Osinbajo
The Federal Government is considering the creation of “a permanent pipeline security force” to protect sensitive pipelines across the country.
Vice President Yemi Osinbajo said if established, such a force “would be armed with sophisticated weapons to ensure we contain the vandalism, and overhaul security.”
Osinbajo called for an expedited repair of the Forcados Terminal in Delta State operated by Shell and the activation of an alternative process to ameliorate gas supply deficit in the country.
He spoke at the weekend when he visited the Forcados Terminal in Delta State. He was accompanied by Governor Ifeanyi Okowa.
The Vice President said President Muhammadu Buhari is concerned about the damage done to the terminal in February, which resulted in loss of gas supply to power plants and significant loss of potential revenue.
He said President Buhari asked him to visit and assess the situation which has been responsible for the recent drop in electricity supply in the country.
A statement on the trip made available yesterday by Senior Special Assistant on Media and Publicity, Laolu Akande, quoted Osinbajo as saying that the president is equally concerned that the gas projects under the disposal of Shell, which will beef up domestic supply of gas in the country, needs to be speedily completed.
“What is going on here affects the Nigerian people and the economy,” Osinbajo told Shell and Nigerian National Petroleum Corporation (NNPC) officials at the meeting. He was referring to the loss of gas supply to power plants and the loss of potential foreign exchange earning arising from the inability to produce over 250,000 barrels of oil per day, due to the damage done to the terminal.
“The damage done to Forcados affects our oil earnings but also as important is the power aspect. It (Forcados)-is a major source of gas, about 40 per cent of our gas supply is affected leading to the problem of power supply in the country,” the Vice President told Shell officials led by Country Chairman Osagie Okunbor and NNPC officials led by Bello Rabiu, the Chief Operating Officer (CEO) for Upstream.
He added: “I came here on the instruction of the President who is concerned about the damage done to Forcados. I came here to see for myself and underscore the great implication for the nation’s economy. Many people don’t even know that power supply is hampered by what is going on here.”
He charged the officials to do what can be done and expeditiously as possible to repair the damaged terminal.
According to a repair plan presented to him during the visit by Shell, the repair work which is in three phases is about concluding its first phase with expectation that the repair will be concluded in May.
The NNPC also presented an interim alternative plan to supply gas to the plants including trucking condensate.
Osinbajo expressed concern of the federal government that IOCs that seat on 80% of gas deposits in the country have not been as forthcoming regarding gas supply to the domestic market.
“Even if it is as a matter of public service,” Prof Osinbajo encouraged the IOCs to do a lot more for domestic gas supply considering the gas supply problems in the country, stressing that “we are clearly suffering in terms of domestic supply.”
For instance, he harped on the need for Shell to speedily complete the Bonga and Forcados/Yokri gas projects in order to assuage the plight of the Nigerian people.
“The president is particularly concerned about this outstanding gas projects.” he noted
The Bonga Gas Diversion project would provide 120mmscf/d when completed by the second quarter of this year, while the Forcados/Yokri gas project would provide 80mmscf/d at completion expected at the same timeline.
There is also the Assa North/Ohaji South project which can also provide 500mmscf/d.
Experts say currently, gas production into domestic network in the country has fallen to 601mmscf/d from usual 1.1bcf/d.
The implication is that the country is now losing about half a billion cf/d, which roughly accounts for about 2000MW of electricity.
Osinbajo also told reporters that “the damage done to Forcados terminal is the chief reason for the poor power supply that has affected the country recently.”
Delta State Governor Ifeanyi Okowa, lamented that “the Forcados terminal is important to Delta state and the nation. That is where SPDC evacuates its products and other land operations including Seplat evacuating products from there for sale. Now, all the production on land by SPDC is shortened.”
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