Stakeholders have decried recalcitrant challenges undermining Nigeria’s efforts to boost electricity supply through gas.
The nation’s enormous gas reserves, estimated at 187 trillion standard cubic feet, are grossly under-utilized in the gas to power value chain.
Operators in the electricity sub-sector stated this, at a conference in Lagos. The event tagged “Harnessing oil and Gas Potential for National Development, ” was under the auspices of Association of Energy Correspondents of Nigeria (NAEC).
The Group Managing Director (GMD), Aiteo Eastern E & P Company Ltd, Victor Okoronkwo, who chaired the occasion, said the nation’s power shortage could be resolved through optimal utilization of the nation’s huge gas deposits.
‘Lack of appropriate synergy between policy makers and players in the energy sub-sector is a major factor for the nation’s epileptic electricity supply,’ he added.
According to Okonkwo, government should show greater commitment to power generation by providing a favourable environment in order to attract more investors.
Similarly, Dolapo of Nigerian Gas Association (NGA), said there must be maximum co-operation among stakeholders because energy supply is for crucial economic growth.
She also identified lack of infrastructure deficiencies in delivery of gas stockpile to power stations, regulated low prices, poor remittance and policy somersaults, as major challenges undermining their targets
and operations.
According to her, provision of adequate infrastructure and robust fiscal incentives would help in reducing losses and low productivity, which will invariably boost investment and economic activities in
the industry.
“Proper regulatory and contractual framework will ensure credibility and marketing the products to off takers.”
Executive Secretary, Association of Power Generation Companies (APGC), Dr. Joy Ogaji, highlighted the significance of gas in power generation, saying, ‘over 80 percent of power generated in Nigeria
comes from gas.’
She reiterated the urgency for collaboration among players in the petroleum industry and the ministry of power, in order to actualize increasing electricity projections and sustainability in the gas to
power chain scheme.’
Speaking on the topic: ‘Commercial Viability of Gas in Power Generation,’ OgaJi said, ‘based on statistics from system operators in Transmission Company of Nigeria, there is a demand forecast of about twenty-six thousand Megawatts (26,000mw) of power in Nigeria.’
“Currently, there is an installed capacity of 13,427 megawatts from all the Generating Companies of Nigeria (GENCOS), out of which 7500 megawatts are available for usage on the average. From 2013 till date
only 3500megawatts have been utilized.’
According to her, the nation should invest massively in gas to power generation, in order to attract the right local and foreign investors, given the nation’s huge energy demand and also gas deposits.
