Notwithstanding the current challenges of gas supply to power generation companies, the Group Managing Director of the Nigerian National Petroleum Corporation, Dr. Maikanti Buru has said that there will be enough gas to generate about 4800 megawatts and 6000 megawatts of electricity by Q2 2017 based on the corporation’s gas supply plan.
He, however, pointed out that that may not be possible because the power sector is presently struggling to evacuate 4500MW power due to Discos’ incessant rejection of allocated load and transmission line constraints.
Latest figures from the government show that power generation rose to 4109MW earlier this week.
Baru who spoke at the 2017 edition of the annual Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum (OLEF) in Abuja on Thursday, explained that attacks on gas pipelines remain a major challenge for the sector but assured that despite the difficult environment which “we operate, we are committed to ensuring adequate gas supply to meet the Nigerian industrial growth”.
To this end therefore, he said NNPC has tendered and was expecting contractor financiers to take up the construction of its 650 kilometres northern gas line network which would run from Ajaokuta in Kogi State to Abuja, Kaduna and then Kano when completed.
He explained that the tender processes for the construction of the line, would be concluded by the end of the second quarter (Q2) of 2017, after which preferred bids who would recoup their investments from the operations of the line ought to be announced.
Baru said the corporation would put in good efforts on the construction of the Ajaokuta to Kano gas line, adding that the 123 kilometres East-West Obiafo/Obirikom to Oben (OB3) pipeline and looping of the Escravos-Lagos Gas Pipeline System from Warri to Lagos would also be completed by the end of 2017, and July 2017 respectively.
“The Ajaokuta-Abuja-Kaduna-Kano pipeline is currently on tender. This project will soon be awarded under a contractor financing scheme. The pipeline is a typical example of public private partnership and it is being tendered and going to be funded by partners who would recover their investments from the operations of the pipeline,” said Baru.
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