BTW. . . one key reason why I'm suggesting that whoever buys Eko, Ikeja and Enugu consider buying directly from power plants. . . well, it looks like TCNs capacity isn't even enough.

Imagine that you buy Eko and Ikeja right now. The demand for electricity in Lagos is probably north of 10 GW. But TCN cannot deliver 10 GW to you. . . their total capacity is much less than that. Like 7 GW for the entire country, or something like that.

This means that their inability to deliver is costing you money. So it makes a lot of sense to see if you can get to the 10 GW demand by buying electricity from someone else (the power plants directly.)

Abiodun234:

@Marjo
Challenges facing renewable energy in Nigeria:
-Initial investment  for renewable energy system are quite high, hence the government needs to provide incentives such as subsidy, tax exemption, feed-in-tariffs etc. to encourage investment in such systems. At the moment there are no policies for renewable energy systems on ground, all we have is a road map written in 2006 with no execution talk less of incentives.
-Renewable energy systems require adaptation to the environment in question. We just go  to China import and install without considering the engineering and environmental requirements. This is the reason why most of the solar powered street light fails after 3 months of installation. There is no support for R&.
-Nigeria is a gas producing nation, we have gas in abundant which we just flare, in fact I read an article in the London times (I think)  sometimes ago, it was said the amount of gas flared in Nigeria is capable of providing 3 times the electricity needs of Germany. 
-Above all, lack of political will because I believe the government have access to experts in this fields.

With more than half of Nigerians not connected to the national grid we definitely can’t afford to ignore power generation from renewable energy sources because they are capable of providing power at the point of need hence no need to the Transmission/grid investment. The duration of setting up renewable power plants are also shorter hence they could help meet immediate power requirements and they provide more jobs per electricity generated.

@ekt bear
The discos can not by-pass TCN because:
-The distribution network is not designed to handle large amount of power, they are very lossy. This is because they are designed to operate at medium and low voltage level.
-The power station generates power at a different voltage from what is required by the distribution network hence the needs for sub-stations. If the Disco and generating company decides to by-pass TCN they will be required to construct substations of their own.
-The law does not permit it.
-Security and redundancy issues:  if TCN is removed out of the equation, there is a possibility for the distributing company and the generating company to form a merger or acquire each other hence, creating a monopolised system. In situation whereby a major power plants fails or is shut down intentionally, there is a need to get power from other generating stations outside you environment.

Actually there are a lot is misinformation in the above response. Power can be generated and distributed in a localized area. A transmission grid is an expensive and wasteful middleman. It is only useful if you intend to transmit over long distances in which case you step up the voltage to minimize current losses. Since power equals the square of the current times the impedance. In this case, the transmission line has its own line impedance.

Power is generated and consumed in the US and Germany in a decentralized ring-bus format. For example, in NYC, Con Edison generates power within NYC (a fraction), buys the rest from Niagara Mohawk or NYPA (both Gencos) and then distributes.

Power is supplied to Bonny in Nigeria by the Bonny Utility Company. (BUC). They generate and distribute power locally and there you have 24-hr power. The same happens in Jos where you have NESCO generating and distributing. These are the only places in Nigeria where you will find 24-hr grid electricity. This happens because you have the same company control all aspects of the power system and not an inefficient government run middleman.

A transmission grid will however be needed in times of high demand that the local utility cannot meet. Then they would have to import from distant power producers over the grid at higher cost. This is a major reason why utility bills in the West tend to go up in the summer. Utilities incur extra expenses importing power to meet extra demand and they penalize you for that.

For the record, power is generated at distribution voltage (13kV and below) and then stepped up to transmission voltage (133kV in Nigeria and 345kV in the US) so as to wheel power with minimal losses (ideally 6%) to distant cities that need the power. This is if the power is generated far from where it is needed. In the case where the power can be generated close to where it is used, a transmission grid is unnecessary.

^-- yep, we had this convo some time ago. I didn't realize what a weak link TCN at the time

@lottery

You will need to transmit a little bit, nobody is going to site a generating plant in the middle of the marina or in VI, the generating station will be some kilometers away and for you to move it down to where it is needed you will transmit, of course it is easier to site in Ikorodu and transmit to Epe and other parts of Lagos, the FG can not be serious about power supply when GEJ is frolicking with Otedola.

House, FG is truely serious. I'm in power sector and my company alone is handling about 4 IPP and direct FG power projects.Yet many other companies are still involved.

@kalokalo, in addition to those 2 places you mentioned, there is also very high power availability in Forcados area, Eket,  Ajaokuta, etc. The Afam power plant will also provide a similar service. The thing these places have in common is that they host key energy installations. They prove that we can achieve 100% power in Nigeria. I strongly support  the localized generation / consumption option aka modular power system, but we also need large transmission grids and interconnection systems. They work hand in hand and we should develop all the options together.

@All

I am very sorry for this misinformations:

-The law does not permit it.

Section 26(1) sub-section ( I,II,III) of the Electric power sector reform act of 2005 allows the distribution company to buy electric  power  from the independent power generating company, the transmission company in this case TCN or another generating company.

there is a possibility for the distributing company and the generating company to form a merger or acquire each other hence, creating a monopolised system.

Section 32(I) sub-section (d) of the Electric power sector reform act of 2005 empowers the Nigerian Electricity Regulatory commission (NERC) to carry out cost control hence, check Monopoly.

Once again am sorry, am a work in progress 

@ekt_bear: thanks for challenging my knowledge.
@Kalokalo

Actually there are a lot is misinformation in the above response.

Can you please point out other misinformation, it will help me update my knowledge. Cheers.
Are BUC and NESCO operated in commercial (selling electricity) scale? Because that changes a lot of things.

Theres really areas in nigeria with 24hr electricity?? Is it expensive? The electricity i mean?

@Abiodun234: No worries man, we are all here to learn. Thanks for the information.

