NNPC Pledges Improved Gas Supply to Gencos by November


Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) has said there will be an improvement in gas supply to electricity generation companies (Gencos) in the country by the middle of November when repairs on some key gas facilities would have been completed.

According to the communiqué read out to journalists at the recent monthly meeting of power sector operators in Sokoto State, the corporation gave an assurance that when the repair works are completed, there will be an increase in the volume of gas that gets to the Gencos for power generation.

The communiqué stated that already, an average of 3,166 megawatts (MW) of electricity cannot be generated by the Gencos because of the shortage in gas supply due majorly to vandalism of gas pipelines in the Niger Delta region.
It stated that repair works on the vandalised lines and assets are ongoing and would be completed by mid- November.

“The meeting noted that a recent performance report on the power sector reported an average of 3,166MW of power currently unavailable due to gas shortages caused by pipeline vandalism.
“The meeting also noted that the remaining vandalised gas pipelines will shortly be repaired. The strategy for gas supply improvement involve restoring previous supply level by completing repairs of ELPS 24′ pipeline by mid-November 2016, and incremental supply through new supply additions from the following projects: NPDC Oredo 2, Utorogu NAG2, Odidi, Giga gas and TEPNG,” said the communiqué.

It equally noted the concerns of power sector stakeholders with its liquidity challenges, saying that several measures have been proposed to tackle it.
“The meeting recognised the liquidity problem facing the industry is multidimensional and is central to the survival, growth and sustainability of the industry.
“Solving the issues requires more intensive and extensive metering, and payment of MDA bills. The government and the industry are devising far reaching measures to solve the problem and put the industry on a robust and sustainable foundation,” it explained.

It added: “The meeting explained steps being taken to address the liquidity problem by government, through previous approvals and payments, recognising that billing and payment are continuing occurrences in the business.

“The meeting was briefed about the plans of government to verify MDA debts by requesting Discos to submit details of customers, while charging Discos to reduce their own losses by increasing metering and also by furnishing their audited accounts,” the communique added.