Govt gives $1b to boost gas supply
Gas supply has got a $1billion boost, in the country, with the Federal Government approving the cash for the Niger Delta Power Holding Company (NDPHC). It is all in a bid to push up electricity generation.
NDPHC Managing Director James Olotu broke the news at the end of a meeting chaired by Vice President Namadi Sambo at the State House, Abuja.
He noted that there was still a shortfall in the gas sector despite the concerted efforts by the government to address the issue.
He said: “The board of the Niger Delta Power Holding Company therefore met Friday and looked at additional strategies in which government again can move the sector forward. One of such strategies is to commit some funds out of the expectations from the sale of power holding companies towards partnering with the private sector again in developing some hollow walls, identified certain portions where they have been proven gas availability.
“This programme promises to unlock gas from these locations within a short time and then complement efforts currently being done by the Petroleum Ministry to ensure that we close the gap between gas requirement and gas supply. The sum of $1 billion out of the funds of NDPHC is being put on the ground to support this iniative and this will involve a lot of private sector investors who will be willing to partner and get this gas supply enhanced.”
“The petroleum ministry is agreeable to this and is supporting the entire programme, the ministry of power, finance are also in the picture. And so we hope that gas supply will become a thing of the past very soon. Then maybe we can begin to have more megawatts.” Olotu added
The thinking is that since some power plants have been built, adequate gas supplies will enhance their performance and result in better electricity.
The Permanent Secretary, Power Ministry, Godknows Igali, said the ministers of Power and Petroleum, Central Bank of Nigeria (CBN) Governor and chairman of National Electricity Regulatory Commission (NERC) met at the weekend on resolving the shortfall in gas supply.
“Today’s meeting is on a higher level, chaired by the Vice President during which the vision of the Niger Delta Power Holding Company, which is already playing a critical role in the power sector, especially in the development of the NIPP power plant, and also now going to make further investment in the sector, plans towards ensuring gas is available to these plants.”