A Review of the Nigerian Energy Industry

Power situation worsens as Shell shuts Afam VI power plant

Afam-power1Yemie Adeoye 16 July Yemie Adeoye 17 July 2013, Sweetcrude, Lagos – Power situation will worsen nationwide as Shell Petroleum Development Company, SPDC, Tuesaday, shut down its 624 Mega watts Afam VI power plant.

Shell said in a statement by Mr. Tony Okonedo, Corporate Media Relations Manager, that the closure of the plant was due to shortage of gas following the closure of the Trans Niger Pipeline, TNP, as a result of crude oil theft-related leaks.

The shutdown of the TNP system, comprising the 28inch and 24inch streams, resulted in the deferment of 150,000 barrels of oil per day, and also led to tank tops and non-evacuation of condensate from Okoloma Gas Plant which supplies Afam VI Power Plant with feed gas.

SPDC said it had to shut down Okoloma Gas Plant as it could not continue to produce gas without the evacuation of condensate.

Afam VI Power Plant was available at 624MW capacity, but supplying only 105MW to the national grid due to reduced gas volume at the time of shutdown.

The latest leak on the TNP occurred on the 24inch stream at Owokiri on 11 July. A Joint Investigation Visit comprising government agencies, community and civil society representatives and SPDC personnel found that unknown persons had installed a 6inch crude theft valve on the facility.

SPDC repaired that leak, and is working to remove other crude theft points that were discovered in the process. The 28inch TNP had earlier been shut in for removal of similar oil theft connections.

The company is striving to repair the TNP as quickly as possible, and restore operations that will enable power generation to resume at Afam VI.

SPDC said it is deeply concerned about the negative impact of incessant crude theft activities on lives and environment in the Niger Delta, and also the loss of electricity to businesses and households across the country. The total daily loss from the TNP shutdown alone comes to about $15 million (N2.4 billion).

In this article

Join the Conversation