Courtesy Playmode:

https://www.nairaland.com/nigeria/topic-666571.0.html#msg8313532

Lets hope it is novagin injection dis time not volume 5

Power distribution
By Agency Reporter
Tuesday, 17 May 2011


Vice-President Namadi Sambo on Monday gave indications that the Federal Government welcomed a proposal to involve the state governments in power distribution to enable them recoup their investments in the ongoing power projects.

As a result, the states could have shares in the incoming power companies.


A statement from the Senior Special Assistant to the Vice President on Media and Publicity, Umar Sani, explained that the plan to involve states in power distribution was proposed by the Rivers State Government.

River State Government raised the proposal in a bid to take-over the Rivers State Distribution Network of the power project.

The objective of the proposal was to create an embedded generation zone in Rivers State to feed off power generated at Omoku, Trans-Amadi, Eleme and Afam/Ban Ogoi power stations.

The statement said Sambo gave indications of the Federal Government’s favourable disposition to the plan to involve states in power distribution.


http://www.punchng.com/Articl.aspx?theartic=Art201105172521231

Nigeria secures fresh $20b investment pledge for power sector
Tuesday, 17 May 2011 00:00 By Roseline Okere Business Services - Business News

THE Federal Government has secured additional firm investment commitment of about $20.1 billion (N3.2 trillion) from investors across the globe, for the country’s power revival project.

Already, the World Bank had offered up to $400 million for this programme and the Central Bank of Nigeria is also providing N300 billion in credit facilities for investments in the power sector.

Specifically, according to a release from the Ministry of Power, United States of America (USA), United Kingdom (UK), and the government of India have made a total financial commitment of $100 million, while the Commonwealth Business Council has also pledged $20 billion.

The release disclosed that Brazil, the European Union and Islamic Development Bank have also signified their interest to partner with the Federal Government in its bid to provide uninterrupted power supply.

It added that the government has completed and commenced some solar projects in Ogun, Bauchi, Katsina and Cross River State.

On the nation’s power generation, the release stated: “Reliable power has been provided throughout the year. The average of the average peak monthly generation was 3208mw compared to 2009 at 2642mw. A difference of about 566mw per month or about a 21 per cent increase.

“Average of average peak monthly to date in 2011 is 3563mw. To date in 2011 the average of the average peak generation was 3426mw in January; 3419mw in February; 3624mw in March and in April to date, it is 3772mw. “The annual average on the bar figures in 2009 were 2975mw, in 2010 3431mw and to date in 2011 3888mw”.

The Bureau of Public Enterprises (BPE) had projected $35 billion yearly investment in the power sector over the next 10 years, for effective power supply.

The Director-General of BPE, Bolanle Onagoruwa said that the nation required such yearly investment over the next 10 years to meet the Vision 20-2020 target of 40,000 megawatts.

The BPE is expected to release the list of selected bidders for the 17 power firms being offered for sale by the Federal Government as part of the reform of the power sector in the next one week.

Onagoruwa said that bidders would be chosen for the 11 distribution firms based on their ability to reduce transmission losses in the network.

She said: “Under the proposed privatisation strategy for distribution companies, a private sector operator will acquire controlling equity interest in any of the distribution firms with a view to rapidly improving its operational efficiency.

“So, unlike the traditional transaction approach when bidders merely bid on price for the equity shares, bidders will bid on the basis of a trajectory of technical, commercial and collection loss improvements, usually during the first five years of post-privatisation operation (or other number of years agreed with the regulator and advisers).”

The BPE received 174 expressions of interest for the four thermal and two hydro power stations, and 157 for the 11 distribution firms, in which investors will be allowed to take stakes of up to 51 per cent.

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=48216:nigeria-secures-fresh-20b-investment-pledge-for-power-sector&catid=31:business&Itemid=562

His plan is workable. I just hope he is able to implement it

Onyekakeyah: IPPs: Need to meet set targets
Tuesday, 17 May 2011 00:00 By Luke Onyekakeyah Opinion - Columnists
 
RECENT media reports that technical hitches are threatening the realisation of the target set for the 1,074 megawatt Alaoji Independent Power Plant (IPP) in Aba, Abia State is unsettling. The development means that unless some urgent steps are taken to rectify whatever anomaly might have cropped up, the projections of the Jonathan administration to boost power supply based on the IPPs would be jeopardised. This should be avoided, as boosting power supply is a central thrust of this administration.

The IPPs, for now, form part of the strategic platform on which the Jonathan administration based its resolve to turn around the power sector. The other is the privatisation of the extant subsidiary companies of the Power Holding Company of Nigeria (PHCN), which is already in top gear. It would, therefore, be disappointing for the IPPs to be mismanaged, and thereby failing to meet the national expectation. Whatever should be done to ensure speedy and hitch-free completion and commissioning of the Alaoji IPP should be done. Nigerians are expecting nothing less than an improved power supply regime from the Jonathan administration.

Since the Jonathan administration has by word and action demonstrated its seriousness and determination to improve power supply in a manner distinct from what obtained in the past, it should take keener interest in what is happening on this front. Nigerians would be disappointed if at the end of the day nothing substantial is achieved like before. That shouldn’t be the take of this administration.

The Alaoji Power plant is one of the nine IPPs proposed for the country since the days of the Obasanjo administration, all in an attempt to boost power supply but without much success till date. Alaoji is the second biggest in the country after Egbin in Lagos State, which has installed capacity of 1,320 megawatt.

The others are Geregu, Kogi State (414 mw); Omotosho, Ondo State (335mw); Papalanto, Ogun State (335mw); Gbarian, Bayelsa (225mw); Ihovbor, Edo State (451mw); Egbema, Imo State (338mw); Calabar, Cross River State (561mw) and Ibom, Akwa Ibom (188mw). All these are supposed to be gas powered thermal plants. As a result, the availability and steady supply of gas is critical for their take off and efficient functioning.

