Several efforts have been employed by the Federal Government to boost power generation in the country. Such effort is the Nigerian Petroleum Development Company (NPDC)’s efforts to deliver 65 million standard cubic feet per day of gas into domestic market from Oredo field in Oil Mining Lease, OML 111.
The 65MMSCF, the company said, was in response to the high demand for natural gas and is capable of generating about 260 megawatts (MW) of power into the national grid.
But the question remains, who pays for the gas supply from OML 111. Recently, the Nigerian National Petroleum Corporation (NNPC) lamented inability of the Power Holding Company of Nigeria (PHCN) to settle its outstanding debt of N26 billion.
According to the NNPC’s Group Executive Director (Gas and Power), Dr David Ige, “On the average, our monthly bill is about N2.5 million for gas supply to PHCN. Cumulatively, what we are being owed is about N26 billion as at mid-2012,” he said.
The challenge of indebtedness of PHCN to its gas suppliers and other creditors led to the setting up of Nigerian Electricity Liability Management Company (NELMCo), but lack of take off fund has hindered the conceptualisation of framework for the company to take over the liability immediately the privatisation of PHCN is concluded in mid 2013.
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