Immediate past Group Executive Director (GED) in charge of Gas and Power at the Nigerian National Petroleum Corporation (NNPC), Dr. David Ige has said that the two most critical challenges in the short term plaguing the power and gas sectors were project delivery and vandalism, ThisDayreports.
Ige said there were many gas supply projects that had been in very advanced stages of maturation for the last one or two years, but were yet to be completed. He said some of the problems with project delivery are as follows; funding inconsistency, which results in payment delays and cost overruns; Bureau of Public Procurement (BPP) approvals, internal board approvals; community interruptions; contractor performance; and inadequate mechanisms for responding to real time scope changes. Ige, who is the Chief Executive Officer of GasInvest Limited, also added that vandalism was the next challenge, which needed to be addressed.
Ige said despite the frustrations about gas, gas supply capacity had actually grown at the fastest rate in the last three years or so, from about 400 million cubic feet per day (mmcf/d) to now close to 2,000mmcf/d. “However much of this growth is not visible due to the vandalism mentioned above or due to other challenges in the power sector such as transmission, leading to cases of stranded gas, most notably in the East” he said.
Ige also noted that with regard to this growth in supply, it was mostly the independents that were involved. The IOCs have made very insignificant contribution to the growth in supply and are less likely to do so going forward,” Ige explained. Ige therefore charged President Muhammadu Buhari’s administration to focus its incentives on this category of independent developers and identified their key challenge as access to acreage. Ige also said the present administration must deploy more stringent criteria before renewing acreages for underperforming companies.