30 April 2013, Abuja – Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, says the power sector was owing the Nigerian National Petroleum Corporation, NNPC, about N22 billion for gas supplied.
Making the disclosure at a one-day roundtable session organised by the Nigerian Economic Summit Group, NESG, in Abuja, the minister said the volume of gas needed to power demand is projected to grow sharply as the National Independent Power Plants, NIPPs), come on stream and that this would be bridged by 2015.
Represented at the event by the NNPC’s Group Executive Director, Gas and Power, David Ige, Alison-Madueke also stated that gas supply payment performance has been a major dis-incentive to supply growth in the sector.
“One key dis-incentive to supply growth is the payment performance of the power sector broadly, whilst NIPP has had a relatively better performance in terms of paying for gas, the power sector still owes about N22 billion for gas supplied.
“For sustained growth in supply, there is need for improved payment performance,” she said.
She assured that several efforts were being undertaken to ensure gas supply growth in line with increasing demand, adding that in the short term,about 130 mmcf/d was expected in the West.
Also, almost 1000mmcf/d forecast to be added between 2014 and 2015, would bridge the gap in demand by NIPP.
She further stated that while current demand by NIPP in the Western area is about 260mmcf/d, it is estimated that by the end of 2013, gas demand by NIPP would grow by an estimated 340mmcf/day coming notably from Geregu and Ihovor.