We must ensure collaboration rather than competition between institutions. We must build alignment instead of regulatory conflict. We must practice mutual respect instead of jurisdictional rivalry.”

He said the Electricity Act did not establish parallel electricity industries, but complementary electricity markets, operating within one national framework.

“Our objective must therefore be regulatory coherence. Investors should not encounter conflicting rules. Developers should not navigate contradictory approval processes. Consumers should not become casualties of institutional uncertainty. Market participants should enjoy clarity, predictability and confidence wherever they choose to invest,” he stated.

Oil & Energy

Fuel Imports Surged By 207% In June — NMDPRA report

Published

5 days ago

July 20, 2026

The Tide

Nigeria’s petrol importation surged by 207 per cent in June 2026, even as domestic Premium Motor Spirit supply fell by 22 per cent, according to the latest data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The development marked a sharp reversal from the pattern recorded at the beginning of the year when domestic refining was supplying the bulk of the country’s petrol requirements.

The NMDPRA’s June 2026 Fact Sheet, obtained by our correspondent on Saturday, showed that average daily PMS imports rose from 5.9 million litres in May to 18.1 million litres in June.

The 12.2 million-litre daily increase represented a 206.8 per cent month-on-month rise.

In contrast, domestic PMS receipts fell from 41.5 million litres per day in May to 32.5 million litres per day in June, representing a decline of 9 million litres or 21.7 per cent.

Despite the sharp drop in domestic supply, total PMS receipts rose from 47.4 million litres per day in May to 50.6 million litres per day in June. This represented an increase of 3.2 million litres per day or 6.8 per cent.

The report read, “Total PMS receipts rose by seven per cent from 47.4 million litres per day in May to 50.6 million litres in June, driven by a 207 per cent surge in imports to 18.1 million litres, even as domestic supply fell by 22 per cent to 32.5 million litres per day.

“Domestic daily receipts include DPRP gantry and all coastal evacuation receipts. Consumption data is based on volumes trucked out from all facilities into the domestic market.”

The figures suggest that the increase in imports more than compensated for the decline in domestic supply during the month.

The development is significant because Nigeria entered 2026 with a much stronger domestic supply position. In January, domestic PMS supply was reported at 40.1 million litres per day, accounting for about 61.8 per cent of the country’s petrol supply, while imports averaged 24.8 million litres per day.

However, imports fell sharply to 3.0 million litres per day in February before rising to 5.9 million litres per day in March. The country’s dependence on imports then remained relatively low through the following months before the sharp increase recorded in June.

Compared with January, June’s domestic PMS receipts of 32.5 million litres per day were 7.6 million litres, or 19 per cent, lower than the 40.1 million litres recorded at the beginning of the year.

Conversely, June’s import volume of 18.1 million litres per day was 6.7 million litres, or 27 per cent, below January’s 24.8 million litres per day.

However, the composition of supply changed considerably. While domestic supply accounted for the larger share of the market in January, the June figures showed a much greater reliance on imports to supplement local production.

The June data also showed that the country’s crude oil receipts by domestic refineries improved during the month.

Crude oil receipt by domestic refineries rose from 0.578 million barrels per day in 0.632 million barrelsMay to per day in June, an increase of 0.054 million barrels per day, or 9.3 per cent.

The NMDPRA rounded the increase to 10 per cent in its fact sheet.

The rise in crude receipts occurred at a time when domestic PMS supply decreased, indicating that higher crude deliveries alone did not immediately translate into higher petrol receipts in the domestic market.

The figures could also reflect changes in refinery operations, product yields, maintenance activities, evacuation arrangements and the balance between domestic production and imported products.

The June fact sheet further showed that average daily PMS consumption increased marginally from 46.3 million litres in May to 47.4 million litres in June.

The 1.1 million-litre increase represented a 2.4 per cent rise.

The increase in consumption, however, was far smaller than the 207 per cent jump in petrol imports.

As a result, the country’s petrol stock position improved during the month. PMS stock sufficiency rose from 16.2 days in May to 19.7 days in June.

This represented an increase of 3.5 days, or 21.6 per cent.

The improvement means that the country entered July with almost 20 days of petrol stock sufficiency, despite the increased reliance on imports.

The increase in petrol stocks is significant against the background of the supply disruptions and price volatility that have characterised the downstream petroleum market since the removal of petrol subsidy.