It’s on this basis that the Nigeria National Petroleum Corporation (NNPC) awarded a N1.3 billion contract to an indigenous company for the laying of gas pipeline from the supply receptors in the Niger Delta to Alaoji. The contract was awarded in May 2010, and was scheduled for completion and commissioning in November, 2010. Unfortunately, six months after, the project has neither been completed nor ready for commissioning as earlier planned. This is the crux of the matter. What happened? What’s delaying the project commissioning?

According to reports, just at the time when the plant was already over due for commissioning, it was discovered that the gas pipelines being laid to Alaoji were not suitable for the plant. The contractor seems to have done a shoddy job. This development, the report added, may compel the NNPC to review the contract. The Guardian reported on Thursday, May 10 on its front-page that ‘the size and nature of the pipeline to transport gas to the plant cannot effectively convey the product because the pressure level is very low.”

Consequently, the workability of the pipeline has been put into question. For instance, it was reportedly discovered that whereas the ideal size of pipeline required for such a high-pressure facility is 24 inches, what has been laid instead were 18 inches pipeline that engineers of the Nigeria Gas Company (NGC), a subsidiary of the NNPC, have adjudged not workable. It simply means that Alaoji cannot come on stream now as earlier planned. There might be a delay of at least another six months before the issues are sorted out. This administration won’t achieve much through such lapses.

The NGC officials have categorically stated that, “it is technically not feasible for the new 18 inches pipeline, measuring 2.5 kilometers to carry gas efficiently from the existing 12 inches pipeline, which was built in the 1960s by Shell.”

[b]The extant pipeline, which are obsolete and of questionable integrity, were said to have been meant for transporting gas to manufacturing companies in Aba but not for a big power plant that requires a high pressure pipeline of 24 inches.

There are other controversies surrounding the project like the way and manner the contract was awarded without following due process but merely on the basis of a national emergency tag without competitive bidding. While this might constitute a breach of the contract awarding process in Nigeria, for me, that issue wouldn’t have arisen if the job had been completed on schedule satisfactorily.

The issue is that the contractor failed to deliver what is acceptable. If the Alaoji plant and indeed any of the IPPs were to be treated as a national emergency, with the objective of achieving quick result, so be it. Nigerians need improved power supply urgently. But problem arises when a supposedly national emergency is treated with levity after much hope and expectation have been placed on it.[/b]

[b]There are some pertinent questions that should be asked basing on the circumstances of the Alaoji project. For instance, is the NNPC the appropriate institution that should award the contract considering that there is a Presidential Task Force on Power that has the specific mandate of getting the electricity issue rolling? What role did the Task Force play? Why was the NGC, the officially recognised experts in gas technology, not carried along?

Furthermore, why was the contract elevated to the status of a national emergency when it was clear that it wasn’t going to be treated as such? A national emergency is something like a natural or man-made disaster that requires urgent mobilisation of available human and financial resources in order to achieve immediate remediation. If that were the case, why was the plant not handled with that urgency after it was given emergency status?

On the issue of appropriate sizing of the pipeline, why was the discovery made six months after the scheduled completion date? Were there no specifications in the contract on the size of pipeline that should be laid? If yes, why not? And if no, why? Also, were there no penalty clauses for failure to deliver on the part of the contractor?

It’s important to find out what went wrong to prevent recurrence. The people and the economy are suffering in this disgusting regime of national blackout. It’s not just enough for the NNPC to review the contract after it has contributed in frustrating the realisation of the target set for Alaoji. There should be sanctions where necessary.

President Jonathan had placed much confidence in the Alaoji Plant such that shortly after his inauguration in May, 2010, he paid an official visit to the plant as a way of underlining it importance. He had promised to ensure that Alaoji would be completed on schedule in order to have the over 1000 megawatt from the plant added to the national grid. The expectation was that by harnessing the 1,074 mw from the plant, there would be a boost in the electricity supply. Achieving that would boost the credibility of the administration and its Task Force on Power, which is working round the clock to make a difference.

Finally, it’s amazing that we’re talking of a shoddily done electric power project that doesn’t seem to have involved the Presidential Task Force on Power. A task force, by definition, is a group of people and resources put together to accomplish a particular mission. The mission in this case is to boost power supply in a shortest possible time using all the resources at its disposal.

President Jonathan has appointed an internationally recognised engineer in the person of Prof. Bart Nnaji as the head of the power supply task force. It would amount to double standards if the job the task force is supposed to do were still done through the laxity of the ministry and the NNPC. There should be visible difference arising from the action of the task force since it’s not going to be there forever.[/b]


http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=48208:onyekakeyah-ipps-need-to-meet-set-targets-&catid=38:columnists&Itemid=615

PHCN workers oppose privatisation in power sector
May 16, 2011


The National Union of Electricity Workers says that privatization will not work in the power sector and should not be federal government's option for a way forward in power sector reforms.

This statement which was made by the secretary of the union, Joe Ajaero, is coming on the heels of fresh negotiations between the Federal Government and the workers union of the Power Holding Company of Nigeria.

Mr Ajaero said all the federal government has done in past years with its privatization projects in different sectors is to sack workers, whereas the privatized industries are left dysfunctional.

He said the PHCN workers cannot be blamed for the failure in the sector but rather the many abandoned projects and the contractors that were paid to do them.

The leader of the government's delegation, Alhaji Hassan Sumonu said the recommenced negotiation will look at previous negotiations, negotiate outstanding issues between both parties and set a way forward for the smooth takeover of the power sector reform.

It could be recalled that the electricity unions has earlier stifled attempts by the federal government to finalise the privatisation arrangement with threats to embark on an industrial strike.

The national body of the NUEE and that of the Senior Staff Association of Electricity and Allied Companies (SSAEAC) issued an ultimatum for government to suspend further action on privatisation of PHCN until all outstanding labour issues are resolved.

Part of the demand by the unions are, among others things, for the management of PHCN to pay up the balance of the negotiated 150 per cent salary increase as well as regularise the employment of over 10,000 casual workers in the corporation.

http://channelstv.com/global/news_details.php?nid=27135&cat=Local

Can you imagine!!!

