Category: Energy

The gap between the highest and lowest forecast scenarios for oil demand in 2050 has widened to a size greater than today’s entire oil market, according to the newly released International Energy Forum (IEF), Resources for the Future (RFF) Outlooks Comparison Report.

The report, published by the IEF and Resources for the Future (RFF), compares several energy market outlooks prepared by the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC) using various modelling techniques. It places them in the context of outlooks produced by other institutions such as the International Renewable Energy Agency (IRENA), and the Gas Exporting Countries Forum (GECF).

“With each year, outlooks diverge more sharply from current market realities, under pressure to project alignment with both climate and energy access targets against a backdrop of increasing prices and volatility in global energy markets,” said Joseph McMonigle, Secretary General of the IEF.

Of the scenarios compared, most “Paris Aligned” outlooks envision a world in which primary energy demand in 2050 will be below 2020 levels, reflecting a major change in the historical relationship between economic growth and energy demand.

“This giant gap between high and low case energy scenarios creates enormous uncertainties for investors and companies that must make capital allocation decisions as well as policymakers that develop energy roadmaps,” McMonigle said.

Outlooks comparisons have become significantly more complex in recent years, with a broad global consensus on the need to reach “net zero” carbon emissions by mid-century and achieve universal energy access by 2030. There is uncertainty over the future role of fossil fuels that now constitute 80 percent of primary energy supply and the speed at which an alternative replacement fuel will become available and other technologies will grow.

The report highlights ever-wider variations between the highest and lowest projections for liquid demand by 2050. The demand “gap” between OPEC’s High GDP Growth Case and the IEA’s Net Zero Emissions (NZE) Scenario rises to 84.6 million barrels per day (mb/d) in 2045.

In the most extreme scenarios – the highest scenario of the US Energy Information Agency (EIA Reference) and the lowest scenario from IRENA (IRENA 1.5°C), the difference skyrockets to 105 mb/d – larger than the size of the entire global oil market today.

“The fact that this gap has grown every year demonstrates that we are moving further away from our goals with every year that passes. Quite simply, we are not on track and must intensify dialogue, including on the assumptions and constraints that govern outlook projections which shape decisions and public perceptions,” McMonigle.

Significant uncertainties remain regarding policy and technological development, which will play important roles in shaping the pace of demand growth as well as the composition of the fuel mix, the report says.

McMonigle said technology advancements would likely hold the key to achieving climate goals and keeping the world well supplied with reliable, clean and affordable energy. Yet many scenarios understate the role of certain technologies. The role of Carbon Capture Utilization and Storage fails to reach its full potential in many scenarios, contrary to assessments by the Intergovernmental Panel on Climate Change and the IEF.

“Innovation holds the key to getting the world on track to meet our shared goals. Technology breakthroughs and valid assumptions can close the gap in the outlooks and strengthen the stability of energy markets to the benefit of all,” Mr McMonigle said. The findings of the IEF-RFF Outlooks Comparisons Report will be presented at the 12th IEA-IEF-OPEC Symposium hosted by the IEF at its headquarters in Riyadh on Wednesday 16 February, which is livestreamed to the public.

McMonigle praised the IEF’s partner organizations for their work in improving the comparability of data sets and urged IEF Ministers to ensure agencies accelerate work on aligning conventions and techniques that outlooks are based on and to make all data public.

“Peer review will bolster the global energy dialogue and improve policy and investment decisions to address challenges regarding energy security, market stability and just and orderly transitions as called for by the G20 Leaders in Rome in October 2021,” he said.

To improve electricity transmission in the country, the Transmission Company of Nigeria (TCN) has taken delivery of 15 new electricity transformers. The firm has also taken steps to replace old infrastructure, MUYIWA LUCAS writes.

After fluctuations in electricity supply, hope of improved electricity supply has received a boost as the Transmission Company of Nigeria (TCN) took delivery of 15 new power transformers.The transformers would add 637MW and 850MW to the transmission network.

The power transformers, which comprises of ten 60 MegaVolt Ampree (MVA) 132/33KV and five 150 MVA 330/132KV capacity transformers, are expected to increase Nigeria’s electricity transmission capacity by 1,487 megawatts.

