Power: Nigeria declares 12 months gas supply emergency plan


ABUJA-In an effort to increase the supply of electric power across the country, the federal government of Nigeria has declared a 12 month gas supply emergency plan to ameliorate the hardship occasioned by incessant power outages as a result of low gas supply to thermal power stations across the country.

Nigeria’s Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke who made the declaration earlier today opined that the plan is designed to correct the misalignment cum challenges in the nation’s gas to power aspirations.

According to her a key aspect of the transformation agenda of President Goodluck Ebele Jonathan is the accelerated and sustained delivery of the much needed energy services to the Nigerian people, in particular, electricity.

“Accordingly, delivery of gas to assure sufficient, uninterrupted supply to existing, as well as new thermal generating plants has been a special focus area of mine and the Ministry of Petroleum Resources.

Up to recent times, gas supply to power plants outstripped demand to the extent that significant volumes of available gas remained unutilised on a daily basis. However a close analysis of the supply chain has revealed that over the last 10 years or so, there has been significant misalignment between power projects and gas supply sources.

Even so, with the National Integrated Power Projects (NIPP) coming on stream, there are indications of increasing pressure to meet up with the quantity of gas required as fuel to power the plants and at the correct locations.

To quickly and holistically address the misalignment, I am immediately deploying a 12-month “Domestic Gas Supply Emergency Plan.” During this period, the Ministry of Petroleum Resources, together with the NNPC and the gas producing companies will deploy extraordinary measures to accelerate opportunities for quick wins in order to ameliorate the potential gap between gas demand and supply.

In my capacity as the Honourable Minister of Petroleum Resources, and with the approval of Mr President and on the strength of the extraordinary situations the country faces, a decision has been taken to strengthen the capacity, as well as the roles of the Gas Aggregation Company of Nigeria Limited (GACN), which is a DPR-regulated company of the Ministry of Petroleum Resources with responsibility for gas sourcing and allocation, as well as Operator of the commercial framework of the Gas Master Plan.

Accordingly, in addition to its traditional gas demand management role which includes processing requests from gas buyers, managing gas supply/demand allocation, as well as facilitating Gas Supply Aggregation Agreement (GSAA) negotiations, the GACN will henceforth be accountable for the following:-

1.     Identifying gas sources/suppliers and designing incentives for accelerated domestic gas delivery

2.     Driving the implementation of the findings of the recently constituted Emergency Gas Committee with emphasis on short and medium term gas supply, and on a sustained basis

3.     Ensuring integration as well as alignment between gas demand and supply to ensure robustness of longer term gas supply to power, and,

4.     Provide implicit data to enable the DPR to be more proactive in compelling suppliers to meet Domestic gas Supply Obligations.

Finally, the President of the Federal Republic of Nigeria, Commander in Chief of the Armed Forces, Dr Goodluck Ebele Jonathan GCFR, has approved the appointment of Engr Kunle Allen as the substantive Chief Executive Officer for the Gas Aggregation Company of Nigeria (GACN). He will, within this period of emergency period report directly to the Honourable Minister of Petroleum Resources and will be accountable for the delivery of the roles stated above” the Minister announced.

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