THE FEDERAL GOVERNMENT FORMS AN INTERMINISTERIAL TASK FORCE TO TACKLE THE INSUFFICIENT SUPPLY OF GAS TO POWER GENERATION COMPANIES.
The federal government has established an inter-ministerial group involving the Ministry of Power and Gas to propose sustainable approaches to guarantee a consistent and adequate gas supply to electricity generation companies.
The formation of the committee resulted from a meeting between the two Ministries at the Office of the Minister of State Petroleum Resources Gas in Abuja.
During the meeting, the Minister of Petroleum Resources Gas, Ekperikpe Ekpo, highlighted the challenges contributing to the insufficient gas supply to Thermal Power Plants. He mentioned issues such as a Decade of Gas legacy debts, vandalization of gas resource infrastructures in the Niger Delta Region, and the domestic pricing of gas in dollars.
Ekpo expressed his readiness to collaborate harmoniously with individuals, organizations, and agencies to address these challenges.
Background: Since the last quarter of 2023, electricity generation companies have been operating below their capacity due to an inadequate supply of gas. Last week, the Minister of Power, Bayo Adelabu, stated that two of the nation’s biggest electricity generation companies, Omotosho and Olorunsogo power stations, were operating below 25% of their capacity due to low gas supply.
Recently, the national electricity grid shut down, causing a nationwide power outage due to a shortage of gas supply to generation companies.
More Insights: Although Nigeria has the 10th largest proven gas reserve globally, with around 206 trillion cubic feet (cf) of proven gas reserve, the country has failed to exploit the potential for power generation and other related activities.
In 2021, former President Buhari launched the Decade of Gas initiative, aiming to make Nigeria a gas-powered economy by 2030. The signal project key to achieving this goal is the AKK gas pipeline, intended to transport gas from the Niger Delta to the Northern parts of the country.
The administration of President Tinubu plans to leverage CNG for transport as a cheaper alternative to PMS following the removal of fuel subsidy in May.
In September, the Presidency announced that the Federal government had secured around $13 billions of investment in the oil and gas sector from IOCs like Exxon Mobil, etc.
Image Source: Nairametrics
News Source: Nariametrics( Aghogho Udi )
