The attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos in Delta State will impact negatively on the Olorunsogo NIPP plant, with 600MW capacity and other Power Plants, the Ministry of Power, Works and Housing has said.
In a statement by the spokesman for the Minister, Hakeem Bello, the Ministry said that “the sabotaged gas pipeline, which contributes to the Escravos Lagos Pipeline System (ELPS) has led to a loss of 160 million standard cubic feet per day of gas”.
Breakdown Of Effect
Giving a breakdown of the effect of the attack, the Ministry said: “At a cost of $2.50 per thousand scf, this loss means about $400,000 loss to the country on a daily basis (N78,800,000 daily) in gas volume.
“This is in addition to losses to be incurred daily from affected Power generation ($1,988,223 or N391,680,000 daily). The total daily loss to the country is therefore estimated at N470,479,931.
“Repairs of the damaged pipeline is estimated as costing ($609,137 or N120,000.000)”.
The Ministry further stated that the real sector of the economy had also been counting its losses, as some cement companies around Olorunsogo like Ewekoro and Ibese were also affected.
“The latest incident has occurred just as the Federal Government through the Ministry of Power, Works and Housing and the Ministry of Petroleum Resources along with allied agencies has been making concerted efforts to improve gas supplies to the Power Plants.
“Such efforts led to previously offline plants like Ihovbor and Sapele coming back online and the subsequent output making up for the loss in power. The pipelines are being actively monitored for further attacks or other unforeseen impacts,” the statement further read.
According to the Ministry, available records show that six incidences of vandalism from December 2014 to February 2015, which affected the Trans Forcados Pipeline at Oben, Sapele, Oredo and Escravos Lagos Pipeline System (CNL), led to a loss of 1,100 Million standard cubic feet per day of gas.
According to industry experts, a loss of 200 Million standard cubic feet per day of gas is equivalent to a Power reduction of 700MW.
The industry is currently generating about 4120Mwh/h on average, as at January 17, a performance the Ministry claimed would have been better without the additional setback caused by weekend’s incident.
At a meeting last week between the Minister of Power, Works and Housing, Mr Babatunde Fashola and the operators in the Power Sector – the Nigeria Gas Company , the Nigerian National Petroleum Corporation (NNPC) and the GACN – led by the Minister of State of Petroleum, Dr Ibe Kachikwu shared information on significant gas projects that would improve gas supply.
Dr Kachukwu had pointed out that the projects were scheduled for completion in the second quarter of 2016 and also highlighted some of the challenges especially related to security affecting delivery of gas to the power sector.
In response to this, the NNPC is forming a committee NNPC, Police, JTF – Army, Air Force and Navy – and also community vigilante groups, who have been tasked with the responsibility of securing these pipelines.