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Amid widespread blackout, DisCos reject 1,769MW of electricity

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Amid the widespread blackout and the worsening state of electricity supply in Nigeria, the latest figures on the daily load summary of power distribution companies indicate that the firms failed to distribute about 1,769.91 megawatts of electricity between February 1 and 14, 2024.

Data from the Transmission Company of Nigeria, obtained in Abuja showed that though some of the power firms received excess electricity load allocation during the period, most of them failed to utilise all the quantum of energy allocated to them by TCN.

Nigeria’s power situation grew worse since January this year, forcing the Minister of Power, Chief Adebayo Adelabu, to declare on Saturday that some power firms and TCN had been summoned to provide reasons for the worsening state of electricity supply in their regions.

Adelabu also pointed out that investigations by the power ministry showed that some power distribution companies were rejecting electricity, despite the scarce supply of the commodity

“Findings revealed that some distribution companies were deliberately not taking up power supply from TCN while some power lines were also damaged by vandals in Abuja, Benin, Port Harcourt and Ibadan regions,” Adelabu stated in a statement issued in Abuja.

The Minister’s position may have been justified as an analysis of the latest figures on the daily load summary of power distribution companies by our correspondent on Monday indicated that the DisCos failed to distribute about 1,769.91MW of power in the first two weeks of February.

Nigeria has 11 power distribution companies and they include Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola Discos.

On February 1, 2024, seven of the power distributors failed to utilise a total of 128.62MW of electricity, while four others including Benin, Ibadan, Port Harcourt and Yola took a cumulative excess load allocation of 61.91MW.

By taking excess load, it means the DisCo’s actual energy consumption for that particular day was higher than the load allocated to it by the Transmission Company of Nigeria.

However, the actual consumption figures of most Discos are usually lower than their allocated load, leading to unutilised or rejected energy by the power distributors.

On February 2 and 3, the Discos failed to utilise a total of 108.25MW and 71.54MW respectively, while they received excess load allocation 22.35MW and 65.45MW respectively.

On February 4, it was observed that only 4.45MW was not utilised by Kano Disco; while 327.47MW excess load was received by 10 other Discos. The low rejection of electricity on this day was due to low power generation on February 4, 2024.

On February 5, there was no rejection of electricity by any DisCo, while 211.04MW of excess load was allocated to the 11 power distributors due to the low power generation recorded on that day.

The next day being February 6, three of the power firms failed to distribute 197.32MW, while eight others received excess load allocation of 200.09MW

On February 7, four of the firms failed to utilise 216.1MW, while the remaining seven took an excess load of 162.02MW, as figures from TCN showed that the power firms rejected a total of 726.28MW of electricity in the first week of last month.

On February 8, eight power firms did not distribute 126.33MW, as three others took an excess load of 31.77MW; while the next day, nine power distributors failed to utilise 137.9MW, as the remaining two got an excess load of 39.27MW.

On February 10, nine of the DisCos rejected 185.47MW, as two others took an excess load of 22.23MW; while on February 11, eight of the firms did not distribute 142.86MW, and three others got an excess load of 60.66MW.

On February 12, eight DisCos did not distribute 132.27MW; three others received excess load allocation of 45.83MW, while on February 13, six Discos failed to utilise 133.8MW as five others took an excess load of 48.09MW.

Five power distributors rejected 179.6MW of electricity on February 14, while the remaining six of them took an excess load allocation of 83.18MW.

This shows that in the second week of February, from 8th to 14th, the power distributors did not distribute about 1,043.63MW of electricity. They, however, received excess load allocation of 330.97MW.

Worried by the poor electricity supply situation, the power minister had in a letter signed by the Director, Distribution Services at the Federal Ministry of Power, B.U Mustapha, ordered the CEOs of Abuja and Ibadan Discos, as well as TCN to attend a meeting called by Adelabu this week.

“They would discuss issues bothering on worsening electricity supply in their regions with a view to proffer a lasting solution,” a statement by Bolaji Tunji, Special Adviser, Strategic Communications and Media Relations to the minister, stated on Saturday.

Adelabu was quoted as saying that the management of other non-performing Discos would also be queried over non-performance as reports continue to filter in on the situation in their regions.