In London, if you want to clean the windows of a school, you will have undertaken a government approved course in window cleaning, health and safety auditing, a full background and credit check and a PQQ assessment. All in all it will probably take a good 6 months for a brand new company to receive sufficient authorization and approval to clean the windows of a school which you probably wont be paid more than 100 pounds for! Now compare that to a company laying A WHOLE GAS PIPELINE and being paid 1.3 billion naira for it doing a shoddy job?

me thinks we need a complete reform of this government and its habits of awarding contracts.

Electricity workers want Elumelu panel’s report
Wednesday, 18 May 2011 00:00 From Emeka Anuforo, Abuja Business Services - Business News

THE celebrated but controversial Ndudi Elumelu House of Representatives power committee report assumed to have been dumped, may be stalking its way back to prominence again.

Reason: The nation’s electricity workers have given a revisit to the report as a condition for a renewed negotiation with the Federal Government over the on-going electricity sector reform programme.

The workers, who had a protracted meeting with the chief negotiator and coordinator between the government and the Power Holding Company of Nigeria (PHCN) Labour Unions, Comrade Hassan Sunmonu, insisted that unless the reports of Ndudi Elumelu power committee of the House of Representative is revisited, they would not resume negotiation with the government on the programme.

But Sunmonu called on the parties in the negotiation, to put Nigeria first in putting forward their positions.

“Power sector is the most sensitive and the most important in the economy. If we get it right in the power sector, then the path to Nigeria’s economic development and prosperity and for the benefit of the people and the government will be secure.

“However, if we get it wrong, the other countries in the West Africa sub-region which got their power sector right would be selling their manufactured goods to the Nigerian market.”

In a chat with journalists after the meeting between the negotiator and the house unions, General Secretary of National Union of Electricity Employees (NUEE), Joe Ajaero said: “We are aware that the report exposed several acts of corruption ranging from uncompleted power projects to even non-execution of projects, even after monies have been paid. The contractors and politicians have gone ahead to become governors and senators, and nobody has been arrested or taken to jail ever since.”

He explained that the negotiations would be an easy one, stressing that the members of the government negotiation team were people of immense respect and experience, and they have all sincerely listened to the positions of the unions.

He added: “If indeed the government is consciously seeking a way forward to the electricity quagmire in this country, the right place to begin would be to see to the full and unhindered implementation of the Elumelu Committee report on how billions of naira meant for the power sector were squandered.”

He absolved electricity workers of blame in the rot in the system, even as he called on those concerned to be truly committed to making the sector functional.

“The workers are not contractors that have landed us all in this mess. The blame of unstable power supply should not be shifted to workers. It is obvious that if the contractors had done their jobs, Nigerians would have by now enjoyed better quality of electricity.”

On his part, the President of the Senior Staff Association of Electricity and Allied Companies, Bede Okpara, called for a permanent solution to the problem of the power sector, stressing, however, that all stakeholders must be carried along.


http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=48348:electricity-workers-want-elumelu-panels-report-&catid=31:business&Itemid=562

Power generation: Nestoil completes Alaoji gas pipeline
On May 18, 2011 · In Energy ,
By Clara Nwachukwu

LAGOS — THE Federal Government’s efforts to boost power supply in the country have been given a lift with the completion of the gas pipelines that will supply gas to the Alaoji power plant.

Nestoil Plc announced, yesterday, that it had completed the construction and commissioning of the following pipelines that will feed the plant, which is currently Nigeria’s second biggest power plant.

The pipelines include the 18-inch-3.2 km Class 600 gas pipeline at Alaoji, and the 18-inch-0.9km class 600 gas pipeline at Owaza, all in Abia State.

Also completed and commissioned are the new 50mmscfd capacity Pressure Regulating facilities at Aba and the modularised pressure regulating and metering facilities at Alaoji.

According to Project Manager, for Nestoil, an indigenous oil and gas firm, completion of the pipelines for the 1,074 Megawatt, MW, combined cycle power plant, which were completed in February and March this year, is the icing on the cake for its 20 years anniversary celebration because it was completed within budget and on schedule.

Project Manager, for Nestoil, Mr. Michael Nnanna, said, “The pipeline systems construction was completed on February 25, 2011, the commissioning of the pressure regulating facilities at the Nigerian Gas Company, NGC Aba Metering Station was achieved with the introduction of liquefied petroleum gas, LPG, on February 28, while the pipeline system at Owaza was commissioned on March 1, 2011. The testing and commissioning of the Alaoji main gas pipeline also commenced on February 28, with LPG introduced on March 13, via the hot tap loop line.”

He also explained that the contract for the construction of the pipeline was awarded to it by the NGC, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, on August 31, 2010, with a completion date of February 28, 2011. It added that it mobilised to site on September 10, 2010.

Nestoil further said that the completion of the gas pipelines will further consolidate its place in the construction sub_sector of Nigeria’s plum oil and gas industry.

The company said that part of the challenge in executing the job was the realisation that the pipeline length at Alaoji was 3.2KM, against the 2.5KM stipulated in the contract, just as the pipeline length at Owaza was 0.9KM against stipulated 1.2KM. “These differences were, however, reconciled with the NGC Project team, resulting in an additional pipeline length of approx. 350m,” Nnanna added.

Accordingly, he concluded, “It should be stated clearly that NESTOIL has delivered her contractual obligations and the pipeline and process facilities are all operational currently at Aba and Owaza while the Alaoji pipeline has been commissioned and locked up since the power plant is not yet ready to take up the gas.”

Nestoil Plc is one of Nigeria’s leading indigenous Engineering, Procurement, Construction and Commissioning, EPCC companies, and has been a major beneficiary of federal government ’s local content initiative.


http://www.vanguardngr.com/2011/05/power-generation-nestoil-completes-alaoji-gas-pipeline/

Nestoil gas pipeline to boost Alaoji’s 1074mw plants

An indigenous service company – Nestoil Plc has completed the construction and inauguration of an 18 inch x 3.2km Class 600 gas pipeline at Alaoji and 18 inch x 0.9km class 600 gas pipeline at Owaza in Abia State.

