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…Sets up inter-ministerial committee
By Adewale Sanyaolu
The Federal Government has outlined the challenges causing low supply of gas to thermal power plants to include; gas legacy debts, vandalization of oil and gas pipeline infrastructure in the Niger Delta region, domestic pricing of gas in dollars, among others constraints.
Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, stated this at the inauguration of an Inter-Ministerial Committee that will suggest ways and means of achieving steady and sustainable gas supply to power generating plants to meet both domestic and industrial needs of Nigerians in line with the Renewed Hope Agenda of President Ahmed Bola Tinubu’s administration in Abuja, yesterday
The Inter-Ministerial Committee was formed at the end of a meeting between the Ministry of State for Petroleum Resources (Gas), and the Ministry of Power with both Ministers in attendance.
Ekpo expressed his willingness to work harmoniously with any individual, organisation and agency to solve these challenges.
“We need to work collaboratively to solve the problem of gas supply to thermal plants and uninterrupted power supply to consumers in the country. There is absolutely nothing that can be done in Nigeria without stable power,” Ekpo said.
Also speaking, Minister or Power, Mr. Adebayo Adelabu, stated the need for the two Ministries to work collaboratively to resolve the problem of low gas supply to thermal power plants in order to achieve uninterrupted power supply in the country.
He assured that resolutions from the committee would be submitted to President Bola Tinubu, to be acted upon to bring an end to the crisis in the power sector.
Members of the committee were drawn from the Ministries of Petroleum Resources and Power, regulatory agencies, operators and critical stakeholders in the gas and power sectors.
Recall that the Managing Director, Shell Petroleum Development Company of Nigeria, Osagie Okunbor, had two days ago said that the total gas debts to gas producing firms was now $1.3 billion and was negatively impacting on investments in the sector.
Okunbor, who spoke on behalf of the Oil Producers Trade Section, a body made up of international oil companies, said this was hampering investments in the sector and should be addressed.
“At the last count we are owed about $1.3bn for gas that has been produced and sold in the past. If you are owed that kind of money across board, you can imagine the impact. I work for Shell and my colleague here with me works for Chevron, and I think between us we are owed probably the largest share of this.
“So it doesn’t create the environment for you to want to put in more and it is a key issue for the Decade of Gas discussions that we are having. How do we crack this problem so that you incentivise people to make investments.
“How do we build the infrastructure? You heard the minister talk about key infrastructural projects that are under construction such as the AKK (Ajaokuta-Kaduna-Kano pipeline project) and others,” the Shell boss stated.