“These two Discos have been summoned due to the worsening power supply situation in their regions despite improved supply from TCN,” the power minister stated.

According to the statement, gas shortage notwithstanding, the ministry had been putting pressure on the power generating companies to improve performance and generation had been ramped up to over 4,000MW in recent days.

“So, we expect power supply to have improved across the country, unlike what we are experiencing in some regions, presently,” the minister stated.

Energy

Nigeria’s Adekeye emerges Chairperson, APPO Training Directors

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Nigeria’s Folashade Adekeye has emerged as the Chairperson, Forum of the Directors of Oil & Gas Training & Vocational Education Institutes of the African Petroleum Producers Organization (APPO).

Adekeye, who is the Director, NNPC Academy, took over from the former chairperson, Mr. Abdelkader Guenone, the Managing Director of the Algerian Petroleum Institute (API), during the second meeting of the Forum, in Abuja, at the weekend.

Adekeye, who heads the NNPC’s oil and gas training arm, brings into the role over 30 years of experience, and is expected to work with her colleagues from APPO Member Countries in order to foster more collaboration towards addressing the challenges of competences, skill gaps, infrastructure, and poor funding in the organization’s training institutions.

Earlier in his keynote address at the opening ceremony of the meeting, the Group Chief Executive Officer of NNPC Ltd., Mele Kyari, represented by Inuwa Danladi, Executive Vice President (Business Services), emphasized the importance of a standardized educational and training approach to meet the changing demands of the oil and gas industry.

Also in his keynote address, APPO’s Secretary General, Dr. Omar Farouk Ibrahim, charged the Member Countries to work towards further enhancing collaborative efforts to establish Oil & Gas Centres of Excellence across the African continent.

Dr. Ibrahim, also from Nigeria, said having good knowledge of the Forum’s challenges would enable APPO Member Countries to make recommendations and provide solutions in areas such as Oil & Gas project funding, technology adoption, and the formation of Africa Energy Bank.

He concluded that such collaboration by all member countries will guarantee Africa’s energy accessibility, affordability and sustainability, which overall, will strengthen her economies and bring prosperity to its citizens.

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FG may fund installation of CNG pumps as marketers lament high cost

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The Federal Government may consider assisting independent fuel marketers with funding to install Compressed Natural Gas sales pumps at filling stations across the country, newsmen has learnt.

This followed the lamentation of the Independent Petroleum Marketers Association of Nigeria that its members were unable to finance the installation of CNG sales pumps at their filling stations in line with the presidential directive promoting the CNG initiative.

The marketers said the cost of installing CNG pumps was prohibitive for its members, adding that the high-interest rate charged by banks also made borrowing money for the project an unattractive option.

President Tinubu had announced an end to the fuel subsidy era during his inauguration on May 29, 2023, a move that triggered a hike in the cost of the product.

The President, however, promised to roll out measures, including CNG-powered mass transit buses and tricycles, to cushion the impacts of the subsidy removal. After almost one year in office, that initiative is set to come to life.

According to presidential aide, Bayo Onanuga, the Federal Government planned to launch its compressed natural gas initiative in May ahead of President Bola Tinubu’s first anniversary.

“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year,” he said in a statement.

“A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles. The SKD parts manufactured by the Chinese company, LUOJIA, in partnership with its local partner to support the consortium of local suppliers of CNG tricycles are set for shipment to Nigeria and are expected to arrive early in May. About 2,500 of the tricycles will be ready before May 29, 2024,” he added.

Onanuga said the Federal Government was targeting the purchase of 5,500 CNG vehicles (buses and tricycles), 100 electric buses and over 20,000 CNG conversion kits, in addition to spurring the development of CNG refilling stations and electric charging stations.

“With necessary tax and duty waivers approved by President Tinubu in December 2023, the Presidential CNG Initiative committee is partnering with the private sector to deliver the promise of the initiative. The private sector has responded with over $50m in actual investments in refuelling stations, conversion centres, and mother stations,” he said.

Also, the FG, through the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, had issued a directive mandating oil marketing companies to instal CNG pumps in filling stations across the country.