The pipeline is to supply gas to the Alaoji Power Plant, one of the the power generating plants under the National Integrated Power Project (NIPP). Alaoji on completion, will deliver 1074 megawatts of electricity into the national grid.

Rockson Engineering, the firm building the power station has already relocated the nearby 330kva lines that will inject power from the plant to the grid.

Nestoil has also completed and inaugurated the new 50MMscfd capacity pressure regulating facilities at Aba and the modularised pressure regulating and metering facilities at Alaoji.

The construction of the pipeline systems was completed on February 25, while the inauguration of the Pressure Regulating Facilities at the Nigerian Gas Company Limited (NGC), Aba Metering Station was achieved with LP Gas introduction on February three days after.

The pipeline system at Owaza was commissioned on March 1 and the testing and inauguration of the Alaoji main gas pipeline also commenced on February 28 with the LP Gas introduction on the 13 via the hot tap loop line.

The construction of the pipeline project was awarded by the NGC, a subsidiary of the Nigeria National Petroleum Corporation (NNPC) on August 31, with a completion date of February 28.

During the construction of this NGC/NNPC Alaoji gas pipeline project, it was discovered that the length of the pipeline at Alaoji was 3.2 kilometre as against the contract length of 2.5 kilometre, while the pipeline length at Owaza was confirmed to be 0.9 kilometre as against the contract length of 1.2 kilometre. The differences were however reconciled with the NGC project team, resulting in an additional pipeline length of approximately 350m.

With its commitment to ensure the achievement of the Federal Government’s target in respect of the provision of gas to power the new NIPP plant at Alaoji as well as meeting the contractual obligation, Nestoil sustained the construction works including the provision of additional pipeline irrespective of the commercial implications as well as the very high security risk status of the project site environment.

Nestoil noted the pipeline system has become operational and that the newly installed pressure regulator has reduced the high pressure to 65 bars gas in Aba. Besides, the firm said it has started the provision of t the required 12.5 bars downstream pressure to the Aba customers at the required temperature; while the high pressure gas of 65 bars has also been brought to the Niger Delta Power Holding Company (NDPHC); NIPP power plant at the required downstream pressure of 40 bars and 20 degrees Celsius temperature for their uptake whenever they are ready for gas.

The project manager, Mr. Michael Nnanna, said: “It should be stated clearly that Nestoil has delivered its contractual obligations and the pipeline and process facilities are already operational in Aba and Owaza, while the Alaoji pipeline has been inaugurated and locked up since the power plant is not yet ready to take up the gas.”

He described the construction of the power plant as a different project being handled by another engineering firm, procurement and construction (EPC) contractor on behalf of the NDPHC.

Nnanna debunked a report that the crude pipeline was completed last year for Shell/NNPC, two years behind schedule, adding that the only crude oil pipeline project that Nestoil completed last year was the widely celebrated Shell/NNPC $1.1 billion NCTL (Nembe Creek Cawthone Channel Trunkline Replacement) project.

http://www.thenationonlineng.net/2011/index.php/news/6597-nestoil-gas-pipeline-to-boost-alaoji%E2%80%99s-1074mw-plants.html

Power: Nestoil Completes NGC-Alaoji Gas Pipeline Project
By Chika Amanze-Nwachuku

18 May 2011

Federal Government’s bid to ensure availability of adequate gas to power the National Integrated Power Plants (NIPPs) has received a major boost as an indigenous company, Nestoil Plc has completed the construction of 18 inch Kilometre gas pipelines at Alaoji and Owaza in Abia State.
The contract was awarded by the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) on August 31, 2010, with a completion date fixed for February 28, 2011.

The 18 inch by 3.2 KM Class 600 Gas pipeline and 18inch x 0.9KM class 600 Gas pipeline was aimed at ensuring the availability of gas at an affordable rate for domestic consumption especially in areas that have significant multiplier effect on the national economy.
The project manager, Mr. Michael Nnanna, who confirmed the completion and inauguration of the gas pipeline projects to THISDAY Tuesday night said the company has also completed the new 50mmscfd capacity Pressure Regulating facilities at Aba and the modularised Pressure Regulating and Metering facilities at Alaoji would boost electricity supply in the state.

The pipeline construction , according to him, was completed on February, 25, 2011, ahead of the set date, while commissioning of the Pressure Regulating Facilities at the NGC, Aba Metering Station was achieved with LP Gas introduction on February 28th, 2011, with the Pipeline system at Owaza commissioned on March 1, 2011.
He said the testing and Commissioning of the Alaoji main gas pipeline commenced on February 28th, 2011 with Liquefied Petroleum Gas
introduction via the hot tap loop line.

Giving further insight on the project Nnanna said site mobilisation commenced in full gear on September 10, 2010 , adding that during the construction of the NGC/NNPC Alaoji gas pipeline project, It was realised that the pipeline length at Alaoji was 3.2KM as against the contract length of 2.5KM, while the pipeline length at Owaza was confirmed to be 0.9KM as against the contract length of 1.2KM.
“The completion of this gas pipeline construction was achieved by Nestoil to consolidate her continuous excellent performance in the Oil and Gas Pipelines and Facilities Construction industry. During the construction of this NGC/NNPC Alaoji gas pipeline project, It was realised that the pipeline length at Alaoji was 3.2KM as against the contract length of 2.5KM, while the pipeline length at Owaza was confirmed to be 0.9KM as against the contract length of 1.2KM.

