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Power outages: NNPC intervenes to raise gas supply to GenCos

The Transmission Company of Nigeria (TCN)
The Transmission Company of Nigeria (TCN)

The Transmission Company of Nigeria (TCN) has confirmed that the Nigerian National Petroleum Corporation (NNPC) is helping to ensure improved gas supply to electricity Generation Companies (GenCos) as the latter contends with supply-induced generation hiccups.

A statement issued by TCN spokesperson, Ndidi Mbah , indicated that Group Managing Director of NNPC, Mele Kyari and the Chief Operating Officer, Gas and Power and NNPC, Yusuf Usman were making efforts to improve gas supply to gas-powered GenCos nationwide.

She stated: “Consequently, power plants previously experiencing gas supply shortage have started generating power to the national grid and if the trend continues, the problem of gas supply to power plants will be resolved in a matter of hours.

“Distribution Companies (DisCos) as well as point load consumers of electricity will be adequately served”, Mbah added.

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TCN Managing Director, Usman Gur Mohammed commended the NNPC, GenCos, DisCos, TCN staff and other power sector players for sustaining power supply through the national grid during this trying period.

Meanwhile, the Association of Power Generating Companies (APGC) said the gas suppliers were insisting on upfront payment to supply gas to its members, a condition which it describes as difficult meet now.

The association, in a statement by its Executive Secretary, Dr. Joy Ogaji, linked the cause of the gas shortage “gas suppliers demand upfront payment (pre-payment) before they make gas available and the GenCos cannot afford to meet this request given the liquidity issues in the industry.”

The GenCos want the Ministry of Petroleum Resources and the NNPC to develop novel approaches in making gas available to GenCos.

While pledging to support the government amidst the COVID-19 pandemic, APGC lauded the government for exempting power entities from the restrictions during the lock-down which it said is yielding results.

“This is evidenced in the increase in power generation which has averaged 4,024 megawatts (MW) since the index case was recorded on 27th of February 2020”, it stated. The APGC also said the GenCos were prepared for emergencies like the pandemic as they can ramp up to over 7,500MW with installed capacity of over 13,000MW.

It would be recalled that Daily Trust had reported on Tuesday that four GenCos closed for business recently while over 10 others reduced their power generation due to gas shortage.

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