NNPC increases gas supply to power plants by 123%

The Nigerian National Petroleum Corporation (NNPC) has increased daily average natural gas supply to the nation’s gas power plants by 123 per cent to 730 million standard cubic feet per day (mmscf/d), a report said.

Also the corporation yesterday signed a Joint Venture agreement with the Greenville Oil and Gas Co. Limited for the production and distribution of Liquified Natural Gas (LNG) from Rumuji, Rivers state without pipelines to other parts of Nigeria, especially in the north.The Minister of State for Petroleum Resources, Dr. Ibe  Kachikwu, who made this known yesterday,  the project which stretches for about 1,000Km is to have the capacity of create numerous jobs for truck drivers, attendants and others, adding that the negotiation of the agreement had been on in the past three years.According to the report, gas supply to power plants increased slightly by 0.13 per cent from 729mmscf/d in May 2017 to 730mmscf/d in June 2017.The report also indicated that nationwide petroleum products supply continued to record remarkable stability following the performance of Nigeria’s three refineries which produced between five and six million liters of Premium Motor Spirit (PMS), also known as petrol, per day in June 2017.The refineries also produced between five and six million litres of Automotive Gas Oil (AGO), also known as diesel, per day in the period under review.“The Corporation has maintained seamless nationwide supply and distribution of petroleum products which guarantees stable products and queue-free filling stations across the nation,” the report stated.He said the agreement which would in the first instance produce 250 Standard Cubic Feet per can increase to 500SCUF per day in the long run.

According to him, the “agreement will help us unlock undeliverable opportunities in terms of supply to power and supply entities. It will help some of the oil companies to meet up with their Direct Supply Obligations that they had earlier signed that they have been unable to execute.”He added that “we need to find our ways that in the absence of sufficient trucking to put pipelines in place very rapidly we needed to look for new technology . And we had been having this conversation over the last two three years. We started first by looking at the structure in which the gas and power of NNPC was working and we set up two companies -the NGLC which is the marketing company itself and of course the NGPTC, which is supposed to deal with the infrastructural provision.”The minister predicated the success that led to the signing of the agreement on the calmness in the Niger Delta which will enable the company access the gas.He said that the pioneer gas trucked project is coming as a challenge and opportunity to other investors that have been looking for a way to access and distribute gas in the absence of pipelines.Continuing, he said that “this doesn’t take away the need for pipelines. We are going to continue providing pipelines. But what is there is that we no longer can wait. We can actually move in a very robust manner and to get gas up in the north.”

Kachikwu noted that what is still needed to be done is ensure that the payments issues are dealt with and the financing is being smooth for both the producer of the gas and the individuals who take responsibility to distribute it are both adequately paid.The minister stressed that “I think we will be working with you as federal government agencies once we begin to deploy to places like NNPC, the Central Bank, the Senate to ensure that payment under the new system are made on time. So that there is a good financing and funding for you to do the future expansion project.Kachikwu said that : “The first one is 220 per day but it has the capacity to go up to 5,000 per day . So it is quite massive. So what you find is that over the next three to four years if the right finances are put in place and adequate patronage and market is created this could actual metamorphose into the avenue for deploying gas in the country.”He urged other investors to emulate the model especially at the centre where people can afford to pay the right kind of pricing for the supply of power.The report also showed that the performance of the Port Harcourt Refinery continued to improve with a boost to the midstream value chain as it inched towards sustained commercial operations.The pump price of diesel had crashed by 42 per cent nationwide following strategic intervention by the Corporation in May 2017.

On pipeline vandalism, the report indicated that the Corporation recorded about 86 cases of pipeline breaks across the country in the period under review.According to the report, out of these 86 cases, 77 were due to pipeline vandalism, which represents almost 40 per cent increase relative to cases recorded in the previous month (May 2017).The report added that while the Port Harcourt-Aba line recorded the highest pipeline breaches of 55 points (66 per cent), there was also an unusual upsurge in the activities of vandal along Kaduna-Zaria line which witnessed 13 vandalised points during the period.There was also a slight decrease in national gas production compared to previous month which stood at 227.15BCF or an average of 7,571.50 mmscfd, the report noted.This, the Corporation explained, was despite sustaining the success recorded by its enhanced crude oil evacuation and oil lifting in June, 2017 following re-opening of Forcados Oil Terminal (FOT) on 31st March, 2017.The NNPC further called on Nigerians to continue to support the Corporation in the area of security with a view to ensuring zero vandalism of the nation’s oil and gas infrastructures.The June 2017 report is the 23rd edition in the series which seeks to sustain effective communication with the Corporation’s stakeholders in line with its commitment to becoming more accountable, responsive and transparent organisation.