1,000MW of IPP Capacity Idle Due to Gas Shortage

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Nigeria is far from achieving its objective of a regular power supply as 1,000 MW of Independent Power Plant, IPP, capacity are idle due to a lack of gas delivery.

The President of Nigerian Gas Association, NGA, Mr. Bolaji Osunsanya, who stated this during a chat with journalists in Lagos, also said that indigenous players are making significant strategic investments in gas and virtual pipelines to power IPPs and industrial customers. According to him, the gradual movement of the market towards the concept of “willing buyer, willing seller”, and the government’s willingness to ensure an investment-friendly environment, will engender Nigeria’s long term gas development. His assertions came as he informed that NGA will hold a business forum this week. He said, “For a sector with over $55 billion worth of investment opportunities, we are extremely positive of growth in the economy and the potentials for growth in key areas such as exploration and production, processing, supply, and distribution. Also, the NGA’s 2016 business forum will hold on June 29th together with our Annual General Meeting. At the forum, industry stakeholders and policy makers will share perspectives on strategies to re-energize and maximize our natural gas potentials. He explained that feedback from our members suggests that there is significant interest in exploring for and/or developing a local natural gas industry in Nigeria; There will be wider environmental benefits for the country if that increased gas use displaces some elements of coal-fired energy generation; The Nigerian  economy will benefit from gas developments through increased energy security; and Increased availability of natural gas will enable Nigeria to maintain its drive in the gas-to-liquids sector. “Indeed, the government has taken some positive steps to develop gas including the Gas Master Plan rolled out in 2008 along with partial privatization of the power sector over the last two to three years. This has led to a significant increase in the price for natural gas supplied for power generation to around US$2.50/Mscf with further increases requested by producers,” he added.

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