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[2010-02-25]
National blackout looms as gas supply crisis cripples power stations
THE economy and in particular, the real sector, may experience further unsavoury hardship from the ubiquitous power supply crisis, as poor gas supply to the local electricity generating plants has threatened to unleash a regime of total blackout on the country.

Already, four power stations have shut down, with aggregate power generation plummeting to 2,500 mega watts (mw).

Indeed, indications emerged yesterday that unless the Acting President extracts actual commitment and gas deliverable targets from the Nigerian National Petroleum Corporation (NNPC) and the International Oil Companies (IOCs) on gas supply to the domestic power plants, the nation may soon be heading towards an embarrassing national blackout.

The Guardian learnt that the nation's peak generation in December last year was 3,710mw from available 5,400mw capacity.

Minister of Power said early this year that in December 2009, Nigeria had the capacity to generate over 5000mw but gas inadequacy constrained generation to 3710mw, the highest in 2009.

As at Friday, generation has dropped to 2,450mw, while available capacity also dropped to about 4,200mw. Presently, the hydro power plants, which should have been undergoing servicing in readiness for the rain reason, are being overstretched to ensure that the nation's electricity supply does not collapse because of gas.

NNPC, in 2008, put Nigeria's natural gas reserve at about 187 trillion cubic feet of natural gas reserve, making the country the seventh largest gas reserve in the world.

Presidency sources told The Guardian that the blame for the poor power situation in the country had shifted from the Ministry of Power to NNPC and IOCs, who have the task of making gas available for power generation.

There are also calls in some quarters for a ministerial task force on gas to power as a way to permanently solve the gas to power challenges.

Some of the gas challenges faced in 2009, according to an NNPC source include poor quality, inadequate volume and vandalism of pipelines.

There were media reports recently that power supply in the country might receive a major boost as oil and gas giants, Chevron Nigeria Limited, was poised to supply 185 million standard cubic feet of gas per day to the Power Holding Company of Nigeria (PHCN).

Gas supply challenges has remained the greatest problem of the power sector despite efforts to improve on generation capacities.

Statistics obtained by The Guardian indicate that more power plants are being shut while the hydro power plants are being stretched to at least ensure that the country continue to have some power supply, no matter how minimal.

Gas supply to the plants, The Guardian learnt, has continued to diminish leading to a continuous drop in power.

The stack reality is that Utorogu gas plant, which is expected to deliver 360mscf/d, has been on average delivery of 300mscf/d. Oben and Sapele gas plants with 90mscf/d and 50mscf/d deliverable are currently out due to evacuation of wet condensate challenges. The implication of this is the loss of 600mw.

Others are Ughelli -(90mscf/d); Chevron phase 1 -(185mscf/d); and Chevron phase II-300mscf/d); Pan Ocean -(60mscf/d); and NPDC- (65mscf/d).

Checks revealed that as at February 9, 2010, gas requirement by Power Holding Company of Nigeria (PHCN), was 503.36mmscfd was required, 182.32 mmscfd was supplied; February 10, 2010: 474.49 mmscfd was required, 173.17mmscfd was supplied; February 11: 472.27mmscfd was required, 156.41 mmscfd was supplied; February 12: 543.52 mmscfd was required, 171.65mmscfd was supplied; February 13: 533.05 mmscfd was required, 172.10mmscfd was supplied; February 14: 559.94mmscfd was required, 172.83 mmscfd was supplied; February 16: 573.95mmscfd was required, 176.61mmscfd was supplied; February 17: 559.38mmscfd was required, while 104.76mmscfd was supplied to PHCN.

Statistics obtained for February 18, 2010, indicate that Geregu, Afam, Sapele, Omotosho, Olorunshogo and AES plants are currently out due to lack of gas.

A consultant to one of the independent power producers, in a chat with The Guardian, alleged that the Ministry of Petroleum Resources is not forthcoming in respect of gas to power issues, especially with clear cut directives to the IOCs through the NNPC to honour gas obligation to the domestic needs including power.

His words: "There is currently no commitment on the part of IOCs and NNPC on gas delivery in most of the meetings held by gas committee.

"Before now, the excuses tendered by NNPC and its joint venture partners were the destruction of the gas pipelines by militants. I can tell you authoritatively that that is no longer a major issue. The operators have been telling tales bordering around technical issues, among others. Nigerians are tired of hearing these stories.

The economy of this nation is dependent largely on our ability to have reliable power supply to stimulate industrial growth and create employment through the small and medium enterprises. For how long would NNPC and IOCs continue to hold Nigeria to ransom?

"The Acting President has to intervene now to save Nigeria from what is obviously looking like an international conspiracy to keep Nigeria perpetually in darkness and impede its economic growth."


Source:© Copyright Guardian Online
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