The Nation Newspaper

Tag: Gas supply

  • Seven Energy begins gas supply to fertiliser firm

    An indigenous oil and gas company, Seven Energy International Limited, has commenced supply of natural gas to Notore Chemical Industries Plc, a fertiliser and agro-allied company in Nigeria.

    The commercial delivery of gas to Notore in Onne, Rivers State, is being executed through Accugas, a wholly-owned subsidiary of Seven Energy. The company said 25 million cubic feet per day (mmcf/d) of gas is supplied as part of the feedstock to Notore’s fertiliser plant. By this supply arrangement, Seven Energy is helping Notore fertiliser plant to improve its operational efficiency and enhance the plant’s output, it said. Natural gas is a major component in the production of fertiliser.

    The Chief Executive Officer, Seven Energy, Phillip Ihenacho, said: “We are happy to announce the formal commencement of gas deliveries to Notore Chemical Industries Plc through our subsidiary, Accugas, a clear demonstration of our commitment to drive the industrialisation of Nigeria through the development of the country’s  huge natural gas resources. Through the supply of our processed gas, we are providing a new source of feedstock to meet the company’s increasing requirements, whilst directly enabling the production of fertiliser that Nigeria’s burgeoning agriculture sector desperately needs to grow.”

    The Managing Director, Accugas Stephen Tierney, said: “This milestone represents another significant step for Accugas in our effort to increase domestic supply and utilisation of gas for the good of the Nigerian people and its economy. By providing a clean, dependable, quality source of gas supply to the Notore plant, and doing so via an integrated end to end solution, we are demonstrating our clear commitment and execution performance toward enhancing domestic gas consumption for broader industrialisation.”

    Seven Energy has continued to champion the Nigerian gas and industrial revolution through the exploration and production of natural gas, and its commercialisation through processing and distribution infrastructure, where it has invested over $1 billion in the southeast region of the Niger Delta in the last five years, it added. This enables Seven Energy to reach the end-user and to support Nigeria’s evolving power sector and meet the growing energy needs of the industrial sector.In 2014 President Goodluck Jonathan commissioned the Uquo Gas Processing facility owned by Seven Energy. The facility currently supplies gas to five industrial customers.

     

  • •Govt urged to improve gas supply

    10 power plants may get gas by June, says NNPC chief

    The 10 power plants built under the National Integrated Power Plant (NIPP) initiative  will be connected to gas pipelines either by June or the end of the year, Group Executive Director, Gas and Power, Nigerian National Petroleum Corporation (NNPC) Dr. David Ige has said.

    Speaking on the sidelines of the 12th Aret Adams Memorial Lecture in Lagos, at the weekend, Ige said the connection would enable the plants to access gas for improved electricity generation and distribution.

    Aret Adams was former Group Managing Director of NNPC.

    Ige said the plants are would add 5,000 megawatts (Mw) of electricity to the national grid upon completion.

    The plants are Geregu 11 (334Mw); Calabar (630Mw); Egbema (378Mw); and Ihonvbor (504 MW). Others are Gbarain (252Mw); Sapele( 504Mw); Omoku (252Mw); Alaoji (1030Mw); Olorunsogo II (750Mw) and Omotosho ( 500Mw).

    He said: “Plans are underway to connect gas pipelines to the 10 power plants constructed by the Federal Government to ease electricity problems and further encourage economic growth. Gas is critical to the growth of the power sector and the government is working to ensure that enough gas is channelled to the power generation plants.”

    Ige also stated that the government has made arrangement to  provide gas to the privatised power generation plants formerly owned by the defunct Power Holding Company of Nigeria.

    He said there is enough gas waiting for Omoku power plant but noted that pipeline vandalism is a major problem in the industry even as the government plans to reduce or stop it.

    “A lot has been done to bring huge volumes of gas to the power plants. But each time, we try to breach the shortfall in gas supply; our efforts are frustrated by vandals who break the pipes at will. Since the beginning of this year, we have not had one week of respite. There have been consistent attacks of pipelines. When we have these attacks, the pipeline pressure drops immediately because of the off-take. If we shut down to repair the pipelines, it takes about 10 days to repair. Thereafter, you need some days to build up the pressure. By the time you are building up the pressure, people are attacking the pipelines again,” he added.

