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Vanguard Newspaper 30 January 2018

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24—Vanguard, TUESDAY, JANUARY 30, 2018<br />

11 DISCOs reject 18,648.66mw of <strong>el</strong>ectricity in 14 days<br />

•as TCN transmits 57, 667mw <strong>to</strong> 11 DISCOs<br />

By Prince Okafor<br />

DESPITE<br />

several<br />

promises made by the<br />

Federal Government <strong>to</strong> ensure<br />

<strong>to</strong>tal evacuation of generated<br />

power <strong>to</strong> consumers, Nigerians are<br />

yet <strong>to</strong> see any dev<strong>el</strong>opment, as the<br />

nation’s 11 Distribution<br />

Companies, DISCOs rejected 18,<br />

648.66 megawatts (mw) of<br />

<strong>el</strong>ectricity in the first two week of<br />

2018.<br />

Vanguard investigation shows<br />

that, Ikeja Distribution<br />

Companies, IKEDC, <strong>to</strong>pped the<br />

list of the DISCOs that rejected<br />

<strong>el</strong>ectricity within the period under<br />

review, with a <strong>to</strong>tal of 3,557mw,<br />

followed by Eko DISCO,<br />

2,745.5mw, and Ibadan DISCO,<br />

with a <strong>to</strong>tal of 2,192.5mw.<br />

Others include: Abuja DISCO,<br />

1,885.2mw, Enugu DISCO,<br />

1,690mw, Kaduna DISCO,<br />

1,533mw, Benin DISCO, 1,330mw,<br />

Kano, DISCO, 1,295mw, Jos,<br />

1,086mw, Port Harcourt DISCO,<br />

753mw, and Yola DISCO, 612mw.<br />

It was also gathered that a <strong>to</strong>tal<br />

of 5,689.5mw of <strong>el</strong>ectricity was<br />

rejected by the 11 DISCOs from<br />

January 1 <strong>to</strong> 7, 2018, while a <strong>to</strong>tal<br />

of 12,959.2mw was un-utilized<br />

between January 8 and 14, 2018.<br />

Findings also show that a <strong>to</strong>tal of<br />

57,667mw of <strong>el</strong>ectricity was<br />

transmitted <strong>to</strong> the 11 DISCOs from<br />

the national grid allocation by the<br />

Transmission Company of<br />

Nigeria, TCN.<br />

Miles<strong>to</strong>nes in the<br />

power sec<strong>to</strong>r<br />

In a report obtained from the<br />

TCN, IKEDC, has the highest<br />

allocation which <strong>to</strong>talled at<br />

8,540mw, followed clos<strong>el</strong>y by<br />

IBEDC, at 7,328mw, next <strong>to</strong><br />

EKEDC at 7,013mw.<br />

Others include: ABEDC,<br />

6,682.5mw, EEDC, 5,083mw,<br />

KEDCO, 4,283MW, PHEDC,<br />

4,002mw, Kaduna Electric,<br />

3,908mw, JEDC, 3,100mw, BEDC,<br />

2,324mw and YEDC, 1,999mw.<br />

The report also noted that the<br />

daily estimate of power requested<br />

by DISCOs for the period under<br />

review, averaged 50,968mw. A<br />

<strong>to</strong>tal of 8,797mw was allocated <strong>to</strong><br />

IKEDC, followed by IBEDC at<br />

5,898mw, 5,598mw for ABEDC,<br />

amongst others. Despite<br />

57,667mw of <strong>el</strong>ectricity that was<br />

transmitted <strong>to</strong> the 11 DISCOs from<br />

the national grid by TCN, only 40,<br />

045mw of power was accepted by<br />

the DISCOs, with IBEDC<br />

accepting the most at 5,226mw<br />

followed IKEDC, 4,983mw.<br />

The Minister of Power, Works<br />

and Housing, Mr. Babatunde<br />

Fashola has said that there is<br />

currently 2000 megawatts (MW)<br />

of <strong>el</strong>ectricity that could be<br />

generated and sent <strong>to</strong><br />

manufacturing bases across<br />

Nigeria but are not being utilised<br />

because manufacturers have not<br />

shown interests <strong>to</strong> take up this idle<br />

volume of <strong>el</strong>ectricity.<br />

Fashola, stated that the country<br />

had recorded some miles<strong>to</strong>nes in<br />

its power sec<strong>to</strong>r in the last year,<br />

and would like <strong>to</strong> improve on them<br />

in 2018. The Minister noted that<br />

while power generation and<br />

transmission capacities of the<br />

country had grown <strong>to</strong> 7,000MW<br />

respectiv<strong>el</strong>y, distribution had only<br />

inched up <strong>to</strong> 5,000MW, leaving a<br />

balance of 2,000MW unused<br />

which could be chann<strong>el</strong>led <strong>to</strong> the<br />

industrial bases of the country.<br />

He said that the government<br />

would want manufacturing outfits<br />

and clusters in the country <strong>to</strong><br />

indicate their willingness and<br />

where they want the excess power<br />

<strong>to</strong> be chann<strong>el</strong>led <strong>to</strong> them for<br />

