Nigeria increases power sector supply to 800mmscf/d
BY Joseph BAMIDELE
ABUJA: The ambitious Gas Master Plan of the Nigerian Government, launched in 2011 is set to boost power supply in the country, as gas supply to the power sector will now be increased to 800mmscfd.
Additional 300mmscfd is scheduled to be supplied by the second quarter of 2013 with much anticipation to realize the Federal Government objectives of its Gas Master Plan in connection with the power sector.
In addition, significant progress has been made in the gas based industrialization agenda of the Federal Government which include the Ogidigbe Industrial Park, Nagarjuna Fertilizer Plant, Western CPF, and Xenel/NNPC Petchem Plant.
Group Managing Director, Nigeria National Petroleum Corporation, NNPC, Engr. Andy Yakubu said in Abuja that President Jonathan strategic aspiration for natural gas is to translate gas to power, thereby delivering gas for at least threefold increase in generation capacity by 2015.
The NNPC boss disclosed this at the just concluded 8th International Gas Conference & Exhibition in his paper entitled: PIB as an enabler for Gas Development in Nigeria: Overcoming the Challenges for Successful Implementation.
By 2014, he explained that President Jonathan’s administration would have positioned the country firmly as the undisputed regional hub for gas-based industries such as fertilizer, petrochemicals and methanol.
The Federal Government policy through the Gas Master Plan, Engr. Yakubu explains that it would foster an unprecedented growth, potentially making the country’s gas sector number 5 in Africa in terms of BOE.
Explaining the rationale for the speedy passage of the Petroleum Industry Bill, PIB, the NNPC boss said policy interventions to date through the Nigerian Gas Master-plan provides a solid basis for seamless entrenchment of PIB.
He also believes that PIB provides a balanced and sustainable framework for both investors and Federal Government adding that concurrent attention is required both on passage as well as implementation.
The bill, he said will preserved the Domestic Gas supply Obligation (DSO) concept, which mandates gas suppliers to set aside certain volume of gas for the domestic market.
However, stakeholders are of the opinion that the uncertainty surrounding the PIB fiscal terms is putting a brake on up to $30 billion (N48 trillion) investments needed in the gas sector by 2016.
Industry sources however lamented that the prospects of attracting large investments under the proposed PIB fiscal terms are seriously at risk, as most gas projects are no longer economic, with the terms of the bill now at the National Assembly.