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Power Crisis: NERC Approves Special Pricing For Contracting Of Gas

Nigerian Electricity Regulatory Commission (NERC) has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company Ltd.

Gatekeepers News reports that this is one of the various steps taken by the federal government to ensure the restoration of power supply nationwide.

The Minister of Power, Abubakar Aliyu, made this known in a statement on Saturday in Abuja.

Aliyu noted that the government has made some progress in addressing the challenges in the power sector.

According to him, the approval was given for power plants owned by Niger Delta Power Holding Company (NDPHC) to optimise the capacity utilisation of the plants.

The Minister added that an on-grid improvement of about 800 Mega Watts (MW) generation capacity was expected from the NDPHC plants with this approval.

Aliyu stated that the approval is a fallout of the emergency meeting he convened on March 14, towards the restoration of normal supply of electricity supply nationwide and the development of a framework for sustainable improvement of supply.

According to him, the Nigerian Bulk Electricity Trading (NBET) Plc was also directed to enter into fast-track negotiation with Nigerian Agip Oil Company (NAOC) on an interim energy sales agreement to bring the new Okpai Il Power Plant in Delta State on the grid thereby contributing an additional 400 Mega Watts (MW)of generation capacity.

The Minister said, “The ‘pigging’ of the gas pipeline supplying gas to the Odukpani power plant in Calabar is scheduled for completion on March thus ramping up generation by about 400MW.

“In the medium-term, we have agreed with the Nigeria Gas and Power Investment Company (NGPIC)a subsidiary of NNPC on the framework for the overhaul of the Okoloma gas  processing plant in River State

“Thereby restoring the full capacity of the 650MW Afam VI in Port-Harcourt combined cycle power plant.’’

Aliyu, while speaking on the progress made to address the recent challenges in the Nigerian Electricity Supply Industry said, “The Nigerian public may please recall that the national grid 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.

“The available generation capacity was exacerbated by the ongoing water management regime at the Kainji, Jebba, and Shiroro power plants.’’

He stated that the progress made so far includes the restoration of the gas pipeline affected by acts of vandalism, the Okpai power plant had resumed power generation and currently contributing an average of 300MW.

He said, “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.’’

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