consumption.<br />

Manufacturers in the country<br />

had frequently complained of poor<br />

<strong>el</strong>ectricity supplies and rising cost<br />

of independently providing the<br />

<strong>el</strong>ectricity they need <strong>to</strong> undertake<br />

their operations, while the<br />

government in 2017 approved a<br />

regulation for <strong>el</strong>igibility cus<strong>to</strong>mers,<br />

thus paving the way for heavy<br />

power users <strong>to</strong> enter in<strong>to</strong> contracts<br />

for direct power purchases with the<br />

generation companies<br />

(GENCOs).<br />

According <strong>to</strong> the Minister, “We<br />

are also putting <strong>to</strong>gether a policy<br />

position <strong>to</strong> h<strong>el</strong>p expand the<br />

distribution network of the<br />

DISCOs and use this <strong>to</strong> distribute<br />

the 2,000MW that is currently<br />

available but cannot be distributed.<br />

“I also use the opportunity <strong>to</strong> call<br />

out <strong>to</strong> manufacturers <strong>to</strong> let us know<br />

where they are, how much power<br />

they need, and how we can<br />

connect you because we have<br />

2000MW of undistributed power.”<br />

System Collapse<br />

Nigerian LNG cargo <strong>to</strong> arrive Portugal <strong>to</strong>morrow<br />

