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Friday, 11/02/2007 1:55:20 AM

Friday, November 02, 2007 1:55:20 AM

Post# of 360881
Gas Shortage: Nationwide Blackout Looms
By Chika Amanze-Nwachuku, 11.01.2007

Egbin Power Station Shut

Indications emerged last night that the current shortage in power supply being witnessed in parts of the country since last week, may soon result in a total black out, as the Nigeria Gas Company (NGC) has shut down gas supply to Egbin, Delta and Geregu Thermal Power Stations.
Consequently, the Egbin Thermal Station with the capacity to generate 1,320MW of electricity has been completely shut down resulting in the loss of 800 MW. The gas powered stations depend on the gas company as their source of gas supply.
Power outages resurfaced in parts of the country since mid October, when the Utorogu Gas Plant belonging to the Shell Petroleum Development Company (SPDC) was shut down following the fire that gutted the 10-inch Utorogu-Ughelli Pumping Station condensate trunkline.
The fire incident which was said to have been caused by Niger Delta youths had resulted in the deferment of some 300 million standard cubic feet of gas.
However, the fire was put out a few days after by the oil giant, which also carried out a repair work on the condensate trunkline.
Soon after the repair, the company was said to have discovered that there were still some leakages, a development which forced it to again shut down the gas plant, which also supplies gas to the power plants.
A Shell source confirmed yesterday that the oil giant is yet to lift the Force Majeure which it declared on gas supplies to the national grid in the wake of the fire incident. Force majeure is a legal condition which protects a company from not meeting contractual delivery obligations.
“The line was repaired shortly after the incident. But when we discovered these new leakages, we were forced to shut down the gas plant again. The line is in swampy area and a lot of logistics need to be put together to do the work.
“We are working round the clock to bring the line back. The 300mscf of gas is still deferred and the force majeure is still in force” the SPDC source said. The shut down of the Utorogu gas plant, which culminated in the shut down of gas to the thermal stations and eventual shut down of the Egbin power station has been criticized by the Power Holding Company of Nigeria, which often blamed its woes on frequent shut down of gas supply to the power stations by the gas company.
Reacting to the recent development in a statement to THISDAY last night, the power company explained that the shut fall in gas supply to the power stations which started on October 15, led to generation limitations thereby giving rise to the on-going load shedding.
“The Management of the Power Holding Company of Nigeria Plc (PHCN) regrets the inconveniences being experienced presently by its customers nationwide.
The shortfall in gas supply to Egbin, Delta and Geregu thermal power stations by the Nigeria Gas Company (NGC) which started on 15th October, 2007 led to generation limitation thereby giving rise to the on-going load shedding.“This has resulted to a total shut down of Egbin Power Station with the loss of 800MW. While we are sensitive to the plight of our customers, we wish to reiterate that the prevailing situation is due to factors beyond our control. Meanwhile, we appeal to our esteemed customers to please bear with us at this critical period and we assure that power supply will improve as soon as gas supply from the Nigeria Gas Company is restored” the PHCN said in a statement.Nigerians have been groaning in darkness notwithstanding the huge amount of money invested in the power sector by successive governments. President Umaru Musa Yar’Adua who was said to have not been impressed by the performance had threatened to declare a state of emergence in the sector. The Federal Government had a few days ago categorically stated that it lacks the funds to revamp the energy sector , although it hopes to partner with investors to turn things around. A step in that direction was a recent meeting with German Government on how the foreign experts could help revamp the energy sector.