These differences were however reconciled with the NGC Project team, resulting in an additional pipeline length of approximately 350metres.
“With the commitment to ensure the achievement of the Federal Government’s target in respect of provision of gas to Power the new NIPP power plant at Alaoji as well as meeting her contractual obligation, NestOil sustained construction works including the additional pipeline construction irrespective of the commercial implications as well as the very high security risk status of the Project Site environment.
“A recent malicious report failed to note that the pipeline system is already in operation with the newly installed pressure let down station processing and reducing the high pressure 65 barg gas at Aba and providing the required 12.5 barg downstream pressure to the Aba customers at required temperature; while the high pressure gas of 65 barg has also been brought to the doorstep of the Niger Delta Power
Holding Company, NDPHC - NIPP power plant at the required downstream pressure”.

He said Nestoil has delivered her contractual obligations and the pipeline and process facilities are all operational currently at Aba and Owaza, while the Alaoji pipeline has been commissioned and locked up since the power plant is not yet ready to take up the gas.” The Project manager explained that the power plant construction works is a different Project and is being handled by another EPC Contractor
on behalf of the NDPHC.

“A crude oil pipeline contract that Nestoil reportedly completed last year for SHELL/NNPC, two years behind schedule, is totally unknown to
NESTOIL. The only crude oil pipeline project that Nestoil completed last year was the widely celebrated Shell/NNPC $1.1 billion (Nembe
Creek Cawthone Channel Trunkline Replacement project, for which Shell issued three commendation awards to Nestoil for successfully and
professionally completing and commissioning the pipeline, one full month ahead of schedule, without any safety incidents. He added that the company’s successful and timely execution of the complex pipeline project was widely applauded locally and internationally as the company executed the high risk activities in the face of challenging security situation without a single fatality. The Shell/NNPC pipeline evacuates about 600,000 barrels of crude oil per day from 14 flowstations and required seven major river crossings; 44 minor river and creek crossings and the fabrication and installation of two brand new main tie in manifolds.


http://www.thisdaylive.com/articles/power-nestoil-completes-ngc-alaoji-gas-pipeline-project/91561/

I believe these news reports must have been based on a press release issued by NESTOIL in response to the recent questions raised about the pipeline to the Alaoji IPP.

FG delays PHCN sale, fails to approve EoIs .

Thursday, 26 May 2011 00:00 Badejo Ademuyiwa, Abuja & Anthony Osae-Brown, Lagos

The fulfillment of the promise to provide stable electricity for the country may tarry a while following the non-approval of the outcome of the evaluation of Expression of Interests (EoI) for the units of the Power Holding Company of Nigeria (PHCN) on sale.

This delay comes on the heels of the readiness of the Central Bank of Nigeria (CBN) to facilitate loans in its efforts to ensure the success of the power sector reforms.

Bola Onagoruwa, the director-general, Bureau of Public Enterprises (BPE), at a technical workshop on Nigerian Power Sector Reform hinted of the non-approval of the EoIs.

EoI from prospective investors, represents the first stage in any privatisation exercise. Once this step is completed, request for proposals (RFPs) and bid documents will be issued to preferred bidders.

BPE had between December 13 and 20, 2010, through adverts in local and foreign media sought prospective investors’ interest in the 11 distribution companies unbundled from PHCN.

It also invited investors to express interest in the four thermal power stations and concessionaires for the two hydro power stations. The initial deadline for receipt of EOIs was Friday, February 18, 2011 but later extended to March 4.

331 EoIs were harvested, comprising of 174 applications for the four thermal stations and the two hydro stations and 157 for the 11 distribution companies. The outcome of the evaluation has since April been presented to the National Council on Privatisation (NCP) for approval which has not yet come.

At the workshop entitled, ‘Understanding the role of banks and key private sector stakeholders in the privatisation process,’ organised by the Central Bank of Nigeria (CBN) and the bureau, the DG said the progress of the process depends on the approval.

“We have concluded the evaluation of the EoIs but we have not gotten the feedback from the presidency. We will publish the list once we get the approval and continue the work,’ she said.

“I cannot give you a specific time to continue with other processes because it is subject to the approval,” Onagoruwa said.

She however allayed the fears of banks if they assisted the emerging investors and assured that each distribution company would be financially viable. She noted that Multi-Year-Tariff-Order (MYTO) has been designed to raise enough revenue from DISCOs to fund other areas of the value chain. These include: gas or fuel supply; whole electricity generation costs; transmission charge, system and market operation charges; and regulation charges

“Total cost required to ensure viability of the entire industry has been computed and shared among all the distribution companies,” she told the banking operators.

Sanusi Lamido Sanusi, the CBN governor, meanwhile also stressed that stable electricity would provide opportunities to move Nigerians out of poverty.

The apex bank governor said the efforts to assist the sector should not be left to the CBN alone, as it affects all the units in the financial services sector.

“Every regulator like the National Pension Commission (PENCOM), National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC) and the Finance Ministry should come and assist because electricity is not about light but opportunities to move a population of 150 million out of poverty.”

Sanusi said the banks had not been helpful because of the failure of corporate governance and the fact that banks in this part of the world have stopped being an intermediary channeling financial resources to create jobs.

He assured prospective investors of the apex bank’s assistance to secure facility, but he ruled out equity participation in the emerging power plants.

Sanusi, who had also earlier observed the urgent need to unlock the idle funds in the country to grow the power sector in order to empower the army of unemployed youths now standing at about 49.9 per cent, said, “Fixing power is what we need now. Electricity is not about light. It is about the opportunity it provides Nigerians to move out of poverty into self sufficiency. It is what will enable the artisan do his job, the barber to concentrate on what he is doing and become self-employed. As at today, about 49.9 per cent of youths are unemployed.”

Restating the call on the Federal Government to unlock part of the pension fund into the development of the sector, the CBN governor argued that it would be of more benefit to spend such fund in growing the power sector than using it to subsidise petroleum.

He said the CBN could not bankroll the entire infrastructure in the country, adding that there was enough money in the pension fund, the capital market and the budget to develop some of these facilities. While pledging the apex bank’s continued intermediation role in the development of infrastructure, he advised that the Ministry of Finance should inject enough funds for the development of infrastructural facilities.

