Ameliorating gas-induced power outages

Statistics show that out of the installed capacity of 6,972.6 megawatts, actual power supply hovers between 4,064.1mw and 3,341.2mw, being the peak and off-peak values respectively. And the reason for this disheartening picture is shortage of gas supply to the power plants.The Nigerian National Petroleum Corporation (NNPC) blames the gas shortage on pipeline vandalism. NNPC’s […]

Statistics show that out of the installed capacity of 6,972.6 megawatts, actual power supply hovers between 4,064.1mw and 3,341.2mw, being the peak and off-peak values respectively. And the reason for this disheartening picture is shortage of gas supply to the power plants.
The Nigerian National Petroleum Corporation (NNPC) blames the gas shortage on pipeline vandalism. NNPC’s Group Managing Director, Mr Andrew Yakubu, said that over thirty percent of installed gas supply was shut out as a result of the activities of vandals. He added that the lost gas was equivalent to what was required to generate about 1,600mw of electricity. Ultimately, about 2,326.3mw of the available generating capacity is unutilized across ten power stations in the country due to gas shortage.
Specifically, Nigeria’s biggest power station at Egbin has installed capacity of 1,000mw, which recently went down to 915mw, the shortfall blamed on low gas pressure. In the same vein, the Sapele National Integrated Power Project plant and the one at Olorunsogo with capacities of 360mw and 480mw respectively also witnessed zero generation recently due to gas-related challenges, among other reasons. It has been the same situation with virtually all of Nigeria’s gas-fired plants as each recorded significant or total loss of deliverable power at one time or the other.
Although the NNPC reported success in the repair of the Escravos-Lagos Pipeline System (ELPS) and progress of repair work on other vandalized pipelines, such developments can only provide limited relief to gas-related power outages. The situation calls for a more concerted approach to assure regular and stabile power supply in the country, especially as the gas-fired plants generate about 80% of the electric power.
Even as the NNPC cites sabotage to its pipeline network as the biggest single obstacle, a more robust examination of the problem draws attention to a wider complement of factors.
For instance, until recently the management of the nation’s gas resource has been anything but excellent. Even in the best of times, efforts at addressing the challenges in the gas sector have not yielded expected results. There have policy options that were touted to eliminate the wasteful syndrome of gas flaring, including the Associated Gas Gathering System (AGGS) programme, but which have failed to stop the practice. Beyond this however is the condition of the pipelines, many of which have exceeded their designed lifespan by decades.
As a result of mismanagement that stems from policy somersaults Nigeria, which is among the world’s most gas-endowed nations, is not benefiting maximally from the resource. Rather, the country loses billions of dollars annually as gas is flared away on a daily basis. The fact that oil production companies will prefer to pay penalties for flaring gas wastefully instead of contributing to end the practice is an indictment on the part of the NNPC.
The issue of pipeline vandalism is one that has been handled with less discretion than is required. The criminal practice is a major threat to national security. This is why the security considerations in respect of the nation’s core assets should include the protection of the nation’s pipeline network. If it was not an issue in the past, it is now because the nation’s power supply depends on gas.
Ultimately however, the much-debated Petroleum Industry Bill (PIB) which offers a new management paradigm for the Nigerian oil and gas industry, would chart for the nation a viable course for action that will address the power sector’s multifaceted problem.  That is why the PIB passage as soon as possible is of crucial importance.