Former chairman of the Nigerian Electricity Regulatory Commission (NERC), and managing director of Aiteo Power and Gas Dr. Ransom Owan has lamented that inadequate gas supply to thermal power stations is frustrating reform in the sector.
Owan who spoke at the West African Power Industry Convention (WAPIC) conference in Lagos said that the privatisation of ten power stations built under the National Integrated Power Project (NIPP) has been stalled due to irregular gas supply.
He said the federal government could generate up to $5.6 billion in the sale of the power plants, but pointed out that “lack of gas is stalling the deals.”
The first phase of the NIPP project was designed to generate 4,771 megawatts from the ten gas-fired power stations with committed investment to date from the federal, state and local governments in the Niger Delta Power Holding Company (NDPHC) and NIPP amounting to $8.475 billion.
A Status Report presented to the 31st meeting of the Board of Directors of the NDPHC held on April 17, 2015, showed that six out of the ten power stations are ready to generate 2,910.1 megawatts of electricity, subject to availability of gas to the plants.
The report identified the six NIPP power plants, which are already adding power to the national grid.
A breakdown of the generating capacities of these plants showed that the 562.5 megawatt-capacity Calabar Power Station built by Marubeni is now generating 112.5 megawatts; 451mw-capacity Ihovbor Power Plant in Edo State is generating 225 megawatt.
Also, the 451mw-capacity Sapele Power Station built by Marubeni is currently generates 112.5mw.
Others include 450 mw-capacity Olorunsogo Power Station in Ogun State, which generates 225megawatts, 450 megawatt-capacity Omotosho Power Station in Okitipupa Local Government Area of Ondo State which generates 225 megawatts and 434.1mw-capacity Geregu Power Station in Kogi State, which generates 289.4 megawatts.
The report also disclosed that there are no committed gas supplies for Geregu and Ihovbor.
The National Economic Council (NEC) under the former administration had since approved that each of the generation stations be incorporated as a limited liability company with 80 per cent of their shares offered for sale to private investors.
However, the privatisation of the ten plants, scheduled for completion mid last year has suffered setbacks due to inadequate gas to test-run completed ones.