TCN’s General Manager, Public Affairs, Mrs. Ndidi Mbah,  in the statement, said the transformers, which were retrieved from the Apapa ports, were delivered to TCN Central Store in Ojo, Lagos State, for onward delivery to various TCN sites across the country.

TCN Acting Managing Director, Mr. Sule Abdulaziz, said the contract for the supply of the transformers, under the Nigerian Electricity Transmission Project (NETAP), was funded by the World Bank, adding that TCN would decide on the project sites the transformers would be installed.

Abdulaziz said once installed and connected to the grid, the ten 60MVA 132/33kV power transformers and the five 50MVA 330/132kV transformers would add 637 Mega Watts (MW) and 850MW to the transmission network.

“Consequently increasing the total capacity of the transmission system by 1487MW while ensuring N-1 reliability criteria in the sub-stations, which is strategic in enhancing grid stability,’’ he explained.

According to him, in August 2021, the World Bank-funded transformer supply contracts brought in 10 60MVA132/33kV transformers and 25 earthing transformers. Out of the 10 60MVA transformers, five were installed in Karu and Gombe sub-stations, while two were being installed in Kano, and one in Lagos State.

He added: “This is the first time in the history of TCN that it took delivery of large numbers of transformers within a short period. These are milestone achievements for TCN, as it strives to implement its short-term development plan under the Nigerian Electricity Grid Maintenance, Expansion, and Rehabilitation Programme (NEGMERP),” adding that the  World Bank-sponsored NETAP project is one of the TCN donor-funded projects aimed at expanding the transmission grid while also prioritising maintenance of the existing transmission infrastructures.’’

Ahead of this, the TCN moved to reduce system losses in the power sector with the commencement of the digitisation of old transmission substations in its network. The digitisation project is aimed at improving the automation system of old transmission substations and their connectivity with the proposed TCN’s Supervisory Control and Data Acquisition (SCADA) system.

SCADA is a control system architecture comprising computers, networked data communications and graphical user interfaces for high-level supervision of machines and processes. It aims to monitor and control field devices at remote sites.

Mbah explained that the scope of work for the project included the supply, installation, configuration, testing, and inauguration of Substation Automation Systems (SAS), as well as the control and relay protection systems in the substations.

“This project would further contribute to grid management and reduce system losses.The digitisation project is funded by the World Bank under NETAP (Nigerian Electricity Transmission Project), managed by the Project Management Unit (PMU) of TCN. In Port-Harcourt Region alone, five substations would be digitalised, and this includes Afam 1, Ahoada, Yenegoa, Owerri, and Uyo substations,’ Mbah said.

She stated that the team from TCN-PMU and the General Manager (Transmission), Port Harcourt Region, handed the document on the digitisation project to the contractor at the Afam 1 substation. The event, she noted, marked the beginning of the digitisation of TCNs old substations.

In August 2019, the TCN announced the decision to split the company and plan to spend $5 million to digitise its substations’ control rooms nationwide. It stated that the intention is to midwife TCN in such a way that it will cease to exist adding that there will be a separate Transmission Service Provider (TSP) and the Independent System Operation (ISO), which will be with the Market Operator.  It also pointed out that the split can only be successful when the supervisory control and data acquisition (SCADA) and the electricity management system (EMS) are in place.

The new Chairman, Eko Electricity Distribution Company (EKEDC), Mr. Oritsedere Otubu, has assured of improved power supply.

He made the promise during a visit to some stakeholders in the industry in Abuja.

Otubu, who was accompanied by the company’s Managing Director/Chief Executive Officer, Adeoye Fadeyibi; Director, Ernest Oji; and some management staff, visited the Ministry of Power, Bureau of Public Enterprises (BPE), Transmission Company of Nigeria (TCN), Nigerian Electricity Regulatory Commission (NERC), Niger Delta Power Holding Company, and the Nigerian Electricity Liability Management Company (NELMCO).

At the Federal Ministry of Power, the chairman was welcomed by the  Minister of Power, Abubakar Aliyu, who congratulated Mr. Otubu on his appointment.

The minister agreed with the chairman’s call for more collaboration by power sector actors and stated his confidence in the DisCo based on its track record of performance in the NESI, especially on financial remittance.

He explained that the Federal Government was working on some projects to expand the capacity of the national grid to serve not only Lagos but also the entire country.

