Nigeria to increase power supply by 5,000 MW as NNPC near completion of gas projects to boost electricity generation
Nigeria may increase its power generating capacity by 5,000 megawatts as soon as the ongoing gas projects throughout the country are completed, said the managing director of the state-run energy firm.
The Nigerian National Petroleum Corporation (NNPC), managing director, Mele Kyari, who spoke at a virtual event organised by the Nigerian Gas Association (NGA) said the NNPC was committed to fulfilling President Muhammadu Buhari’s directive to boost domestic gas supply.
Kyari, who was represented by the Chief Operating Officer, Gas and Power, Yusuf Usman, said progress was being made on several of the projects, including the NLNG Train 7, with a foreign direct investment of between $3 billion and $5 billion.
Nigeria currently has the capacity to generate about 10,000 Mw of electricity through gas power turbines and hydro plants across the country.
Ministry of power officials said the country can deliver more electricity but for lack of adequate gas supply to the generating plants and weak transmission infrastructure.
The NNPC chief listed other gas projects currently ongoing as the AKK, which he described as one the largest and most aggressive gas infrastructure that has ever been embarked upon in Nigeria, stretching 614 km from Ajaokuta, Abuja, Kaduna and Kano, and Lot B of the OB3 gas project, which is already producing 125 mmscfd of gas.
Kyari stated that by the end of this quarter, the project would “cross the River Niger”, which will successfully create a highway to move the huge gas resources in the eastern area to the west.
He said the NNPC was looking to establish two gas hubs, one at Oben and the other at Brass, adding that one of the presidential mandates is to deliver on gas and power and create a market in the domestic environment that will consume the planned 4.5bcf of gas.
He said for the first time, the corporation, in collaboration with its partners, are able to raise about $260 million within Nigerian merchant banks and two African banks for the Asa north gas project.
“Something we need to emphasise in terms of gas utilisation in Nigeria is the power sector. All our projections have shown that 60 to 70 percent of this gas that we hope to sell off the 4.5 bcf will come from power.
“At the moment, the power sector is challenged and all efforts have to be put in to unlock the liquidity in the downstream sector and expand the transmission network.
“This will enable us to sell the gas we have already invested in and enhance the economic prosperity of the country.
“Within the NNPC, we are looking to establish about five gigawatts of additional power into the network.
“So, NNPC is engaging with the stakeholders to resolve the power sector issue so that investment that has been made in generating gas can be realised.”
Kyari also stated that the NNPC had begun to create a link between the domestic gas pipeline infrastructure and export gas pipelines to create an outlet into the export route which will make the projects more bankable.