    The Acting Head, Public Communication, Bureau of Public Enterprises (BPE), Alex Okoh, said the government is working hard to provide gas to the plants.

    The spokesman, Niger Delta Power Holding Company of Nigeria, Yakubu Lawal, said the company was not delaying the sale of the plants which investors bid for in 2014. He said the firm has completed the building of the plants, with Olorunsogo being the latest one commissioned a fortnight ago in Ogun State.

    “The goal of the company is to build the 10 power plants, which we have done in line with the mandates given to us by the government. It is the responsibility of NNPC to provide the gas. So, how did we cause the delay in the sale of the plants as rumoured in some quarters? he asked. Yakubu said gas supply was not part of the mandate given to the company and would not concern itself with that. He said the court would determine the fate of three of the plants that are under litigation.

  • Poor gas supply stalls 224 substations’ activation

    Poor gas supply stalls 224 substations’ activation

    Gas supply shortage is stalling the activation of 224 distribution substation built by the Federal Government to boost electricity supply, it was learnt.

    The Director-General, National Power Training Institute of Nigeria (NAPTIN), Reuben Okeke, said gas supply from the Nigerian Gas Company, a subsidiary of the Nigerian National Petroleum Corporation (NNPC), is inadequate.

    Okeke said the 224 substations could not operate optimally due to gas shortage. He said: “Though the stations are ready to help move the country from its current 4,500 megawatts (MW) supply level to 20,000MW in the next few years. However, it has been impossible to achieve this feat, due to gas shortage. Shortage of gas has stalled the various projects initiated by the government to wheel electricity into the national grid.”

    Many of the power generating plants built under the National Integrated Power Project (NIPP), he said, have not come on stream because of gas shortage. “Aside the fact that the country is targeting 5,000MW from the NIPP,  6,000MW is expected from the privatised successor companies unbundled from the Power Holding Company of Nigeria (PHCN). However, gas is impeeding the country’s ability to generate electricity,” he said.

    Okeke explained that there is no way the country’s energy needs can be achieved without being complemented through renewable sources of power supply.

    Nigeria, he said, requires substantial electricity for sustenance, stressing that thermal and hydro power plants remain the major sources of the country’s power supply.

    “Renewable energy sources such as solar, wind, coal and biomass would generate small amount of electricity. The energy from these sources is small and could not facilitate economic growth. Renewable energy should be for the rural areas and should not be relied upon to speed up economic process,” he said.

    Okeke said the decision of developed countries such as Germany and Canada to assist Nigeria develop its renewable energy system was purely selfish. He explained that such countries have developed renewable energy sources to an enviable height and are looking for markets where they would dump their equipment.

    According to him, Nigeria is one of the markets those countries hope to get buyers for their renewable energy products.

    The NAPTIN’s boss said Israel generates 100 per cent energy from coal, while South Africa meets part of its energy needs through coal. “While the renewable energy is good and capable of galvanising activities in communities across the country, it should not be seen as complementing the hydro and solar sources of generating electricity in Nigeria,” he said.

    Meanwhile, the Ministries of Power and Petroleum Resources are collaborating to improve gas supply as part of ongoing efforts to boost power generation.  The development, however, is yet to impact positively on the national grid, as irregular power supply continues.

    The Minister of Power, Prof. Chinedu Nebo, had reiterated government’s determination to ensure stable power supply before President Goodluck Jonathan completes his term next year.

    The current synergy between both minstries on gas supply, he said, would make Nigerians  enjoy steady and sustainable power supply.

  • Power sector gets 70% of domestic gas supply

    Power sector gets 70% of domestic gas supply

    TO improve electricity supply in the country, 70 per cent of total domestic gas supply put at 1.5 billion standard cubic feet per day (scf/d) is dedicated to the power sector, it was learnt.

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, who made this known, told The Nation that to further harness the gas resource for monetisation and development, the corporation has established a directorate to accomplish that objective.

    He said: “The gas sector has witnessed commendable improvements in line with Federal Government’s initiative to further monetise the gas resources of the nation. This led to establishment of the Gas and Power Directorate of the corporation, which is anchoring the gas revolution agenda launched by Mr. President aimed at enhancing gas utilisation in the country.