BPE Director-General, Alex Okoh  expressed his satisfaction for more collaboration with stakeholders by EKEDC chairman.

He stated that he is confident in the competence of the new chair to take EKEDC to a greater level.

Okoh emphasised that Eko DisCo occupies a strategic franchise area in the power industry, thus such agenda is significant to the  economy and ensure that the intention of the privatisation process in making the sector more favourable to consumers and investors is achieved.

He said he was impressed by how the Disco handled the power supply issues in Lagos and called on the other Discos to emulate it.

TCN Managing Director/Chief Executive Officer, Sule Ahmed Abdulaziz, assured Otubu that TCN will involve the Disco in its ongoing projects to improve the electricity infrastructure as well as meet the Disco’s request of receiving more allocation from the national grid.

Otubu said: “This visit is essential to us as we want our stakeholders to see us for who we are. We want to be more involved in the various plans and projects by the government in strengthening our network. It is important for us to work in collaboration with stakeholders to identify areas where we can get things better and effectively supply power to our customers. Eko DisCo must not only show that it is the leading Disco but also prove that the privatisation process of the power sector is a success.”

The chairman also cited the recent power supply issue in Lagos due to the drop in generation, which led to frequent load shedding in many areas.

He described the network as a strategic one growing rapidly because of increased industrial and commercial activities which have brought about the demand for more power supply. Hence, the inability to even meet up with the existing demand poses a real crisis for the DisCo.

EKO Electricity Distribution Company (EKEDC) has launched Energy clubs in selected schools within its network to encourage young girls to take opportunities in the power sector.

The clubs are expected to promote the interest of female students in Science, Technology, Engineering and Mathematics (STEM) disciplines, to achieve gender diversity and equity in the Power Sector and other related technical sectors.

The launch, which held at Government Secondary School Ikoyi, is in partnership with the United States Agency for International Development (USAID).

The schools in the first phase of the year-long programme include Akande Dahunsi Community Secondary School, Ilado Community Junior Secondary School and Wahab Folawiyo Junior High School.

EKEDC’s Head Talent Management and Development, Alero Olayiwola, explained that the club activities would run concurrently in the participating schools for a year. During the period, the company would provide the guidelines, curriculum and support the activities of the club before handing over to the participating schools for sustainability.

She said the Programme will sustain the interest and commitment of pupils in STEM subjects and expose them to the knowledge, possibilities and opportunities that abound in the power and other technical sectors.

Read Also: IE targets 24-hour supply

EKEDC’s Chief Human Resource Officer, Aik Alenkhe said the Energy Club, which is also part of the company’s corporate social responsibility (CSR), is geared towards actualising the company’s mission, vision and core values.

 

“It is our hope that this commitment to the future of the students particularly the girls, will help to bring about a gender inclusive sector without limitation or barrier to women. It is also our hope to correct the age-long stereotype that has been associated with the power sector as a male dominated sector. For us as a company, we believe that there should be no encumbrance to the opportunities that are open to females in the power sector,”he said.

Vice Principal Akande Dahunsi Community Junior Secondary School Alexander Nzekwe noted that the initiative would encourage students to be STEM focused and open them to the opportunities that are available in the sector.

Some of the EKEDC female engineers, who spoke at the event, shared their experiences with the students and encouraged them to seize the opportunities in STEM.

 

The Chairman, Ikeja Electric (IE), Mr. Kola Adesina, has assured of the company’s commitment to achieving 24-hour electricity supply.

Adesina spoke at the unveiling of IE’s Shomolu Business Unit office, Lagos.

Speaking on the sidelines at the event, Adesina explained that the firm is supplying 22 hours electricity in some areas, and will invariably scale up to 24 hours. “If other countries can do it then we can do it. It’s a journey and we will get there. At present, we are doing 22 hours in some locations. So, invariably, we have moved from when it used to be less than 10 hours to 22 hours and  we will definitely get to 24 hours,” he said.

He said IE is committed to selling more energy to its customers, as well as remedying faults faster. He however charged the Transmission Company of Nigeria (TCN) and gas suppliers to ensure that gas is readily made available to the operators in the sector. “We cannot industrialise this country without electricity,” he added.

