The Nigerian National Petroleum Corporation (NNPC), has said that it will deliver about 5GW or 5,000 megawatts power by 2022 with the kick-off of the construction of a number of gas projects and some major pipelines in the country.
Since the privatization of the power sector in 2013, Nigeria has continued to struggle to achieve sustainable electricity supply with most of the nation experiencing regular power outages. The citizenry has been frustrated by the shortage of gas to power the plants as well as slowing the nation’s industrialisation and gas monetisation drive.
However, the NNPC has hinted that the new generation capacity would be boosted by additional five billion cubic feet of gas daily by 2022, while also exploring partnerships for transmission and investments to enhance evacuation and power improvement.
This piece of good news was made known at a webinar where stakeholders, who gathered for the Nigeria International Pipeline Technology & Security (NIPITECS), strategized on ways of reducing cost in the industry, insisting that the development of pipelines is critical to harnessing the nation’s oil and gas resources.
During the webinar, the NNPC’s Chief Operating Officer, Gas and Power, Yusuf Usman, said that with the expected delivery of NLNG Train 7 by 2024, the Federal Government is working on the completion and inauguration of the Escravos-Lagos Pipeline System (ELPS) I, and B3 gas pipelines to ensure connectivity between the Eastern and Western parts of the country.
Usman also noted that the construction of the Ajaokuta-Kaduna-Kano gas pipelines as well two other pipelines, there will gas availability in the Northern part of Nigeria and interconnectivity within the East.
He added that some midstream processing facilities like the ANOH Gas Plant will guarantee gas supply to the domestic market, as the country pursues the actualization of the Seven Critical Gas Development Projects (7CGDP), to deepen the penetration of its gas resources, notably, LPG, CNG and virtual LNG in-country.
According to Yusuf, the country would also secure and market the Nigerian Petroleum Development Company Ltd. (NPDC) joint venture portion and Production Sharing Contract (PSC) gas volumes, while pursuing the development of gas-based industries like the Brass Fertilizer project.
Usman further said NNPC is looking to engage the Transmission Company of Nigeria (TCN), and generation companies (GENCоs), to execute partnership agreement or framework for expanding the nation’s transmission network, stressing the need to unlock power plants, both existing and new, and that Nigeria would focus more on the regional market through the West African Gas Pipeline (WAGP), Trans-Saharan Gas Pipeline, among others.
He further noted that about half of Nigeria’s population live in rural areas that could not be economically supplied with gas via conventional gas pipeline, and raised the hopes for virtual supply using mini-LNG/CNG trucks to supply gas to remote demand centres.
According to him, the move would stimulate socio-economic development, lower government import bills on white products, and promote sustainable energy and indigenous energy resource to power the economy