Latest Fashola Fumes As Vandals Attack Nigeria’s Gas Pipeline

Nigeria’s minister of power, works and
housing, Babatunde Fashola has expressed dissatisfaction at the attack
on the country’s gas pipeline by suspected vandals over the weekend.

Minister of Power, works and housing, Babatunde Fashola

Militants attacked Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos.

Commenting on the attack, Fashola who spoke via a statement signed by
his media aide and made available to our reporter said the attack will
impact negatively on the Olorunsogo NIPP plant (capacity 600MW), and
other Power Plants .

“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,” Fashola said.

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“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.”

Fashola said the 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.

He added that 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
incident.”

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It would be recalled that during the monthly meeting of the minister
of power, works and housing, Mr Babatunde Fashola SAN 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 of 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.

In response to this, NNPC is forming a committee NNPC, Police, JTF
(which includes Army, Airfoce and Navy) and also community vigilante
groups, who have been tasked with the responsibility of securing these
pipelines.

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