The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has said that the major challenge now facing the power sector is that of transmission, insisting that gas supply to power generating companies (Gencos), has significantly improved.
Speaking during the 2021 budget defence and performance appraisal meeting, lawmakers at the National Assembly Complex, Abuja, attributed the success of the corporation in the gas sector to the support and cooperation of the corresponding committees and the entire legislature.
Represented by the chief operating officer, gas and power, Mr Yusuf Usman, the NNPC boss said gas supply to power had improved to a large measure, which he said was evident in the improved power supply currently being witnessed in the country.
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“We have significant gas in the network currently, but the challenge however, is transmission,” the Kyari stated.
On the AKK pipeline project, the NNPC boss told the lawmakers that it was designed to supply 2 billion cubic feet of gas per day (2bcfd), stressing that it would be the primary source of gas for the power plants currently being developed in Abuja, Kaduna and Kano.
The Senate committee on gas commended the national oil company on the various gas development projects it had undertaken, especially the Ajaokuta – Kaduna – Kano (AKK) gas pipeline project.
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Chairman of the Committee, Senator James Manager, reportedly expressed satisfaction with the various gas development projects embarked upon by the NNPC despite the impact of COVID-19 on the oil and gas industry.
Manager said the interaction between the committee and the national oil company would have been more frequent but for the lockdown due to the COVID-19 pandemic.
He reassured the corporation that his committee would undertake an oversight visit to the projects for proper assessment soon.
A member of the committee, who is also the immediate past chairman, Senator Albert Akpan Bassey, lauded the NNPC for publishing the 2018 and 2019 Audited Financial Statements (AFS) and for reducing losses by over 95 per cent.
“I want to commend the team led by the present GMD, a team of dedicated and passionate Nigerians. If they can reduce losses drastically within such a short time, we need to give them our support.”
Chibisi Ohakah, Abuja