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Monday, September 26, 2022

Nigeria’s state-oil firm NNPC increases gas supply to power generating companies

By GFDNews Correspondent

The Nigerian National Petroleum Corporation (NNPC) said it has revved up gas supply to power generating companies, helping to increase electricity generation and supply in the country.

According to the state-owned oil firm, it supplied 727 million standard cubic feet per day (mmscfd) of natural gas to power generating firms in the month of August 2020, which represents an equivalent of 2,53 MW of power generation.

In a statement by the Group Public Affairs of the NNPC, the gas supply in the month of August represented an increase of 2.80 percent from the previous month.

The statement signed by Kennie Obateru, NNPC Group General Manager indicated that natural gas production in August 2020 increased by 0.13 percent at 236.66 billion cubic feet (BCF) compared to output in July 2020; translating to an average daily production of 7,639.99mmscfd.

The NNPC stated that a total of 3,062.95 BCF of gas was produced, representing an average daily production of 7,771.13 mmscfd in August.

It stressed that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and the Nigerian Petroleum Development Company (NPDC) contributed about 69.96 percent, 20.26 percent and 9.78 percent respectively to the total national gas production.

NNPC also disclosed that total crude oil and gas exports amounted to $139.50 million; increasing by 64.84 percent compared to the previous month.

“Of this number, crude oil export sales contributed $80.27 million (57.54 percent) of the dollar transactions compared with $55.29 million contributed in the previous month. The export gas sales amounted to $59.23 million in the month.”

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The oil firm also increased its trading surplus to N29.60 billion compared with N20.36 billion surplus in July 2020.

“The 45 percent improvement in performance is attributed mainly to the 82 percent growth in surplus posted by the NPDC due to sustained improvement in global market fundamentals,” the statement said.

The NNPC group surplus, according to Obateru, was further enhanced by the 109 percent increase in profit by Duke Oil Incorporated as well as 75 percent and 22 percent reduction in deficits for the Nigerian Pipelines and Storage Company (NPSC).

“The deficits are because of reasons around low sales volume, reduced debt collection and high average product landing cost.

“In the downstream, to ensure continuous increased Premium Motor Spirit (PMS) supply and effective distribution across the country, a total of 0.95 billion litres of PMS translating to 30.53mn liters/day was supplied for the month.

“The corporation has continued to diligently monitor the daily stock of Premium Motor Spirit (PMS) to achieve smooth distribution of petroleum products and zero fuel queue across the nation,” it added.

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