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FG reiterates plan to boost power supply to 6,500MW in six months

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The Minister of Power, Mr Adebayo Adelabu, has reiterated the Federal Government’s plan to raise electricity generation from 3,500 Megawatts(MW) to 6,500MW within the next three to six months.

Adelabu who was on a working visit to various power projects in Lagos on Friday, said the aim was to enhance power supply across the country to meet the growing energy demands.

His visit included an inspection of the headquarters of Eko Electricity Distribution Company (EKEDC) and two 20 MVA injection substations at Randle, Surulere, along with Supervisory Control and Data Acquisition (SCADA) monitoring rooms.

Adelabu emphasised the urgency of boosting electricity generation capacity, stating, “3,500 megawatts is not acceptable, and we have plans to increase the capacity to a minimum of 6,000 to 6,500 within the next three to six months.”

He commended EKEDC for its achievements over the past decade and stressed the need for continuous improvement in the power sector to drive economic growth and development effectively.

Highlighting the critical role of the power sector in industrial and economic development, Adelabu compared Nigeria’s power generation capacity unfavourably to that of countries like Korea and China, underscoring the need for substantial improvement.

Addressing challenges in the power sector, Adelabu emphasised the importance of prioritising baseload power generation and gradually transitioning to cleaner energy sources to meet the nation’s energy needs effectively.

He acknowledged the persisting complaints about power outages and urged stakeholders to work collaboratively to address these challenges and improve service delivery.

Adelabu outlined the government’s strategy to prioritise service provision to customers in higher billing bands while gradually extending improved services to all segments through strategic infrastructure investments.

Recognising the role of Distribution Companies (DisCos) in customer service, Adelabu said it was important to ensure proactive engagement and efficient operations at this level to address consumer needs effectively.

He stressed the need for comprehensive reforms and transformation in all segments of the power sector, focusing on issues such as metering, vandalism, debt collection, and customer relations.

Adelabu highlighted the necessity of stimulating demand through customer engagement to ensure effective utilisation of generated power and underscored the importance of efficient distribution to prevent wastage.

The Minister noted the government’s commitment to enhancing the sector’s performance through substantial investments in infrastructure and efficient customer response.

In response to the minister’s visit, Chairman of EKEDC, Mr Oritsedere Otubu commended the government’s efforts to improve power supply and expressed the company’s commitment to supporting the initiative.

The CEO of EKEDC, Dr Tinuade Sanda said the company would continue to collaborate with government agencies and consumers to protect power assets and curb vandalism within its operations.

Sanda said that the company, in the last six months, had invested over four billion Naira on transformers,  cables and rehabilitation over 352 feeders to ensure stable supply during the rainy season.

She added that the debt profile of the company in the last 10 years stood at over N131 billion, inclusive of the Ministries,  Departments and Agencies (MDAs).

“We also use this medium to appeal to our customers to pay their bills for effective service delivery.

“The MDAs outstanding debts to date stood at over N36 billion,  adding that the DisCo will not hesitate to embark on mass disconnection of debtors,” she added.

She, however, said the company was ready to embark on mass disconnection of debtors, including government agencies with outstanding debts, to address the issue of unpaid bills.

Energy

530 CNG buses ready for deployment in Lagos, Oyo, Kwara, FCT, others

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The process for nationwide deployment of Compressed Natural Gas (CNG) vehicles has commenced. Not less than 530 buses are to be deployed by the end of the month in six pioneering states.

These are Oyo, Lagos, Kwara, Kogi, Kaduna, Nasarawa, and the Federal Capital Territory (FCT) Abuja.

Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI) Michael Oluwagbemi stated this yesterday.

It was during the event signaling the commencement of 15-day-long activities ahead of the rollout.

He said the distribution is on a demand-led basis.  He added that efforts would be accelerated at the conversion of diesel and petrol-fuel engines across the country.

According to Oluwagbemi, President Tinubu has directed the PCNGI to ensure the conversion of at least 10 per cent of the total number of vehicles in the country in the first year of the rollout of the initiative.

 

The programme began yesterday in the Southwest with the Presidential (virtual) commissioning of the critical gas supply projects.

 

Today, the team will inspect the Jets and Mikano Factory along with representatives of the Ministry of Labour and workers unions.

Southsouth and Southeast stakeholders engagement will be held tomorrow in Port Harcourt, the Rivers State capital.

Affiliate conversion and refuelling at the Femadec Site as well as an inspection tour of the Total Energies support station are planned.

Another six-day inspection tour of the Kojo Factory at the Enugu-Onitsha Site will begin on May 24 to receive the first set of assembled tricycles, buses, cylinders and kits ahead of the official launch.

The Luojia Assembly Plant for CNG tricycles on the Lagos-Ibadan Expressway will be inaugurated on May 30.

