Nationwide blackout: FG directs NBET to negotiate with Agip Oil on energy supply

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dabc power x

From Isaac Anumihe, Abuja

Following the refusal of the gas companies to supply gas to the generation companies due to the huge debts owed them, Federal Government, yesterday, directed Nigerian Bulk Electricity Trading Plc (NBET) to enter into fast-track negotiation with Agip Oil (NAOC) on an interim energy sales agreement with a view to bringing the new Okpai Il Power Plant on the grid.

This, according to the government, would contribute additional 400MW of generation capacity.

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In a statement, the Minister of Power, Abubakar Aliyu, said that the “pigging” of the gas pipeline supplying gas to the Odukpani Power Plant is scheduled for completion on March 21, 2022 thus ramping up generation by about 400MW.

“In order to optimise the capacity utilisation of the power plants owned by the Niger Delta Power Holding Company Ltd (NDPHC), the Nigerian Electricity Regulatory Commission (NERC) has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company


Limited.

“We expect an on-grid improvement of about 800MW generation capacity from the NDPHC plants.


In the medium-term, we have agreed with NGPIC (…a subsidiary of Nigerian National Petroleum Corporation (NNPC) on the framework for the overhaul of the Okoloma Gas Processing Plant thereby restoring the full capacity of the 650MW Afam VI combined cycle power plant.

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“While the recent spate of system collapse is regrettable, it was a direct consequence of a snap on a 330kV transmission line. The mitigation measures for avoiding such incidence of blackouts are being implemented through several interventions including the Presidential Power Initiative.

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“We wish to reassure all electricity consumers that all relevant agencies involved in the restoration of normalcy in power supply have been charged to act in the context of the emergency state of the industry. The Federal Ministry of Power shall continue to periodically update the nation on the progress.

“The Nigerian public may please recall that the national grid lost about 1,100MW generation capacity as a consequence of simultaneous disruptions in gas supply to the Okpai, Calabar and the Afam VI power plants. The available generation capacity was exacerbated by the ongoing water management regime at the Kainii, Jebba and Shiroro power plants. The progress so far made includes, amongst many other initiatives, the following:


The gas pipeline affected by acts of vandalism has been restored and the Okpai Power Plant has resumed power generation and currently contributing an average of 300MM/.

Addressing newsmen in Abuja, last Sunday, March 13, 2022, the Executive Secretary of the generation companies, Dr Joy Ogaji disclosed that the gas companies have refused to supply gas to them because they are owing the gas companies a huge sum of money.

According to her, the Federal Government, through its agency, Nigerian Bulk Electricity Trading (NBET) is owing GenCos over NI.644 trillion, a situation that has incapacitated their operations.

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