Power Generation Hits 4,600 Megawatts as Egbin Power Station Bounces Back

According to a report by The Tribune, the Director Affairs, Transmission Company of Nigeria (TCN), Mrs Seun Olagunju, said that the nation’s power generation capacity has increased from 3,657 megawatts to 4,600 megawatts. The development was attributed to the resumption of operation at the Egbin Power Station early this week.

While briefing the News Agency of Nigeria (NAN) in Lagos State, on Friday, she added that the power generation started increasing early this week and stood at 4,600 megawatts as of October 16 which is a recommendable feat for the nation’s power sector.

Mrs Olagunju further added that worker’s crises at the plant made the plant record zero generation lately but that the power station has bounced back to 813 MW after one week of unproductivity.

According to a senior management source at the plant who pledged anonymity, informed the media that the management had embarked on repairs of some 'little damage' at the plant to up the generation to 1, 000 megawatts. Egbin Power Plant, the nation’s biggest power generating outfit, had on October 4 lost 1,100 megawatts.

Employment Creation Opportunities From Solar Energy Investment

The Nigeria Directorate of Employment (NDE), has disclosed that there is a concerted effort by the Directorate to use solar energy to boost employment generation in Nigeria, The Nation reports.

A recent report released by the Renewable Energy Policy Network for the   (REN21) shows that each year is seeing progressively more renewable energy generated than the last. Looking at the economic impact of renewables in 2014, the REN 21 report says that over the course of the year worldwide, 7.7 million jobs were created mostly in Chinese solar power production.

Renewable energy projects in many developing countries have demonstrated that it can contribute to poverty alleviation by providing the energy needed for creating businesses and employment.

The NDE Director General, Mallam Abubakar Mohammed, while speaking recently during a solar energy system training, said that NDE had been involved in environmental scanning to address unemployment over the years.

He said one of the steps taken was the training of youths in renewable energy, specifically solar energy systems, due to the energy crisis confronting Nigeria as a nation.

He said although Nigeria needs adequate supply of energy to drive its economy and power its domestic, economic, technological and social sectors, it has however been difficult to meet the energy needs of the citizenry by successive governments.

The NDE boss also stated that the directorate had produced 950 technicians in 19 states of the federation, adding 50 were resettled in Ilorin, Kwara State out of the 100 unemployed youths who were trained while another 50 were resettled in Akure, Ondo State, out of the 61 persons trained.

Nigeria Still Flares 20% of Associated Gas Produced

Nigeria still produces 1.8 trillion standard cubic feet (tcf) yearly and about 20 % of associated gas produced yearly in the country which is enough to generate 6,000 megawatts (MW) of electricity is still being flared, The Nation reports.

The Managing Director, Energy and Mineral Resources Limited (EMR), Abiola Ajayi, has stressed the need for more investments in the sector to monetize the gas instead of burning it. 

He said International Oil Companies (IOCs) have failed to contribute to the domestic gas obligation, which has adversely affected output of the power plants in the country. Ajayi said for the country to achieve 20,000Mw generation by 2020, gas required for open cycle power plants is at least 4.5 billion standard cubic feet per day (bscf/d), and 3.5 bscf/d for combined cycle plants.

Ajayi also said the power sector, which requires about 70 per cent of gas produced for local consumption could not afford a market driven price, which is the reason for the unwilling disposition of the IOCs to commit to domestic supply.

Ajayi called for the establishment of a gas department within the Ministry of Petroleum Resources to oversee the execution of regulations in accordance with the Department of Petroleum Resources (DPR).

He said for gas supply to be sustainable, the government must ensure, among other things, a bankable commercial framework, gas investment drive, and address the issue of pipeline vandalisation as well as pricing based on willing-buyer-willing-seller.

Indigenous Oil Companies Targets 100,000 bopd From IOC’s Divestment

Some indigenous oil and gas companies are looking at producing between 90,000 and 100,000 barrels of oil per day (bopd)in five years time as stated by the Group Managing Director (GMD), Obijackson Group and Chairman of Neconde Energy, Dr Ernest Azudialu-Obiejesi, according to reports by The Nations.

The Obijackson Group is a leading brand with interests spanning oil and gas, maritime, telecommunication, aviation, health, and electricity. The group owns Nestoil and Neconde Energy, the operator oil mining lease (OML) 42, which has a joint venture with the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

Azudialu-Obiejesi said indigenous oil firms, such as Seplat, Neconde, Nestoil and Oando are producing between 30,000 and 70,000 barrels of oil per day, adding that the firms are aiming at 100,000bpd and ultimately becoming big players in the industry.

Furthermore he said that when this happens, the indigenous operators would find it easier to go into other African countries, such as Ghana, Kenya and Angola, to buy oil fields and develop them. Azudialu-Obiejesi said the development could also place indigenous oil firms in vantage position to become oil majors.

He added that with the foreign-owned oil firms for offshore, the coast is clear for indigenous firms to increase their oil production, and further invest in other parts of Africa.

Dangote Gas Pipeline Project Begins Seismic Data Collection

Aliko Dangote, Africa’s richest man who has a net worth of $15 billion according to the Bloomberg Billionaires Index in a bid to quadruple gas supply rate in Nigeria, said that seismic data exploration work has commenced for the multi-billion dollar gas pipeline network project he is embarking on, Business Day reports. 

Major international reputable firms such as the International Finance Corporation (IFC) a member of the World Bank group has shown keen interest in this project and preliminary meetings have been held by the parties, Dangote informed Business Day reporters.

Dangote said the pipeline will be capable of carrying about three billion standard cubic feet (scf) of gas daily when completed, in a country where economic growth has long been held down by the inability to send gas to its thermal power stations.

While Nigeria has gas reserves of about 180 trillion cubic feet, more than any other African country, most of what’s produced is flared or exported because of a lack of infrastructure to transport it to local companies and households.

The Dangote Group has plans to start laying the pipelines before the end of the year, with the first one to become ready by mid-2017, “we are making steady progress on the project and foresee no major hitches, Dangote said”.

When the project is completed, major oil producing companies operating in Nigeria, like the Royal Dutch Shell Plc. and Exxon Mobil Corp. would benefit from using the pipeline because they currently have little incentive to sell gas produced from their fields, Dangote added.