Home Oil and Gas NERC approves special pricing for contracting of gas for NDPHC -Minister

NERC approves special pricing for contracting of gas for NDPHC -Minister

by Business News Report

The Nigerian Electricity Requlatory Commission (NERC) has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company Ltd. The Minister of Power, Mr Abubakar Aliyu, in a statement in Abuja, said that the approval was given for power plants owned by Niger Delta Power Holding Company (NDPHC) in order to optimise the capacity utilisation of the plants. Aliyu said that with the approval an on-grid improvement of about 800 Mega Watts (MW) generation capacity was expected from the NDPHC plants. The minister said that the approval followed the emergency meeting convened by him on March 14, towards the restoration of normal supply of electricity supply nationwide. ”And the development of a framework for sustainable improvement of supply,“ he said. Aliyu said that at the meeting, the Nigerian Bulk Electricity Trading (NBET) Plc was also directed to enter into fast-track negotiation with NAOC on an interim energy sales agreement.

The minister said that this was with a view to bringing the new Okpai Il Power Plant in Delta State on the grid thereby contributing additional 400MW of generation capacity. “The “pigging” of the gas pipeline supplying gas to the Odukpani power plant in Calabar is scheduled for completion on March thus ramping up
generation by about 400MW. In the medium-term, we have agreed with the Nigeria Gas and Power Investment Company (NGPIC ) a subsidiary of NNPC on the framework for the overhaul of the Okoloma gas processing plant in River State. Thereby restoring the full capacity of the 650MW Afam VI in Port-Harcourt combined cycle power plant,“ he said. Aliyu said that the ministry was pleased to apprise consumers with an update on the progress so far made to address the recent challenges in the Nigerian Electricity Supply Industry.

“The  public may please recall that the national grid lost about 1,100MW generation capacity as a consequence of simultaneous disruptions in gas supply to the Okpai, Calabar and the Afam VI power plants. The available generation capacity was exacerbated by the ongoing water management regime at the Kainji, Jebba and Shiroro power plants,” he said. The minister said that the progress so far made include, amongst many other initiatives, the restoration of gas pipeline affected by acts of vandalism. He said that the Okpai power plant had resumed power generation and currently contributing an average of 300MW. “The mitigation measures for avoiding such incidence of blackouts are being implemented through several interventions including the Presidential Power Initiative. We wish to reassure all electricity consumers that all relevant agencies involved in the restoration of normality in power supply have been charged to act in the context of the emergency state of the industry, ”he said. (NAN)

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