Ahmed, who described the push by the Federal Government to encourage the use of CNG as an alternative to petrol as a revolution, said the government was determined to reduce the burden of petrol on the economy. As such, the government said intending retail licensees would now be required to establish CNG points in their filling stations before getting final government approval.

He said, “We want to reduce the burden of the importation and consumption of PMS. We explored the possibility of converting the energy requirement of retail outlets and depots by the stakeholders here going into solar, but there is a high entry cost. We have discussed that, and it is going to be in phases. By doing so, we will reduce the demand for diesel in terms of powering our generators by utilising solar options. Once we are done with consultations, we will require that CNG add-ons be put in petrol stations and for new applications, one of the requirements will be that you must have a CNG add-on in the petrol station.”

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Energy

ANOH gas project can provide electricity for five million homes — Seplat Energy

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The board chairman of Seplat Energy, Udoma Udoma has announced that the newly inaugurated Seplat Energy ANOH Gas Processing Plant can generate electricity for 5 million Nigerians.

Udoma stated this at the commissioning ceremony of the plant, held in Ohaji, Imo State, by President Bola Tinubu.

Built by the ANOH Gas Processing Plant Company (AGPC), the plant is a joint venture equally owned by Seplat Energy and the Nigerian Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The plant achieved mechanical completion in December 2023, recording no Lost Time Incidents (LTIs) over 12 million man-hours.

With a Phase One processing capacity of 300 million standard cubic feet per day, the ANOH plant is set to deliver dry gas, condensate, and LPG to both domestic and international markets.

Tinubu praised Seplat Energy and its partners for their efforts, stating, “Today is a great day of achievement demonstrating teamwork, commitment, and dedication to duty. I congratulate you for all you have done for the country and for fulfilling this in only 11 months.

“The ANOH gas project strongly aligns with Seplat Energy’s mission of leading Nigeria’s energy transition with accessible, affordable, and reliable energy that drives social and economic prosperity.

“As a testament of our pledge to Nigeria, in partnership with the NNPC Ltd, we have delivered this project that will support the current administration’s drive for industrialization and growth of the economy through low-cost reliable power.

“To put this into context, if all of the gas from this plant went into the power sector, it would produce enough electricity to transform the lives of over 5 million people. Given that Nigeria’s population is growing at a rate of over 5 million per annum, we need one of these plants a year every year just to meet the demand of our new arrivals.

“We appreciate the unwavering support of our partner NNPCL, the cordial relationship with our host communities, Imo state government and the support of all stakeholders that are too many to mention,” Udoma added.

CEO of Seplat Energy, Roger Brown, remarked, “Seplat Energy is pleased with the progressive reforms by President Bola Ahmed Tinubu and his administration. In March 2024, the President signed executive orders to enhance investments in greenfield gas development and midstream capital projects.

“Also, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently improved gas prices under the DSO, to trigger further investments to the domestic gas sector – our ANOH gas plant will benefit from these reforms and incentives. No doubt, the ANOH’s gas will further reduce Nigeria’s carbon intensity and increase energy supplied to the Nigerian domestic market.”

The commissioning ceremony was attended by Seplat Energy’s board members, management and staff, government officials, institutional partners, traditional rulers, and industry players, among others.

Group CEO of NNPC, Mele Kyari, commented on the collaborative efforts, stating, “The ANOH Gas Processing Plant being commissioned by NNPCL and our partner is in line with Nigeria’s decade of gas agenda and particularly consistent with the administration’s efforts to boost gas supply in the domestic market.”

Imo State Governor, Hope Uzodinma, represented by Deputy Governor Chinyere Ekomaru, congratulated Seplat Energy on the timely completion of the project and expressed optimism about the opportunities it brings to the state.

Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, added, “With a capacity of 600 million standard cubic feet per day, the ANOH Gas Processing Plant is a shining example of advancement. This plant will greatly advance the availability of domestic gas which will boost power generation and hasten industrialisation.”

The ANOH Gas Processing Plant, which is situated in Ohaji, Imo State, is poised to emerge as one of Nigeria’s most important gas initiatives. It would speed up the switch from diesel generators to cleaner, more affordable fuels like natural gas for power generation and enable higher gas production.

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