Adesina said in addition to providing the required infrastructure that will strengthen his firm’s network and bolster services, the unveiling of the new Shomolu Business Unit office signifies that IE prioritises both its members of staff members and customers. “This building provides conducive environment for our staff, enabling them to work better, think intelligently and strategically, while ensuring quality service delivery,” he noted.

Also, IE’s Chief Executive Officer, Folake Soetan, said the company is excited to improve service delivery to its customers. According to her, the inauguration of the facility is designed to optimise operations in the area of location in line with the firm’s our mantra-customer first, technology now. For her, through the new office, IE will continue to deliver top-notch services to her teeming customers in the network.

“Our effort to continuously improve customer experience and deliver optimal value is the motivating force behind all we do at IE. And that is what has helped to position us as industry leader,” she said.

On the company’s plan for the year, Soetan noted that IE is resolved to further deliver efficient services through online and offline touchpoints, by attending to queries promptly and using innovative solutions that offer convenience and unique experience.

She said the company would continue to redefine its operations with innovative solutions while exploring better ways to work. “The satisfaction of customers remains the priority, and this restates our unwavering commitment to service excellence through continuing investment in our people and technology,” she added.

She listed this year’s target for the firm to include growth in energy which would scale up supply across the network, while several projects have been outlined for the year across the six business Units – Shomolu, Oshodi, Abule-Egba, Ikorodu, Ikeja and Akowonjo.

The Chairman of Odi-Olowo CDC, Otunba Adebayo Adekunle, commended firm for the feat. He said: “This is an improvement to what we used to have in Shomolu. It is evident that the company aims to deliver better service to people in Shomolu and its environs. That is why Ikeja Electric has considered the customers, by creating an enabling environment for better service.”

After much appeal and lobbying amid the soaring global price of crude oil, the Organisation of Petroleum Exporting Countries (OPEC) finally gave the nod for the country to increase her oil production quota. But, going by the events of the last six months, will Nigeria be able to grab and fully utilise the opportunity, MUYIWA LUCAS asks.

It was perhaps the shortest meeting so far in its history as it lasted for only 16 minutes. The ministers of the Organisation of Petroleum Exporting Countries (OPEC+) alliance, who met via video conference, approved a 400, 000 barrels per day (bpd) production hike for its members for March.

This is against the expectations and predictions of analysts and industry stakeholders who had hoped that given the bullish surge of oil price in the recent past which culminated into hitting the $90pb mark, production output quota would be increased significantly. For instance, Goldman Sachs had expressed the view that OPEC+ would announce a larger production increase for March than the usual 400,000 bpd, considering the oil price rally to $90 and the potential for renewed discontent from major oil importers at these high price levels.

Strategic

Stakeholders and analysts in the oil sector are convinced that OPEC+  decision to retain the same volume of production output, albeit, with modest increase, like it has done in the last seven months, is not without strong consideration for the market, price and the ability of its members to meet any huge output increase.

An economist and oil market analyst, Mayowa Sodipo, contended that over the period, the body has increased output quota, members have found it difficult meeting the target set for them. According to him, many oil producing nations within the OPEC+ group are struggling to pump to their quotas, thereby causing dislocations in the production chain.

Besides, with the inability to meet these allocated quotas, an increasingly huge gap between production increase on paper and actual growth in output now exist, which has made the market tighter than stakeholders had anticipated a few months ago.

Challenge

For Nigeria, the challenge before her is meeting the 1.718m bpd quota allotted to her for March. Going by antecedents, at 1.54 mbpd allocated quota has remained a problem for the country. Last August, the country managed a paltry 1.23mbpd, which was a major drop from the 1.32mbpd it produced a month earlier, while it produced 1.246mbpd in September and 1.227mb/d in October. This was at a time when the country’s had 1.6mbpd as its production output target.

This is why stakeholders are worried that for a country that has failed to meet its production quota in over five months the new allocation may also be squandered opportunity to make the critical revenue needed to finance this year’s budget and other critical infrastructural needs in the country.

Several factors are said to be mitigating against the ability to meet the production target. One such is the huge cost of restarting fields and pipeline vandalism. Sodipo noted that the level of vandalism is very high such that oil firms like Agip, and Shell have suffered serious damages to their facilities, thereby limiting their ability to contribute to production as a result of the shutdowns that usually followed such attacks.

“Unfortunately, when you experience a shutdown in your operation, restarting them is not straight forward, as restarting afacility costs money,” he explained.