“These programmes are a fulfilment of President Bola Ahmed Tinubu’s promise to drive Nigeria’s energy transition in the transportation sector leveraging CNG and enabling economic growth,” Oluwagbemi stated.

He noted the President’s political will to ensure the full utilisation of natural gas which hitherto was being flared.

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Oil block bid rounds: NUPRC assures interested buyers of conducive environment

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The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, has assured prospective investors interested in participating in the country’s oil rounds of a conducive environment to conduct their business.

Komolafe made this assertion at the Miami International Roadshow for the 2024 licensing round, organised by the NUPRC in partnership with the Petroleum Technology Association of Nigeria (PETAN) and Zetse Advisory & Consulting.

Speaking, Komolafe declared that the marketing of oil blocks has garnered staunch backing from the highest echelons of the government.

Engr. Komolafe, who underscored the role of presidential support in attracting investors to the Nation’s oil sector, said the Licensing Round is part of concerted efforts by Nigerian authorities to revitalise the country’s oil and gas industry and foster increased investment.

According to him, the backing signals a concerted effort to provide a conducive environment for both domestic and foreign investors seeking opportunities in Nigeria’s energy market.

The Miami International Roadshow serves as a crucial platform for showcasing Nigeria’s vast potential in the petroleum sector and fostering partnerships with international stakeholders. By collaborating with stakeholders such as PETAN and Zetse Advisory & Consulting, Komolafe further affirms Nigeria’s commitment to fostering a transparent and investor friendly regulatory environment in its pursuit of energy sector excellence.

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Tinubu commissions OB3, ANOH, AHL gas projects

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…Reiterates commitment to utilise Gas for economic growth, prosperity

President Bola Ahmed Tinubu on Tuesday virtually commissioned three gas projects in Imo and Delta state.

The projects were executed by NNPC Limited and its partners in Ohaji-Egbema, in Imo State and Kwale, in Delta States, on Wednesday.

The three projects commissioned include the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.

Speaking, President Tinubu reiterated the commitment of his administration to utilize Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

“It is pleasing that approximately, 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25 percent incremental growth in gas supply. In practical terms, this translates into more gas to the Power Sector, Gas-Based Industries, and other critical segments of the economy,” the President added.

The President said from the onset, his administration was clear of its intention to leverage on the virtually unlimited capacity of gas to deepen domestic gas utilisation, increase national power generation capacity, revitalise industries, and create multiple job opportunities for economic growth.

He said aside the Presidential Compressed Natural Gas (CNG) Initiative which is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivising gas development through Presidential Executive Orders.

While congratulating the projects partners (NNPC Limited, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy for the successful implementation of the three projects, Tinubu particularly charged the NNPC Limited to, as the national energy company of choice, sustain its relentless efforts and record more successes in the energy sector for the benefit of all Nigerians.

He described the commissioning as a highly significant milestone for Nigeria as it demonstrates his administration’s efforts to accelerate the development of critical gas infrastructure geared at enhancing the supply of energy to boost industrial growth and create employment opportunities.

He said the projects were fully in line with the Federal Government’s Decade of Gas initiative, and his administration’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialisation.

“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realisation of gas-fueled prosperity in our country. Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business,” the President noted.

Earlier in his address, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo highlighted the efforts of his ministry to continue to champion the utilisation of gas as a transition fuel as Nigeria moves towards achieving clean energy efficiency and security by 2060.

Ekpo commended the President for his leadership and support towards the success of the three projects.

He said: “Mr. President, the decision to eliminate fuel subsidies at the start of your administration has compelled increased spending in upstream and midstream gas development, and the use of gas as an appropriate, more cost-effective, and cleaner alternative to diesel and gasoline. Furthermore, in keeping with the Paris Climate Change agreement, this measure solidifies the use of gas as our transition fuel as we move the Nation towards achieving green energy sufficiency by 2060.”

The Minister appreciated  President Tinubu, saying his “inspiring leadership has been the driving force behind our progress towards a future full of opportunity and promise.”

He described the AHL Gas Processing Plant 2 (GPP – 2) and ANOH Gas Processing Company (AGPC) Plant, which were commissioned, as important facets of the Decade of Gas initiative, and a reflection of the NNPC Ltd. and its Joint Venture partners’ efforts.

“In addition to producing over 160,000 metric tonnes of propane and 100,000 metric tonnes of butane annually, this plant promotes rapid industrialisation and reduces reliance on LPG import,” he said.

In his remarks, the GCEO NNPC, Mr. Mele Kyari described the commissioning as a demonstration of Mr. President’s commitment and support to grow the domestic utilisation of natural gas for power generation, as feedstock for gas-based industries and overall rapid industrialisation of Nigeria on the back of the enormous gas resources in the country.

Kyari assured that as part of its mandate, NNPC Ltd remains committed to maintaining energy security by executing more strategic gas projects for the benefit of Nigeria.

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