FG should invest more in gas to power projects —Stakeholders

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-utilised in the gas to power value chain.

Group Managing Director (GMD), Aiteo Eastern E & P Company Ltd, Victor Okoronkwo, said the nation’s power shortage could be resolved through optimal utilization of the nation’s huge gas deposits.

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According to him, “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. Government should show greater commitment to power generation by providing a favourable environment in order to attract more investors.”

Mrs Dolapo Kukoyi, a member of Nigerian Gas Association (NGA), said there must be maximum co-operation among stakeholders because energy supply is crucial for 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,” she stated.

On her part, 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 said.

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.

Ogaji said, “based on statistics from system operators in Transmission Company of Nigeria, there is a demand forecast of about 26,000MW of

power in Nigeria.

“Currently, there is an installed capacity of 13,427MW from all the Generation Companies of Nigeria (GENCOS), out of which 7500MW are

available for usage on the average. From 2013 till date only 3500MW have been utilized,” she said.