Last year, for instance, a combined shortage of 1.62 million barrels was recorded at Qua Iboe terminal, with 200,000 barrels due to production shut-in arising from flare management and low well head pressure. Another 530,000 barrels were lost to shut-ins following tank top concerns, 650,000 barrels as a result of production cut-back as directed by the then Department of Petroleum Resources (DPR) as well as a loss of 240,000 barrels due to a gas leak on one of the assets.

This was followed by losses from the Forcados facility, which shed 200,000 barrels, 84,000 barrels, 30, 000 barrels and 80,000 barrels respectively on different days, with reasons ranging from leak repairs, tank top issues, a fire incident and declaration of a force majeure.

Still, Forcados continued its shut-ins, shedding an additional 405,000 barrels of crude oil at the Uzere/Afisere/Kokori axis following a shutdown as a result of protests by community workers as well as a loss of 80, 000 barrels due to a fire incident.

In the same vein, Anyala Madu shed 105,000 barrels, Bonny suffered total shut-ins of 335,000 barrels, Ugo Ocha lost 30,000, Okono’s shutdown led to loss of 96,000 barrels, while Sea Eagle lost 750,000 barrels.

Yet, stakeholders like Kayode Oyedele, a public analyst, warned that if the trend of declaration of force majure by some of the International Oil Companies (IoCs) persists this year as experienced previosly, then the 1.718mbpd allocation by OPEC+ to the country may be unattainable.

The issue of divestment by the IOCs remains a sore point against the march to meeting production capacity, with some of the multinational oil companies discreetly withdrawing their investment in the industry.

Which way

The question on stakeholders’ lips is: With all these issues, including that of  oil bunkering bedeviling production, how do Nigeria meet its OPEC+ quota?

The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Navy  have agreed to collaborate closely to enforce the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in maritime operations by curbing the use of non–compliant and non–categorised vessels and intercepting illegal vessels and non–compliant crew members on oil and gas locations.

The two organisations would set up a high-level committee that would work out detailed modalities for the collaboration and enable both organisations to accomplish their respective mandates.

These decisions were reached during the visit of the Executive Secretary of NCDMB, Simbi Kesiye Wabote, to the Chief of Naval Staff, Vice Admiral Awwal Zubairu Gambo in Abuja. According to the Executive Secretary, the Board receives alerts regularly via its whistle-blowing portal and would like to investigate such information and recommend genuine cases to the Navy. Other possible areas of collaboration include support to the board in assessment visits to vessels and provision of information to the board on vessels and tankers plying the Nigerian waters and oil and gas locations.

Wabote indicated that the Navy is well situated to drive the security aspect of the industry’s operations, particularly in securing the nation’s shores against piracy and illegal oil bunkering.  He said the Navy’s role was critical because the bulk of Nigeria’s oil and gas reserves lie along the coastal areas of the country including major infrastructure and plants for hydrocarbon processing and exports.

He also praised the Navy for its efforts in promoting Nigerian Content, notably by engaging the services of indigenous engineers and service companies in the fabrication and maintenance of Navy boats, thereby boosting local content in the industry. He highlighted the need for closer ties particularly because of the Board’s long-term vision to increase Nigerian Content levels in the oil and gas sector from the current level of about 40 percent to 70 percent by the year 2027 as part of the Nigerian Content 10-Year Strategic Roadmap.

Read Also: Content Board inaugurates sectorial groups

The Executive Secretary identified the Board’s Marine vessels development and categorisation strategy as one of the core initiatives that would support the actualisation of the 10-Year roadmap. The goals of the Marine vessel initiative are to promote the construction and maintain vessels in Nigerian yards, stimulate ownership of marine vessels by Nigerian entities, grow flagging & registration of vessels in Nigeria, deepen Nigerian manning of marine vessels, and develop world-class ship repairs and shipbuilding yard.

He reported that the board had made progress in the various aspects of these objectives such as support for the acquisition of marine vessels by Nigerians via the Nigerian Content Intervention Fund managed by the Bank of Industry (BoI), provision of sea-time training for marine cadets, patronage of in-country dry-docks, and the completion of the feasibility study and site selection for the proposed development of shipyard.