By Prince Okafor & Ojhe<br />

Efe-Fashe<br />

Acargo of liquefied natural<br />

gas loaded at the Nigerian<br />

Liquefied Natural Gas, NLNG,<br />

facility on Bonny Island is currently<br />

on its way <strong>to</strong> Portugal.<br />

According <strong>to</strong> the shipping data<br />

provided by the port of Sines, NLNG<br />

carrier LNG River Niger with the<br />

capacity <strong>to</strong> transport 141,000 cubic<br />

meters of the chilled fu<strong>el</strong> is<br />

scheduled <strong>to</strong> arrive at the REN's<br />

Sines LNG terminal on January 31.<br />

The vess<strong>el</strong>, built by the South<br />

Korean shipyard Hyundai Heavy<br />

Industries in 2006 is owned by a<br />

Nigeria LNG unit, Bonny Gas<br />

Transport (BGT), and is currently<br />

on its way in the Atlantic, off the<br />

coast of Liberia.<br />

The export facility on Bonny<br />

Island has the capacity <strong>to</strong> produce<br />

22 million <strong>to</strong>ns of LNG per year<br />

while the Sines LNG terminal on<br />

Portugal's Atlantic coast has the<br />

nominal capacity <strong>to</strong> handle 5.26<br />

billion cubic meters per year.<br />

Meanwhile, the Vice-President of<br />

National Liquefied Petroleum Gas<br />

Association, NLPGA, Mr. Nuhu<br />

Yakubu, has said the association<br />

plans <strong>to</strong> improve the availabiity of<br />

Meanwhile, the Transmission<br />

Company of Nigeria (TCN) on<br />

January 2, 2018 said that a fire<br />

incident on the gas pip<strong>el</strong>ine<br />

supplying six generation<br />

companies (GENCOs) in the<br />

western part of Nigeria triggered<br />

a sudden collapse of the grid. The<br />

grid was res<strong>to</strong>red afterwards but<br />

the six GENCOs had their gas<br />

supply cut off and had <strong>to</strong> shut<br />

down. The GENCOs’ operational<br />

output of 1,143MW as at when the<br />

•as NLPGA plans <strong>to</strong> ease discharge burdens<br />

LPG <strong>to</strong> Nigerians and subsequent<br />

means of reducing traffic at the<br />

Lagos Port terminal.<br />

He also assured Nigerians <strong>to</strong><br />

expect new LPG terminals later in<br />

the year <strong>to</strong> ease the burden of<br />

discharging the product.<br />

"In 2018, I am sure there will be<br />

more activities and more terminals<br />

<strong>to</strong> take the pressure away from<br />

Apapa. The Apapa congestion is a<br />

challenge <strong>to</strong> the industry. More<br />

terminals are coming up. Even if it<br />

was not an issue of the logistics in<br />

Apapa alone, all the pressure in<br />

one axis of Nigeria alone is not<br />

going <strong>to</strong> h<strong>el</strong>p anyway so there is<br />

need for more terminals.<br />

"We b<strong>el</strong>ieve that in the South-East,<br />

South-South region of Nigeria,<br />

there are a few terminals that are<br />

matured and they will be opening<br />

doors <strong>to</strong> the public anytime soon."<br />

He further stated that the<br />

Petroleum Products Marketing<br />

Company, PPMC is expanding its<br />

terminals, while the Nigerian<br />

National Petroleum Corporation,<br />

NNPC, has started reactivation of<br />

inland terminals.<br />

He said that more bottling plants<br />

have sprung up in recent time,<br />

adding, "The ones that were idle<br />

Source: Vanguard Energy Database<br />

fire incident occurred was lost. The<br />

affected GENCOs include<br />

1,320MW Egbin and 60MW<br />

Paras NIPP, in Lagos State;<br />

676MW Olorunsogo NIPP and<br />

338MW Olorunsogo in Ogun<br />

State. The others are 450MW<br />

Omo<strong>to</strong>sho NIPP and 338MW<br />

Omo<strong>to</strong>sho in Ondo State.<br />

Regrettably, 10 days after the<br />

Escravos Lagos Pip<strong>el</strong>ine System,<br />

ELPS was burnt by bush fire and<br />

res<strong>to</strong>red, The Nigeria National<br />

Petroleum Corporation, NNPC,<br />

before have been reactivated, skid<br />

plans have come up, not <strong>to</strong> even<br />

mention the road tankers which<br />

are a critical component of the<br />

value chain."<br />

He acknowledged that as at 2007<br />

there were less than 100 LPG<br />

tankers in Nigeria but as at the last<br />

count during the third quarter of<br />

2017, the number of road tankers<br />

in Nigeria is in excess of a<br />

thousand.<br />

"There's been a phenomenal<br />

growth in LPG throughout the<br />

entire value chain as with the<br />

demand as w<strong>el</strong>l. You can imagine<br />

from a mere 700 metric <strong>to</strong>nnes per<br />

annum grow demand number as<br />

at 2007 <strong>to</strong> 10 years down the line<br />

is now about 600,000 metric<br />

<strong>to</strong>nnes.<br />

"There's no industry that has<br />

enjoyed such quantum of growth<br />

as NLPG, but we have <strong>to</strong> manage<br />

the fallout of this quantum growth<br />

so that we don't experience any<br />

incidence."<br />

"For the number of LPG plans<br />

that has been rolled out in the last<br />

three <strong>to</strong> four years alone and<br />

incidences that have accord as a<br />

result, it doesn't even come close<br />

<strong>to</strong> incidences you have heard with<br />

the other flaws so <strong>to</strong> that extent."<br />

reported that the same pip<strong>el</strong>ine has<br />

been ruptured again by an<br />

explosion.<br />

A statement by its spokesman,<br />

Ndu Ughamadu, said the fresh<br />

incidence occurred along<br />

Egbokodo-Omadino, in Warri<br />

South Local Government Area of<br />

D<strong>el</strong>ta State.<br />

NNPC said its Group Managing<br />

Direc<strong>to</strong>r, Dr. Maikanti Baru, has<br />

directed that repair works should<br />

be executed immediat<strong>el</strong>y on the<br />

pip<strong>el</strong>ine.<br />

Eni sees East<br />

Med as key <strong>to</strong><br />

diversifying<br />

Europe’s gas<br />

imports<br />

G<br />

AS projects in east<br />

Mediterranean<br />

countries such as Egypt,<br />

Cyprus and Isra<strong>el</strong> will be key<br />

<strong>to</strong> h<strong>el</strong>p Europe diversify its gas<br />

imports as output in the <strong>No</strong>rth<br />

Sea is dropping and Russian<br />

supplies are rising.<br />

The Chief Executive Officer,<br />

Eni, Claudio Descalzi said<br />

Egypt could play the most<br />

crucial role in gas exports<br />

thanks <strong>to</strong> existing infrastructure<br />

and could become a hub<br />

shipping as much as 20 billion<br />

cubic metres of gas annually in<br />

a few years.<br />

He also said Eni wanted <strong>to</strong><br />

expand in Algeria, including<br />

offshore fi<strong>el</strong>ds, while fi<strong>el</strong>d<br />

dev<strong>el</strong>opment terms needed <strong>to</strong><br />

improve in Iran for the<br />

company <strong>to</strong> be lured back.<br />

Eni S.p.A. is an Italian<br />

multinational oil and gas<br />

company headquartered in<br />

Rome. the company has<br />

operations in 79 countries<br />

across the world.

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