Headlines

February 16, 2011

Gas-to-power: NNPC needs N600bn for projects – Oniwon

BY BEN AGANDE  & INALEGWU SHAIBU
ABUJA — The Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Mr. Austin Oniwon, Wednesday said the corporations needed N600 billion to build gas infrastructures to meet the power generation plans of the present administration.

Oniwon, who appeared before the Senate Committee on Gas  in Abuja, said the NNPC had submitted the proposal of $1.2 billion to the budget office to fund government’s gas-to-power plan, but was not included in the 2011 budget.

He feared that the omission might stall government’s plans to boost power generation in the country by 2011, and pleaded with the Senate to include the proposal in the 2011 budget.

He said: “We have identified the projects we require to deliver the gas to the stations. The total project goes above $4 billion, because nothing was done in 2010.

“But for the critical infrastructure, we submitted the estimate of $1.2 billion to the budget office to be included in this year’s budget, but it is not part of the budget.

“Without this project, if the power projects are realised, without the pipelines, we cannot benefit maximally from the projects.”

Chairman of the Committee, Senator Osita Izunaso, in response to Mr. Oniwon, summoned the Minister of Finance, Mr. Olusegun Aganga, to appear before the Committee next Wednesday to explain the reason behind the exclusion of the $1.2 billion gas-to-power budget estimate in the 2011 budget.

The Committee also directed that the Presidential Committee on Power appear before it to brief on the current power status of the country.

Senator Izunaso said: “It is not good for us to come here to waste time. If we are doing IPP, we cannot power them without gas. We seriously frown on that. It is not right.

“Government is working hard to increase power generation and distribution and we are being told that there is no provision for building gas pipelines and other infrastructures that will aid in delivering gas supply to the power stations in the budget.

“If we cannot get gas to power plants, we have to invite the Minister of Finance to explain to us. How do we intend to achieve extra mega watts if there are no gas pipelines to deliver gas to the power stations?

“The Minister should appear before us next week and explain to us. The Presidential Committee on Power should also come along next week Wednesday to tell us what they have done in ensuring there is an improvement in power situation of the country.”