Also speaking, Barth Nnaji, chairman, Presidential Task Force on Power, said the Federal Government reform in the last few months had boosted investor confidence in the sector unlike in the past when there was no funding and non-participation of the private sector in the system.

According to him, “Now, we ensure that investors have to be protected by government policies. The framework is intended to ensure that investors will be comfortable when they come. About a year ago, the reform was not going well, but today, government has moved forward to ensure investors come. Now banks are playing a role they did not do before.”

Lamenting the fact that no power plant is currently operating at full capacity, he argued that public support for the sector could become high if service delivery was good. On the issue of renewable energy, he said a lot of issues had to do with tariff, insisting however, that the cost of buying power was more expensive in this regard.

“It has to be a debatable government policy to buy power from renewable energy. NERC (Nigerian Electricity Regulatory Commission) is coming up with the actual tariff for this,” he said.

For the far flung areas where the conventional system could not reach, there might be need to use renewable energy, Nnaji said.

The core investor sales to be carried out through international competitive bidding will cover the eleven electricity distribution companies in the country. They are: Abuja Electricity Distribution Company Plc; Benin Electricity Distribution Company Plc; Enugu Electricity Distribution Company Plc; Eko Electricity Distribution Company Plc; Ibadan Electricity Distribution Company Plc; and Ikeja Electricity Distribution Company Plc. Others are Jos Electricity Distribution Company Plc; Kaduna Electricity Distribution Company Plc; Kano Electricity Distribution Company Plc; Port Harcourt Electricity Distribution Company Plc; and Yola Electricity Distribution Company Plc.

Meanwhile, the BPE has received 900 bids from 331 companies for the 18 unbundled companies of the Power Holding Company of Nigeria (PHCN) Plc.

This was revealed by Amaechi Aloke, project manager, power, who spoke at the Renaissance Capital 2nd Pan-African conference, held in Lagos.

Amaechi said the bids were received from leading and reputable energy companies all over the world.

http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/22075-fg-delays-phcn-sale-fails-to-approve-eois

New electricity tariffs to take effect January, 2012 .

Tuesday, 31 May 2011 19:59 AMETO AKPE, ABUJA . .The new electricity tariffs for the country, currently being consulted on, are to come into effect on the first day of January 2012, Chairman of the Nigerian Electricity Regulatory Commission (NERC) Sam Amadi has said.

The new tariffs were formerly to be announced in June this year following the working out of all parameters associated with generation, transmission and distribution; however, Amadi, making this disclosure Tuesday at a stakeholder consultation workshop in Abuja on the major review of the Multi-Year Tariff Order (MYTO) noted that President Goodluck Jonathan had granted approval for a 2012 implementation to enable further stakeholder consultations.

He said that the Commission was sparing no effort in verifying data supplied by operators to ensure final tariff is fair to all stakeholders, “In this vein, operators will be required to defend the veracity of data submitted. In this way the Commission will promote transparency in the tariff determination process,” the Chairman explained.

Amadi said, “In recognition of the enormous challenge and in furtherance to his commitment to address the challenge of power supply in the country, President Goodluck Jonathan has granted approval that the revised electricity tariffs we expect to emerge from this consultative process take effect on 1st January 2012.

“This will amongst other things enable the Commission engage further with all relevant stakeholders for their understanding and also align the review dates with calendar of most business especially in the Nigerian Electricity Supply Industry (NESI) and the gas supply sector,” he added.

http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/22385-new-electricity-tariffs-to-take-effect-january-2012

BPE shortlists 525 bids for PHCN sale .

Thursday, 02 June 2011 00:00 Badejo Ademuyiwa, Abuja & Anthony Osae-Brown . .

The National Council on Privatisation (NCP) has approved the short listing of 525 bids of companies queuing up as successor companies to the Power Holding Company of Nigeria (PHCN), in a move likely to see the state power company finally split into a number distribution and generating firms.

The bids process, which could be completed before the end of this month, would herald a fresh effort by the Federal Government to see to the end of PHCN as the country’s power monopoly and diversify it for efficiency and innovativeness.

A breakdown of the bids shows that 253 were pre-qualified for distribution companies while 272 were for generating companies.
The Bureau of Public Enterprises (BPE) had, between December 13 and 20, 2010, sought prospective investors’ interest in the 11 distribution companies unbundled from PHCN.

It also invited interest in the four thermal power stations and concessionaires for the two hydro power stations. The initial deadline for receipt of expression of interest (EoI) was Friday, February 18, 2011 which was later extended to March 4.

Industry analysts hope that with this approval, the privatisation process of PHCN will enter the next stage and move the country further in the quest for stable electricity supply.

The bidders will now be issued with bid documents with which to make their technical and financial bids.

Bola Onagoruwa, director-general of the privatisation agency, had disclosed last week at a workshop that the BPE was awaiting approval of the NCP for it to announce the report of the evaluation of the 331 EoIs harvested for the successor companies.

The secretariat of the NCP had harvested 929 bids for individual successor companies from 331 EOIs received from prospective investors.
The list of pre-qualified bidders was approved by the chairman of the NCP, Vice President Mohammed Namadi Sambo, in line with the privatisation procedure.

The pre-qualified bidders will be required to pay a $20,000 fee for each company of interest and sign a confidentiality agreement before receiving bid documents and for admittance to the data room.

At the deadline of March 4, 2011 for the submission of bids by prospective investors, the BPE received 331 envelopes of EOI. This was broken into 174 for generating companies and 157 for distributing companies.

However, total number of individual bids for the successor companies increased to 929 when the 331 EoI envelopes were opened and individual bids sorted out. The breakdown of the individual bids showed that 529 bids were submitted for distribution companies and 400 bids for generating firms.

The BPE developed evaluation criteria in accordance with the requirements of the EoI. It also considered a benchmark that would provide a reasonable basis for pre-qualifying bids.

A strong inter-agency team constituted the evaluation committee that undertook the assignment.

