Released March 26, 2015 | JOHANNESBURG
en
Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--According to studies conducted by the Nigerian National Petroleum Corporation (NNPC), 90% of businesses in Nigeria rely on back-up generation for about 60% of their power needs. Nigerian households and businesses generate some 2,500 megawatts (MW) of electricity from petrol, kerosene and automotive gas oil (AGO), popularly known as diesel.
Speaking at a special session at the recent Nigerian Oil and Gas conference in the capital Abuja, NNPC Executive Director David Ige said the national power supply shortage restrains economic growth and industry competitiveness. He added that gas-to-power, or the lack of it, was a recurring theme in the annual conference.
"Therefore, increasing power supply clearly will unlock GDP [gross domestic product] growth and create jobs," Ige said. "It is estimated that the direct impact of closing the power gap we have today is well over $11 billion, and the indirect impact is significantly more than that, with the additional benefit of over 1 million jobs a year. So, this challenge of power outage needs to be overcome."
In addition to the 3,500 MW of grid power supply, 2,500 MW is generated through back-up power. Nigerians consume about 11 million liters of diesel a day.
"Our estimate is that 50% to 60% of that diesel goes to power generation and the balance into trucking," Ige said. "If you estimate that in terms of megawatts, it translates to close to 1,000 MW from diesel generation."
Ige said the NNPC has performed similar studies on petrol, showing that 20% of the 40 million liters of daily consumption of petrol is used for 800 MW of power generation. Many people use kerosene, mostly for lighting and cooking, which provides about 500 MW. He noted that the gas and power sector in the last two years has been going through significant reforms. However, gas supply has been a bottleneck in the efforts to ensure reliable power supply. The secure and adequate supply of gas requires a reformed gas sector.
Minister of Power Chinedu Nebo said gas accounted for 80% of power generation on the grid, while hydropower accounted for 20% . He added there is enough gas available to give Nigeria 5,500 MW of electricity if the supply pipelines are not vandalized.
For related information, see November 20, 2014, article - Gas Supply Failure Stalls Private Investment in Nigerian Power Plants and October 28, 2014, article - Nigeria Spends $4.8 Billion on Private Generator Fuel, Looks to Renewables.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Speaking at a special session at the recent Nigerian Oil and Gas conference in the capital Abuja, NNPC Executive Director David Ige said the national power supply shortage restrains economic growth and industry competitiveness. He added that gas-to-power, or the lack of it, was a recurring theme in the annual conference.
"Therefore, increasing power supply clearly will unlock GDP [gross domestic product] growth and create jobs," Ige said. "It is estimated that the direct impact of closing the power gap we have today is well over $11 billion, and the indirect impact is significantly more than that, with the additional benefit of over 1 million jobs a year. So, this challenge of power outage needs to be overcome."
In addition to the 3,500 MW of grid power supply, 2,500 MW is generated through back-up power. Nigerians consume about 11 million liters of diesel a day.
"Our estimate is that 50% to 60% of that diesel goes to power generation and the balance into trucking," Ige said. "If you estimate that in terms of megawatts, it translates to close to 1,000 MW from diesel generation."
Ige said the NNPC has performed similar studies on petrol, showing that 20% of the 40 million liters of daily consumption of petrol is used for 800 MW of power generation. Many people use kerosene, mostly for lighting and cooking, which provides about 500 MW. He noted that the gas and power sector in the last two years has been going through significant reforms. However, gas supply has been a bottleneck in the efforts to ensure reliable power supply. The secure and adequate supply of gas requires a reformed gas sector.
Minister of Power Chinedu Nebo said gas accounted for 80% of power generation on the grid, while hydropower accounted for 20% . He added there is enough gas available to give Nigeria 5,500 MW of electricity if the supply pipelines are not vandalized.
For related information, see November 20, 2014, article - Gas Supply Failure Stalls Private Investment in Nigerian Power Plants and October 28, 2014, article - Nigeria Spends $4.8 Billion on Private Generator Fuel, Looks to Renewables.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
