Nigerian Govt Approves Special Gas Pricing For Emergency Contracting

The Nigerian government has approved a special gas pricing for emergency contracting.

The Niger Delta Power Holding Company Ltd (NDPHC), in collaboration with the Nigerian Electricity Regulatory Commission, has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company the Niger Delta Power Holding Company Ltd (NDPHC), the Nigerian Electricity Regulatory Commission has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company

This is contained in a statement from the Federal Ministry of Power a copy of which was obtained by Independent on Saturday.

According to the statement, the approval was done following the emergency meeting convened by the Minister of Power, Engr Abubakar Aliyu, on March 14th 2022 towards the restoration of normal supply of electricity nationwide and the development of a framework for sustainable improvement of supply.

The Ministry in the statement disclosed that the gas pipeline affected by acts of vandalism has been restored and the Okpai Power Plant has resumed power generation and currently contributing an average of 3OOMW.

“Following the emergency meeting convened by the Minister of Power, Engr Abubakar Aliyu, on March 14th 2022 towards the restoration of normal supply of electricity nationwide and the development of a framework for sustainable improvement of supply, we are pleased to apprise consumers with an update on the progress so far made to address the recent challenges in the Nigerian Electricity Supply Industry.

“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. The progress so far made includes, amongst many other initiatives, the following:

“The gas pipeline affected by acts of vandalism has been restored and the Okpai power plant has resumed power generation and currently contributing an average of 3OOMW.

“The Nigerian Bulk Electricity Trading Plc has been directed to enter into fast-track negotiation with NAOC on an interim energy sales agreement with a view to bringing the new Okpai II power plant on the grid thereby contributing additional 40OOMW of generation capacity.

“The “pigging” of the gas pipeline supplying gas to the Odukpani power plant is scheduled for completion on March 21st 2022 thus ramping up generation by about 4OOMW.

“In order to optimise the capacity utilisation of the power plants owned by the Niger Delta Power Holding Company Ltd (NDPHC), the Nigerian Electricity Regulatory Commission has approved a special gas pricing for emergency contracting of gas from the Nigerian Gas Marketing Company” reads the statement in parts.