    “We are focused on the development of and installation of new infrastructure for gas processing, transmission and distribution nationwide.

    “Also as a result of the interventions, gas supply to the Nigerian market has grown from 300 million cubic feet per day a few years ago, to an all time high of 1.5 billion cubic feet per day, of which about 70 per cent is dedicated to support the power sector.”

    He also said gas flaring in the oil and gas industry has significantly reduced from 28 per cent two years ago to 10 per cent today, adding that in the past few years, the corporation has embarked on the most aggressive expansion of the nation’s gas pipeline infrastructure for effective transmission and distribution of natural gas.

    He said: “We are in the process of completing construction of pipeline connections to all gas fired power plants. Also the construction of a second 450 kilometre Escravos-Lagos pipeline system is almost completed. The Escravos-Oben and Emuren-Itoki segments have been completed and put into use, leaving the Oben-Emuren segment, which will be completed before end of the year. The construction of 120 kilometre East-West pipeline system has also commenced.”

    The NNPC lamented the unwarranted vandalism of the corporation’s pipelines especially the major trunk lines through which crude oil is conveyed to the terminals for export. The development led to the intervention of the Federal Government with the setting up of a committee. The actions of the committee led to improvement in oil production.

    “It is pertinent to note that Nigeria’s production and export is dependent on four main crude export pipelines – the Trans Forcados pipeline to the west, the Ogbanbiri/Temidaba/Brass pipelines in the centre, the Trans Niger pipeline and Nembe creek trunk line to the east respectively. When these pipelines are compromised and vandalised, over 500,000 barrels of oil per day are potentially at risk.

    “Consequently, the Federal Government had to intervene with the setting up of a committee consisting members of the National Economic Committee. With the help of the committee, production increased slightly last year and is currently ramping up. We hope to see further improvement by year end,” he added.

  • Gas supply to power sector to hit 650mmscf/d

    Gas supply to power sector to hit 650mmscf/d

    •NNPC raps Japanese firm for PH refinery’s TAM

    To boost power supply,  the Nigerian National Petroleum Corporation (NNPC), is working to increase gas supply to thermal power stations by 250 million standard cubic feet per day (mmscf/d) to 650mmscf/d before end of this year.

    Its Group Managing Director, Andrew Yakubu, disclosed this while declaring open the Nigerian pavilion at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, United States.

    Yakubu said the government is making efforts to address the problem of gas supply to the power sector on sustainable basis and ensure actualization of the gas revolution agenda to maximise the full benefits of the gas resources for the country. He said remarkable progress has been made in gas production for domestic use explaining that in the past four to five years, only 300mmscf/d was available for domestic use, which has currently jumped to I.5 billion standard cubic feet per day (bscf/d).

    He also said the provisions in the Petroleum Industry Bill (PIB) when passed into law will tremendously advance benefits expected from gas for the citizens.

    He said: “The essence of the PIB was to improve government’s take, fiscal regime, and jump in gas obligation. “There has been tremendous progress in gas production for domestic use. It was 300mmscf/d four to five years ago and now it is I.5bscf/d. This in any global standard is impressive and we intend to continue to build on that.

    “NNPC is also the largest producer of gas for domestic use. We currently produce over 400mmscf/d and plans are under way to increase it by 250mmscf/d by end of this year. There is a lot going on in terms of gas investment and particularly in gas to power and the minister is driving us not only to sustain this but to surpass it.”

    The NNPC chief also explained the government’s efforts at reducing dependence on imported petroleum products by improving output from local refineries. He said the corporation is still in discussion with the original equipment manufacturer (OEM) of Port Harcourt Refinery, Japanese Japling Corporation (JJC) to come to Nigeria and carry out the turnaround maintenance (TAM) of the refinery.

    “Turnaround maintenance is not a ceremonial snapshot. It is our duty on annual basis to maintain and operate our plants. TAM is scheduled for certain interventions that will require total shut down of the plant. We have scheduled TAM for Port Harcourt refinery and a lot has happened in the refinery’s turnaround initiative. “