At the beginning of 2026, the NMDPRA reported that PMS stock sufficiency had risen to 33 days in January, compared with 29.2 days in December 2025. However, the stock position subsequently declined before recovering to 19.7 days in June.

The June data also showed a dramatic increase in imported Liquefied Petroleum Gas, popularly known as cooking gas.

Total LPG receipts rose from 4.1 kilotonnes per day in May to 5.1KT per day in June, representing a 24.4 per cent increase.

Domestic LPG receipts, however, fell from 4.0KT per day to 3.6KT per day, a decline of 0.4KT per day or 10 per cent.

Imports rose from 0.1KT per day in May to 1.5KT per day in June.

That represented an increase of 1.4KT per day, or 1,400 per cent.

The sharp increase in LPG imports helped push total receipts higher, even as domestic supply declined.

The figures indicate that LPG supply exceeded consumption during the month, potentially supporting inventory replenishment.

The supply of Automotive Gas Oil, commonly known as diesel, declined by 14 per cent in June.

AGO receipts fell from 18.8 million litres per day in May to 16.2 million litres per day in June, a decline of 2.6 million litres or 13.8 per cent.

The decline was entirely recorded in domestic receipts as the country recorded no AGO imports in either May or June.

The NMDPRA data showed that diesel consumption remained unchanged at 16 million litres per day in both months.

Consequently, June’s total AGO receipts of 16.2 million litres per day were only marginally above consumption.

Despite the lower supply, AGO stock sufficiency improved from 31 days in May to 37.1 days in June.

That represented an increase of 6.1 days or 19.7 per cent.

The rise in stock sufficiency, despite lower daily receipts, suggests that existing inventories continued to provide a substantial buffer for the diesel market.

The supply of Aviation Turbine Kerosene also fell during the month.

ATK receipts declined from 3.6 million litres per day in May to 2.5 million litres per day in June.

The 1.1 million-litre decline represented a fall of 30.6 per cent.

ATK consumption also fell from 3.1 million litres per day to 2.9 million litres per day, representing a 6.5 per cent decline.

The drop in consumption was, however, significantly smaller than the decline in receipts.

Domestic gas supply rose marginally during the period under review.

The NMDPRA reported that domestic gas supply increased from 4.984 billion standard cubic feet per day in May to 5.116Bscf/d in June.

The increase of 0.132Bscf/d represented a 2.65 per cent rise.

The authority said its domestic gas supply figure includes volumes supplied to the Nigeria LNG Limited.

The modest improvement came as the Federal Government and industry stakeholders continued to focus on increasing gas availability for power generation, industrial production and other domestic uses.

The January-to-June 2026 trend points to a petroleum market that has remained heavily influenced by the changing balance between domestic refining and imports.

Nigeria began the year with domestic PMS supply accounting for the majority of total supply. January’s 40.1 million litres per day from domestic sources compared with 24.8 million litres per day from imports.

By June, however, domestic supply had fallen to 32.5 million litres per day, while imports stood at 18.1 million litres per day.

Although the absolute volume of imports in June remained lower than January’s figure, the sharp increase from the May level showed how quickly the market could turn to imported products when domestic supply weakened.

The trend also highlights the continuing importance of domestic refining capacity to Nigeria’s fuel security.

In May, the Dangote Petroleum Refinery supplied an average of 41.5 million litres of petrol daily, according to reports based on the NMDPRA’s monthly data. The figure was significantly higher than the 40.1 million litres per day recorded in January. However, June’s domestic PMS receipt fell to 32.5 million litres per day.

The development comes amid the gradual transformation of Nigeria’s downstream petroleum sector, with the Dangote refinery increasingly supplying the domestic market while imports continue to act as a balancing source.

The figures also demonstrate that increased refinery crude supply does not automatically guarantee a corresponding increase in domestic petrol receipts. In June, crude receipts rose by about 9.3 per cent, while domestic PMS receipts fell by 21.7 per cent.

For consumers, the most immediate implication is that the country’s petrol supply system remains dependent on a combination of local refining and imports.

The June data therefore presents a mixed picture: domestic refining received more crude, total petrol supply increased and stock levels improved, but local PMS receipts fell sharply while imports surged.

In the wider downstream sector, diesel supply remained entirely domestic, LPG imports increased dramatically to supplement weaker local receipts, aviation fuel supply declined and gas availability recorded modest growth.

The data underscores the continuing transition of Nigeria’s petroleum market from an import-dependent system to a mixed supply structure in which domestic refineries are expected to provide the bulk of demand while imports fill supply gaps.