The pre-qualified bidders for the distribution companies are expected to be existing power distribution companies or core investor groups with power distribution companies as long-term technical partners. Successful bidders will be responsible for operating the distribution companies, making the necessary investments to improve the distribution network and customer service in line with the objectives of the Federal Government of Nigeria set out in the National Electric Power Policy (NEPP).

As for the generating companies, potential bidders/concessionaires should be existing local and/or international power generators or investors with power generators as long-term technical partners. They will be responsible for operating the stations, improving the generation capacity and making the necessary investments in line with the objectives of the Federal Government of Nigeria set out in the NEPP.


http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/22432-bpe-shortlists-525-bids-for-phcn-sale-

Power generation from Egbin increases to1000mw
By Our Reporter 21/06/2011 00:00:00

Chief Executive of Egbin Thermal Station in Lagos, Mr Mike Uzoigwe, said power generation from the station has increased to about 1,000 mega watts.

Uzoigwe told the News Agency of Nigeria (NAN) in Lagos yesterday that four out of the station’s six units were now working at full capacity due to adequate gas supply to the turbines.

He said power generation from the station dropped to 500 mega watts two weeks ago due to shortage of gas.

Uzoigwe said the fifth unit would be operating as soon as the station received gas supply yesterday.

He said he expected the country’s power generation to have increased because there had been enough gas supply to some power generating stations.

"We are sure that before the end of the week, we are going to hit 1, 200 mega watts because of the available gas supply.

"For now, Egbin power generation has bounced back to about 1,000 mega watts from about 500 mega watts it was in the last two weeks due to poor gas supply and low water level,’’ he said.

Uzoigwe said the station would reach its installed capacity of 1,320 before the end of fourth quarter of the year when the sixth unit, which is currently down, was fully repaired.


http://www.thenationonlineng.net/2011/index.php/business/9947-power-generation-from-egbin-increases-to1000mw.html

Power: FG signs $81.7m contract with HydroChina
By Sunday Ojeme, Abuja
Tuesday, 28 Jun 2011



As part of the ongoing efforts to ensure stable power supply in the country, the Federal Government on Monday signed a contract worth $81.7m (about N12.6bn) with the HydroChina Huadong/Harbin Electric Corporation of China.



The contract, which was signed at the headquarters of the Power Holding Company of Nigeria in Abuja, is for the rehabilitation of the Kainji and Jebba power plants and dams.



The contract is expected to be completed in 42 months with the first units beginning in 27 months. It is expected to generate about 340 megawatts on completion.



The contract endorsement came just as the Managing Director, PHCN, Mr. Hussein Labo, disclosed that power generation had dropped from the 3,995MW, recorded a few weeks back, to 3,400MW due to inconsistency in gas supply and river flow.



Giving the details of the project, the Head, Project Monitoring Unit, PHCN, Mr. Monsuru Adebayo, said that the fund for the project was a credit from the World Bank under the Niger Basin Water Resources Development and Sustainable Ecosystems Management Programme being coordinated by the Niger Basin Authority.



He said, “The pre-contract discussion was held in Abuja between April 18 and 21, 2011 and the draft contract was initialled. The bank, after a careful assessment of the minutes of the pre-contract discussion and the draft contract, gave its ‘no objection’ on June 16, 2011 to award the contract at a cost of $81.7m to the consortium of HydroChina Huadong/Harbin Electric Machinery Company.



“The rehabilitation of the Kainji and Jebba power plants and dams aims at securing both hydro mechanical equipment and the dam structure with the goal of reducing further production shortage or breakdown. The rehabilitation of units IG5, IG6 and IG12 of the Kainji power plant is the most important contract in the entire Phase 1.”



The construction of the Kainji Dam began in 1964 and was completed in 1968. The total cost was estimated at $209m, with one-quarter of this amount used to resettle people displaced by the construction of the dam and its reservoir, Kainji Lake. It is one of the longest dams in the world and was designed to have a generating capacity of 960MW.



Occasional droughts have, however, made the river’s water flow unpredictable, diminishing the dam’s electrical output.



Labo assured the contractors of full cooperation of the local team and the community where they would be working.



He also promised to ensure that the job was finished within the stipulated time frame, saying that he would ensure that the contractors did not disappoint Nigerians.



Responding, the Vice-Chief Economist, Harbin Machinery Company Limited, Mr. Wu Janbin, said that the team would demonstrate its capacity to get the job done because the project was an important one to Nigerians.



“Nigeria is a great country and Kainji is a very important project. Nigeria is important in Africa. We fully understand the importance of the project. We promise not to spare any effort in doing our best to get the job done on time. During the execution of the contract, we will abide by the laws of your people. By signing the contract, we are bound together,” he said.





http://www.punchng.com/Articl.aspx?theartic=Art20110628254229

Interesting.

I'm a bit envious of China btw

The easiest way to get out of this mess is to tell the government to mind their own business. No subsidy, no liscence auction. Let it be a real free market and allow anybody to invest without restrictions expect for standards and safety. That way those places that can afford electricity would use uninterrupted electricity and government should supply electricity to those they think are disadvantaged (they would mess up and be ashamed of themselves). The truth is that public property is nobody's property hence the unaccountability, corruption, and gross incompetence we see in every government managed projects. The federal project was and is still the worst thing that happened to us; which some people supported because they taught it would help them take over wealth they didn't work for. Now we all are paying for it. Deregulate all industries (genuine deregulation not auctioning licenses for millions of dollars and then beg manipulative foreign giants to come and help) and everything would naturally fall int place. One of the biggest problem in Nigeria is still policies and laws. Please tell them to deregulate all industries in our beloved countries, and stop auctioning out our future. Naija wise up. Nigeria is not a capilast country, it is not socialist, it is not communist, wtf is it. It has no definition and that is why they come up with anything as business law and have nothing to support their claims that it would make our economy better. Until power industry is completely deregulated, we a not going anywhere.