Oil & Energy
NNPC Has Surpassed Its Domestic Gas Obligation – NNPC Boss
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Austen Oniwon, has said that the corporation has surpassed its gas obligation to the power plants in the country.
He told newsmen on Thursday in Abuja that the current gas supply to the power plants was adequate even as the corporation was striving to ensure sufficient supply to other new ones under various stages of completion.
Oniwon said the measures were in consonance with the Federal Government’s aspiration on stable electricity supply to Nigerians.
He said the NNPC had more than enough gas that the power plants could consume, adding that the corporation was recently commended for surpassing the domestic gas needs for the power plants across the country.
Gas supply to power is presently more than the power plants can carry and this has contributed immensely in bolstering electricity stability in Nigeria.
The Presidential Task Force on Power recently commended NNPC and other oil companies for delivering sufficient gas to the power plants in line with the Federal Government’s aspiration,” Oniwon said.
He explained that the development being recorded in the area of gas would expedite the establishment of agro-allied industries and petrochemical plants across the country and create wealth for Nigerians.
He said the Nigeria Petroleum Development Company (NPDC), a subsidiary of the NNPC, had grown its asset base in three folds, preparatory to becoming a big player in the upstream sector.
“Very shortly the NPDC will re-enter the Ogoni oil field to commence oil exploration and production in line with its mandate of 250,000 barrels of crude oil per day in 2015,” the GMD said.
On the Greenfield Refinery project, Oniwon said that as soon as the project was completed, Nigeria would join the league of exporters of premium motor spirit in the energy market.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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