The federal government has set up an Inter-Ministerial committee from the Ministry of Power and Gas to suggest sustainable ways to ensure a steady and sufficient gas supply to electricity generation companies.
The committee was formed following a meeting between the two Ministries at the Office of the Minister of State Petroleum Resources Gas in Abuja.
During the meeting, the Minister of Petroleum Resources Gas, Ekperikpe Ekpo outlined the challenges contributing to the inadequate supply of gas to the Thermal Power Plants.
He noted that these issues include a Decade of Gas legacy debts, the vandalization of gas resource infrastructures in the Niger Delta Region, and the domestic pricing of gas in dollars.
Ekpo affirmed his readiness to collaborate harmoniously with individuals, organizations, and agencies to address these challenges.
Backstory
Since the last quarter of 2023, electricity generation companies have been functioning below their capacity as a result of an inadequate supply of gas.
Last week the Minister of Power, Bayo Adelabu stated that two of the nation’s biggest electricity generation companies- Omotosho and Olorunsogo power stations were operating below 25% of their capacity due to low gas supply.
Recently, the national electricity grid shut down plunging the nation into darkness due to a shortage of gas supply to generation companies.
More Insights
- Although Nigeria has the 10th largest proven gas reserve in the world, with around 206 trillion cubic feet (cf) of proven gas reserve, Nigeria has failed to exploit the potential for power generation and other allied activities.
- In 2021, former President Buhari launched the Decade of Gas initiative which aims to amongst others by 2030 make Nigeria a gas-powered economy. The signal project key to achieving the goal is the AKK gas pipeline which aims to transport gas from the Niger Delta to the Northern parts of the country.
- The administration of President Tinubu plans to leverage CNG for transport as a cheaper alternative to PMS following the removal of fuel subsidy in May.
- The Presidency in September announced that the Federal government has secured around $13 billion of investment in the oil and gas sector from IOCs like Exxon Mobil etc.
