A Review of the Nigerian Energy Industry

Govt urged to build more IPPs

One of Nigeria's NIPP01 July 2014, Lagos – The federal government has been told that building of more independent power plants, IPPs, would solve Nigeria’s power challenges as well as provide the much needed support for economic growth, and guarantee returns on investments.

The Group Managing Director of Dangote Sugar Refinery Plc, Mr. Abdullahi Sule, who stated this at the Annual General Meeting of Nigeria Gas Association, NGA, held in Lagos, said that the private sector has a critical role to play in the success of the gas to power projects

“To realise the federal government’s goals to increase power  generation through gas, government should continue to encourage the use of gas due to its benefits, make  it to compete effectively with other refined petroleum products,” he argued.

Giving instances on how the private sector has encouraged the use of gas for industries, he said that Dangote Sugar Refinery consumes about 16 mgawwats, MW of electricity; Dangote Cement, Obajana uses 135MW; while Dangote Cement Factory, Ibese uses 111MW, all generated by the company alone.

He also said that the Sugar Refinery consumes about 9 million standard cubic feet, SCF of gas monthly.

According to him, a conducive climate has been created for power generation and distribution with the independent power plants, IPPs.

He however observed that out of the current annual gas production of about 2,000 billion cubic feet, about 40 percent is flared.

Laying emphasis on the investment opportunities that abound in the gas sector, he said that there is more room for domestic gas market expansion; IPPs, liquefied natural gas, LNG projects, the West African Gas pipeline, Tran Saharan Gas Pipeline and Gas to Liquid in Nigeria.



– Vanguard

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