Page 9 - DMEA Week 34 2021

DMEA POLICY DMEA

PIB to make more gas available

to Nigeria’s power sector

AFRICA AFRICAN Energy, an independent research major gas pipeline projects,” the research asso-
association, has said that the newly adopted ciation wrote.
Petroleum Industry Bill (PIB) is likely to make “Combined, these may break down some of
more natural and associated gas available for the major barriers for new Independent Power
domestic thermal power plants (TPPs). Plants (IPPs).”
In a recently published report on the Nige- It went on to say that it expected gas to
rian power sector, African Energy noted that the become the primary fuel for electricity produc-
federal government’s efforts to promote gas-fired tion in Nigeria. “Gas supply will be crucial. Gas
electricity production were progressing more will continue to fuel Nigeria’s power sector for
slowly than expected. many years to come, while oil continues to play a
As a result, Nigeria is likely to see the installed key role in the country’s economy,” it said.
capacity of gas-fired TPPs reach 18,300 MW by The report also noted that Nigeria did not
2025, but only 7,600 MW, or less than half of total currently have the generating capacity or the
capacity, will be available for generation. transmission and distribution infrastructure
This gap is already present and will grow needed to meet current demand for electricity.
wider over the next few years because the coun- This could change if the government moves
try’s gas supply systems are not adequate to meet ahead with plans for liberalising the energy
demand, it explained. industry by re-tendering of state-owned
It also stressed, though, that conditions were National Integrated Power Projects (NIPPs) and
set to improve in the long term as the result of the privatising Transmission Company of Nigeria
government’s passage of the PIB. (TCN), the national power provider, it said.
“The passing of the Petroleum Industry Bill It also drew attention to Abuja’s consideration
(PIB) will provide much-needed clarity for the of proposal for franchising power distribution
sector and could unlock new gas supply to the systems and for promoting the development of
domestic market, as will the construction of mini-grids.™

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