Power crisis: FG approves special gas pricing for emergency contracting from GasCos

Following the chronic electricity outages recently being witnessed by customers across the country, the Federal Government (FG) through the Nigerian Electricity Regulatory Commission (NERC) has approved a special gas pricing for emergency contracting from the Nigerian Gas Marketing Company Ltd.

The outages were attributed to gas shortages,  low water in the hydro plants.

The Minister of Power, Abubakar Aliyu, in a statement issued on Saturday, reiterated that the national grid had 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. 

He added that the available generation capacity was further exacerbated by the ongoing water management regime at the Kainji, Jebba and Shiroro power plants.

However, he said the vandalised gas pipeline has been restored and the Okpai power plant has resumed power generation and currently contributes an average of 300MW to the grid.

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While giving updates on the progress so far made to address the recent challenges in the Nigerian Electricity Supply Industry (NESI), he said the Nigerian Bulk Electricity Trading Plc (NBET) has been directed to enter into fast-track negotiation with the Nigerian Agip Oil Company (NAOC) on an interim energy sales agreement.

He said this with a view to bringing the new Okpai Il power plant on the grid thereby contributing an additional 400MW of generation capacity.

Also, he said the “pigging” of the gas pipeline supplying gas to the Odukpani power plant is scheduled for completion on March 21 st 2022 thus ramping up generation by about 400MW.

“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 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.

“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.

“We wish to reassure all electricity consumers that all relevant agencies involved in the restoration of normality in power supply have been charged to act in the context of the emergency state of the industry,” he said.

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Power crisis: FG approves special gas pricing for emergency contracting from GasCos