Nigeria’s Gas Market Under Threat, Says Investors

gas-pipeline-1024x683 (2)

In West Africa, Nigeria’s major gas suppliers have concluded that the country is no longer investor-friendly, but rather a high-risk environment for new investment.

This statement was made during a recent industry conference in Lagos, where investors voiced concern around the recent attacks on oil and gas infrastructure in the Niger Delta, Naij reported.

Raising concerns around the vulnerability of the existing oil and gas infrastructure the CEO of Frontier Oil (suppliers of gas to Calabar, Alaoji and Ibom power stations), Dada Thomas, said the only solution to the Niger Delta crisis was good governance, noting that this is lacking in the west African country.

Thomas said: “A high-risk environment like Nigeria is not a destination for investment. We are not a fantastic investment destination. Good governance is the only answer to vandalism, but this is lacking in Nigeria since independence.”

Gas market on the go-slow

According to the gas supplier, which supplies fuel to generate 450MW of the country’s power, both the use of the full weight of law and the involvement of the political leadership was necessary to tackle the existing challenges in the Niger Delta, Naij reported.

Thomas said: “When you reward criminality, you create more criminality. But the government should also get the political leadership involved in the negotiating table.”

With efforts to boost power supply, efforts need to focused around developing the gas infrastructure, to ensure a secure power network in the long-term, said chairman of Geometric Power Limited and a former Minister of Power, Professor Bart Nnaji.

Deploying more power

In other Nigerian energy news, the Nigerian Electricity Supply Industry (NESI) released statistics on Tuesday indicating that the Transmission Company of Nigeria (TCN) had deployed  3,061MW of power to 11 distribution companies, The Nation Online reported.

The NESI report indicated that the reported gas constraint was 3,025MW and the reported line constraint was 389.3MW, according to TCN.

NESI added that the reported high frequency constraint is 107.5MW, noting that on August 30, 2016 the power sector lost an estimated $ 5,360,833.208 as a result of these constraints.

According to The Nation Online: “TCN on the same day wheeled 2,927MW to the Discos . NESI said the power sector’s recorded highest system frequency of 51.58Hz, lowest system frequency of 49.12Hz, highest voltage recorded was 372KV, while lowest voltage recorded on the same day was 300kV.”

Source

(Visited 74 times, 1 visits today)

Top
Powered by Nextier