Nigeria’s power sector would begin to generate more electricity as the Nigerian National Petroleum Corporation (NNPC) and Total E&P Nigeria Limited (TEPNG) joint venture begins gas supply to the Alaoji Power Plant owned by the Niger Delta Power Holding Company (NDPHC) within the Eastern Grid Domestic Gas market.
Poor gas supply to power generation stations prompted by militant attacks and poor water management has been identified as the major impediment to power generation in the recent past.
The gas supply follows the completion and start-up of the Obite-Ubeta-Rumuji pipeline, O-U-R, and the Northern Option Pipeline, NOPL, Projects by the NNPC/TEPNG Joint Venture in August 2016.
The O-U-R Pipeline is a 42-inch gas pipeline, extending 45 km from Obite to Rumuji in Rivers State and will transport both domestic and export gas.
The NOPL project consists of a 50km, 24-inch gas pipeline (together with two above ground installations) which starts at the Oil Mining Lease (OML) 58 in Rivers State and ends at the Owaza node in Abia State.
The NOPL has the capacity to provide up to 300 million cubic feet of gas to the Eastern Grid Domestic Gas market, with Alaoji Power Plant taking up to 100MMscf/d to generate electricity while other users of domestic gas take up the rest.
According to the Managing Director/Chief Executive, Total E&P Nigeria Limited, Nicolas Terraz, “The completion of these pipelines is an important milestone in the activities of Total in Nigeria. The NOPL is unique and strategic in meeting the Federal Government’s objectives of gas supply to the domestic market.”
These two critical gas infrastructures are part of the ambitious OML 58 Upgrade initiative to increase oil and gas production, improve the integrity of the facilities and eliminate flaring from the mature onshore field.
The Projects recorded remarkable achievements in terms of Nigerian Content Development, providing training and capacity for Nigerian youths in specialised skills and stimulating the local economy through the numerous contracts and employment opportunities created during and after the phase of the project.
In addition, the projects have provided sustainable community development projects in the crucial areas of clean water and health care support infrastructure, roads, agriculture and small & medium enterprises.