The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke has committed to an aggressive and robust implementation of the various initiatives designed to accelerate the provision of adequate gas supply for power generation in line with the Federal Government’s aspiration for the power sector.
Diezani Alison-madueke who recently announced the N213bn inter-agency initiative to facilitate the liquidation of legacy gas debts in the power sector stated that the Nigerian National Petroleum Corporation alongside its Joint Venture Partners are determined to surpass its mandate of providing the required fuel gas as well as gas infrastructure for the smooth operation of power plants in the country.
On gas supply to the upcoming Azura-Edo Power plant in Ihovbor/Orior Osemwende Communities near Benin City whose foundation laying ceremony was performed by President Goodluck Jonathan over the weekend, Mrs. Alison-Madueke informed that the 450mw IPP would be supplied with 120mmscuf/per day through the Nigerian Petroleum Development Company, NPDC and the Seplat Petroleum Development Company PLC, Joint Venture from its new gas processing facilities at the Oben Gas Plant.
To develop and deliver gas to the project, the Minister said the Joint venture would be investing approximately $200m.
“The Nigerian Gas Company would be providing gas transportation to the power plant using the 50 km stretch of the Escravos Lagos Pipeline Spectrum ’’ she said.
Mrs. Alison-Madueke noted that Azura-Edo power plant gas transaction is a pioneer in the two tier gas pricing arrangement as proposed in the gas Master Plan which envisions a willing buyer-willing seller pricing.
She further stated that Azura and Seplat exemplify the success stories of this administration in the power and oil and gas sectors.
The Minister pledged to sustain the existing unprecedented synergy among the Ministry of Petroleum Resources, Power and the Central Bank of Nigeria in ensuring a strong alignment in power outputs and the requisite gas supply.
“It is our expectation that the aggressive implementation, progressively over the next few months would ensure that this particular collaboration brings continuous and sustainable improvement and stability in the power sector,‘’ the minister stated.