Listing some of the achievements of the board in the past five years, Wabote stated that it had begun the first phase of developing the Brass Island Terminal in Bayelsa State. The facility will carry out repair and maintenance of large ships and vessels such as LNG LNG carriers, VLCCs and maritime equipment such as jack-up rig vessels.

In his remarks, Vice Admiral Zubairu lauded the board for the numerous achievements it had recorded in implementing the NOGICD Act and pledged the support of the Navy in deepening stakeholders’ compliance with the NOGICD Act. He also sought the assistance of the board in upgrading the Naval shipyard in Lagos, particularly the slipway. While highlighting the Navy’s milestones in research and development, the Naval chief sought the board’s collaboration in improving the Navy’s R&D capabilities as well as creating a market for their products in the oil and gas industry.

The Nigeria Liquefied Petroleum Gas Association (NLPGA) has praised the Nigeria LNG Limited (NLNG) over its decision to supply 100 percent of the company’s LPG production to the local market.

NLPGA President Nuhu Yakubu, who stated this in a statement, maintained that this is a major milestone coming just three months after the company supplied its first Propane cargo into the domestic market and has developed a scheme to sustainably supply Propane for usage in cooking gas blending as well as in agro-allied, autogas, power and petrochemical sectors of the Nigerian economy to further deepen gas utilisation in the country.

“The NLPGA applauds this announcement as it marks a strong commitment of NLNG to the continued growth of the domestic LPG market, which has over the years had far-reaching positive multiplier effects on the economy. Evidently, this approach will further increase the supply and utilisation of LPG in the country,” Yakubu said.

He said the association will continue to work with NLNG as it helps to build a strong economy, through its various domestic gas supply initiatives, in support for Nigeria’s quest for accelerated gas based industrialisation with the gas resources that it is abundantly endowed with. He regretted that in recent months past, Nigerians have had to pay significantly more to buy cooking gas owing to supply disruptions. However, he expressed confidence that this supply intervention move by NLNG is expected to free up more volumes with some cushioning effect on the high price of cooking gas, subject however to its realistic production output as determined by other factors.

Read Also: $10b Train 7 gas project: Senate grills NCDMB boss over company’s local content law violation

“Clearly, the NLNG’s LPG supply intervention programme represents CSR at its best, because it directly addresses ‘stomach infrastructure’ imperatives of the average Nigerian. Affirmatively, no other company has done more to impact on millions of Nigerian households and families than the NLNG, through its various interventions, when it has been most needed,” Yakubu said.

This is not the first time the NLNG will be intervening in stabilising domestic consumption of gas. In 2007, NLNG commenced with 50,000mt/annum LPG allocation for domestic market supply and in 2007, NLNG deployed the mother and daughter vessels ship to ship arrangement at cost to the company, to guarantee volumes delivery to domestic market. Yet, in 2008/2009, NLNG sourced new medium gas carriers and commencing the use of MGCs for more efficient LPG delivery to domestic market and in 2008, NLNG increased LPG allocation to the domestic market from 50,000mt to 150,000mt/annum. Still, in 2013, NLNG increased LPG allocation to domestic market from 150,000mt to 250,000mt/annum and in 2016/2017, the firm further increased LPG allocation to domestic market from 250,000mt to 350,000mt/annum.

Furthermore, in 2019/2020, NLNG increased LPG allocation to domestic market from 350,000mt to 450,000mt/annum and in 2022, NLNG increased LPG allocation to domestic market, from 450,000mt/annum to 100 percent production.

“NLNG financed security and safety repair maintenance works at NOJ and PWA LPG jetties in Apapa, to enable increased supply frequency through multiple berthing facilities and incentivised development of LPG coastal depot in Port Harcourt, South-South Nigeria, to reduce the delivery cost of LPG to the region where it is largely produced.

“NLNG has maintained a favourable foreign exchange policy, which allows its LPG offtakers pay for its USD priced LPG cargos in Naira, at CBN official exchange rates, at a time when such generosity is no longer fashionable and also aggregate capacity of coastal storage developed since NLNG’s intervention has increased geometrically from 7000MT in 2007 to almost 100,000MT in 2021, with the attendant thousands of jobs created due to supply stability of LPG across the entire LPG value chain,” Yakubu said.

