Recent attacks on major oil pipelines in Warri area of Delta State by suspected Niger Delta militants have led to the loss of about 1000megawatts of electricity generated by gas, the Senate said yesterday.
The upper legislative chamber, which condemned in totality the fresh uprising and blowing up of pipelines in the Niger Delta region, also lamented that such action would have negative effect on government’s plan to end fuel scarcity in the country.
The Senate, through its Committees on Gas, Downstream, Upstream Petroleum, respectively, therefore, urged Nigerians to appeal to the militants to stop such act of national economic sabotage.
Led by the Chairman, Senate Committee on Petroleum (Upstream), Senator Tayo Alasoadura (APC Ondo Central), the Upper House condemned the unpatriotic act of some vandals who have decided to blow up pipelines at this time of national emergency when the dwindling price of oil and the insurgency in the North East was confronting our nation.
Alasoadura said: “It is very disheartening that at a time when all hands should be on deck to revive the economy and ensure the survival of the country some people could decide at this point to further sabotage the efforts of the present administration to bring some sanity into our country.”
According to him, this sabotage has led to the shutting down of the two refineries that had just started working in few months, saying they should give respite to Nigerians so that we can see some governance.
“It is not good enough for an administration to be fighting one war there and they are waging another; when will he have time to govern?
So, please help us appeal to them so that Nigeria can move forward”, he added
He appealed to the militants to stop this mindless act by giving Nigerians the respite to allow this present administration to stem the tide of poverty and want ravaging our people.
Also speaking, Chairman Senate Committee on Gas, Senator Albert Bassey said the explosion had affected the major gas pipelines in the country.
He informed that “the committee on gas had invited the Nigerian National Petroleum Corporation, NNPC and the Nigerian Gas Company, NGC and they have made us to understand that the country will be losing over 200 million score of cubic feet of gas on a daily basis which is equivalent to 1000 megawatts of electricity”.
“This is the gas terminal that supplies Egbin and most of the NIPP (Nigeria Integrated Power Project) along the South Western region of this country.
“In a period where we are grappling with the challenges of domestic gas supply, we believe very strongly that it should be condemned”, he said.
FG loses N470m to gas pipeline daily attacks Meanwhile, the Federal has disclosed that security agencies are intensifying the search for culprits behind attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos, weekend.
A statement signed by special adviser, Communications to the Minister of Works Housing and Power Hakeem Bello explained that the attack will will impact negatively on the Olorunsogo NIPP plant capacity 600MW and other power plants .
He said that the sabotaged gas pipeline which contributes to the Escravos Lagos Pipeline System ELPS has led to a loss of 160mmsfcd of gas daily. 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 real sector of the economy has also been counting its losses as some cement companies around Olorunsogo like Ewekoro and Ibese are 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.
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 MMScfd. According to industry experts, a loss of 200 MMscd is equivalent to a Power reduction of 700MW. While the industry is currently generating about 4120Mwh/h on average as at 17/01/2016, it is without doubt that performance would have been better without the additional setback caused by the weekend’s attack.
It would be recalled that during the monthly meeting of the Minister of Power, Works and Housing, Mr Fashola with operators in the power sector last week, the Nigeria Gas Company, NGC, the Nigerian National Petroleum Corporation, NNPC and the GACN led by the Minister of State for Petroleum, Dr Ibe Kachikwu, shared information on significant gas projects that will improve gas supply which are scheduled for completion in Q2 of 2016 and also highlighted some of the challenges especially related to security affecting delivery of gas to the power sector.

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