A Review of the Nigerian Energy Industry

Power generation to improve as NNPC completes repair of damaged gas pipeline

nnpc10 February 2014, Sweetcrude, Abuja –  Electricity generation may have received a significant boost following announcement at the weekend by the Nigerian National Petroleum Corporation, NNPC, that it has completed repair works on the sections of the sabotaged Escravos-Lagos Gas Pipeline network, ELPS.

 Acting Group General Manager, Group Public Affairs Division of the Corporation, Dr. Omar Farouk Ibrahim, stated in a press release that the repair works which has ended almost seven months of gas supply outage caused by willful hacking of the pipeline in Delta State, would enable the re-injection of almost 200 million cubic feet per day (mmcf/d) of gas into the grid, the equivalent of about 700 Megawatts of electricity.
Last week the Corporation also completed repair works on the pulverized Trans-Forcados Pipeline which accounts for 230 mmcf/d of gas the equivalent of 805 Megawatts of electricity. With the latest successful repair of the ELPS, the NNPC within the last one week is injecting a total of 430 mmcf/d of gas into the grid which translates to 1, 505 Megawatts of electricity every day.
Dr. Ibrahim also stated that an additional 60mmcf/d is expected within three weeks when ongoing repair works at the Utorogu gas plant is projected for completion. He enthused that Nigerians should expect steady improvement in power availability through the course of the year.
He noted that despite short term challenges being experienced as a result of deliberate pipeline sabotage , the gas sector reform is ongoing and on course.
“The Minister of Petroleum Resources, MrsDiezaniAlison-Madueke directed an accelerated implementation of the Nigerian Gas master-plan and this has resulted in an aggressive infrastructure development drive and major reforms of the commercial framework for gas in Nigeria. In the last 3 years alone, over 400km of new gas pipelines have been completed and we are expanding pipeline capacity and enhancing connectivity between various gas supply sources,’’ the NNPC spokesman said.
He informed that all PHCN and NIPP power plants are now connected to gas pipeline infrastructure while an additional 450km are under construction currently, of which 340km is due to for completion by the end of 2014 and the balance by 2016.
“The ongoing gas infrastructure work is the most extensive the nation has ever seen, with many new kilometers of pipeline being added every day. Gas production and supply has also grown to an all-time high of 1500mmcf/d from less than 500mmcf/d four years ago. A major part of this new supply is being directed to the power sector, whilst the non-power sector such as cement, manufacturing etc. have seen double increase in supply within the same period. Unfortunately, challenges of pipeline attack continue to undermine the impact of these great efforts,’’ he said.
Ibrahim noted that supply growth remains the priority of the NNPC and its Joint Venture partners.
“Many projects are being progressed to assure realisation of this objective. Before the end of the year, about 200mmcf/d new gas will be added to the grid as some projects are billed for completion in June and September. The trend is expected to continue through 2015 when many more projects are completed,’’ he said. 
The NNPC assured that all efforts are being put in place to guarantee sustainable growth in gas supply, with particular focus to the Power sector.
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