The Managing Director, Ibom Power, Meyen Etukudo, an engineer, has revealed that the power firm is consolidating on its existing investment by targeting construction of about 500MW power plant in addition to its current 190MW. This is even as he made it known that the 685 megawatts (MW) licence acquired by the company has been renewed till 2028.

In a chat with The Nation in Uyo, Akwa Ibom State, Etukudo lamented challenges confronting the power plant which he noted to include the inability of its host Distribution Company (DisCo), Port Harcourt Electricity Distribution Company (PHEDC), to take the quantum of power it generates. For instance, he explained that if Ibom Power generated 100MW of electricity and the DisCo is only able to take 60MW, then the remaining 40MW is sent to the grid at the National Control Centre in Osogbo, Osun State.

According to him, the inability of the host DisCo and the Transmission Company of Nigeria (TCN) to invest in infrastructure upgrade was a major setback to the state, saying the Akwa Ibom State government has however taken up the responsibility of TCN by building 132/33KVA and 260MVA at Ikam, which he said Vice President Yemi Osinbajo, inaugurated in 2020. This, he further noted, is a giant leap that has not been recorded anywhere in the country.

Read Also: Yenagoa faces three-month power outage

He said the state Governor, Emmanuel Udom, took the decision not to wait for the Federal Government through TCN to invest in the project because it would go a long way in solving the power supply challenges confronting industries in the state.

Etukudo explained that the gesture by the state government was also to ensure that the schools and hospitals also enjoy uninterrupted power supply, saying it remained regrettable that the state government was doing all this alone without help from anywhere.

He said if the governor had all the powers, he would have done far more to transform the electricity sector in the country, saying the 40 per cent stake of the Federal Government in the Port Harcourt Electricity Distribution Company (PHEDC) has prevented him from making the desired investment in that regard.

Etukudo said Akwa Ibom is blessed not to have had gas challenges, saying the gas pipeline laid to Ibom Power is enough to take about 400 million standard cubic feet of gas (scuf) which is enough to take care of the phase two of the 500MW power plant.

On debt, he said the power plant since 2016 when he came on board has not been able to receive 30 per cent of its invoice to Nigerian Bulk Electricity Trader (NBET). Currently, he said NBET indebtedness to Ibom Power runs into billions of naira, adding that if it invoiced N1 billion, it only gets about N300 million in payment.

Eko Electricity Distribution Plc (EKEDP) has appointed  Mr. Oritsedere Otubu, a pioneer board member, as its new Chairman. He replaces Mr. Charles Momoh who was the pioneer Chair and is stepping down after eight years in line with international best practices. It is expected that Mr. Otubu will consolidate on the gains achieved under Mr. Momoh.

This announcement was made via an official statement by the EKEDP General Manager, Corporate Communications, Mr. Godwin Idemudia. According to the statement, the EKEDP Board and Management are fully confident that the new chairman will astutely lead the company into a new phase of developmental journey to attain industry milestones and optimise its position as the leading and customer- centric power utility company and the preferred choice of all stakeholders.

Otubu is an accomplished entrepreneur with a diversified portfolio of investments that has a track record of successfully developing and building businesses for over 30 years. He plays a strong leadership role in the direction and governance of many companies where he holds significant interests. He is the Chairman of Elektron Petroleum Energy and Mining Limited, owners of Alausa Power Limited; Chairman of Venture Garden Group; former Director of Access Bank Plc; a past member of the Economic Advisory Team of Delta State, and has also served on the Board of Trustees of Western Delta University. Mr. Otubu is an expert in Finance and Economics, and has attained many academic degrees both within and outside the country. He holds a master’s degree in Accounting from Houston Baptist University Texas in the United States. He is an avid sportsman and a sports enthusiast.

According to the company’s Board and Management, Mr. Otubu will continue the drive in improving the company’s service delivery capabilities and enhance its customer-centric approach. In his quote, Mr. Otubu disclosed, “This is quite an important point for the power sector in its journey to maturity as the needs of our customers, regulators, and other stakeholders are changing rapidly. We are engaging continuously to strategically and innovatively chart the course of this company’s growth and contribute to both the power sector and the nation’s development in ways that will enable sustained and beneficial growth for all, in the years ahead”.

The statement ended by encouraging customers, partners and other stakeholders to give their full support and cooperation to the company’s new Chairman and Board of Directors.