Special Report

April 25, 2014

The gas supply chain

ALL the power plants are to be fueled by gas.  The Joint Venture Partners in consortium with NNPC will supply all gas from associated and non-associated gas sources.  Gas transmission pipelines will be constructed to convey the gas from new and existing gas sources to the power station sites.

The idea of concentrating on the use of gas powered stations is to reduce gas flaring in the Niger-Delta Area. Experts told Vanguard that about 748 million metric standard cubic feet per day (MMSCF/D) will be consumed by the power plants.

The NIPP project as conceputalised by the Obasanjo administration was to tackle the problem of infrastructural development in the Niger-Delta region, five of the seven of the proposed new power stations were located in Bayelsa, Delta, Cross River, Edo and Imo States where they were expected to add 2,000 MW to the national grid. But the supply of gas to the power stations has remained a major challenge owing to the growing acts of vandalism .

At the time of this report nothing has been heard of the $2.5 billion agreement which between the Federal Government General Electric an American electricity company for the supply of gas turbines and power generation equipment worth $404 million with a 6-year long term servicing agreement estimated at $118 million.

Exit mobile version