The Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, has pledged commitment for the implementation of initiatives designed to accelerate adequate gas supply for power generation.
This is contained in a statement signed by the Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation (NNPC), Mr Ohi Alegbe in Abuja.
The statement quoted the minister as making this commitment when she announced the N213billion inter-agency initiative to facilitate the liquidation of legacy gas debts in the power sector recently.
The minister said that the NNPC alongside its Joint Venture Partners were determined to surpass its mandate of providing the required fuel gas as well as gas infrastructure for the smooth operation of power plants in the country.
She assured that the 450 megawatts Azura-Edo Power plant recently inaugurated by President Goodluck Jonathan in Ihovbor/Orior Osemwende communities would be supplied with sufficient gas.
She said that the 450 mw Independent Power Plant would be supplied with 120mmscuf/per day through the Nigerian Petroleum Development Company (NPDC) and the Seplat Petroleum Development Company Plc Joint Venture.
The minister said that the plant would be supplied from the new gas processing facilities at the Oben Gas Plant.
She said that the joint venture would be investing approximately 200 million dollars to develop and deliver gas to the project.
“The Nigerian Gas Company will be providing gas transportation to the power plant using the 50 km stretch of the Escravos Lagos Pipeline Spectrum, ’’ she said.
Alison-Madueke noted that Azura-Edo power plant gas transaction was a pioneer in the two-tier gas pricing arrangement as proposed in the gas Master Plan which envisions “a willing-buyer-willing seller pricing’’.
She stressed that Azura and Seplat exemplify the success stories of this administration in the power, oil and gas sectors.
She pledged to sustain the existing synergy among the Ministries of Petroleum Resources, Power and the Central Bank of Nigeria in ensuring a strong alignment in power outputs.
“It is our expectation that the aggressive implementation, progressively over the next few months would ensure that this particular collaboration brings continuous and sustainable improvement and stability in the power sector,” she said.