Gas Shortage Hits Aba Power Plant, Affecting Economic Growth
Aba, Nigeria – Geometric Power, a leading power generation company, has lamented the acute shortage of natural gas supply to its 188-megawatt plant in the Osisioma Industrial Estate in Aba, Abia State. The company’s Managing Director, Ugo Opiegbe, disclosed this in a statement on Thursday, citing the severe impact on the state’s economic growth.
According to Opiegbe, the company has been constrained to import 25 megawatts of electricity from the Niger Delta Power Holding Company (NDPHC) at a significant cost to ensure that customers have a steady supply. This is despite the company’s ability to generate 141 megawatts of electricity from its three General Electric (GE) turbines.
The company noted that the Aba Ringfence requires about 90 megawatts of electricity, which it can generate from two of its installed three turbines. However, the unreliable gas supply has resulted in the company importing electricity, despite having the capacity to generate excess power.
The shortage has affected hundreds of thousands of customers, particularly manufacturing firms that rely on the company’s power supply. Geometric Power built the $800 million Aba Integrated Power Project to accelerate the industrial development of Aba and its environs, but the gas shortage has hindered its efforts.
The company signed an agreement with The Shell Petroleum Development Company (SPDC) in 2009 for the supply of 43 million standard cubic feet of gas from its Oil Mining Licences (OMLs) 11 and 17. However, the withdrawal of Shell from Nigeria’s onshore and shallow offshore operations has led to the transfer of ownership and management of the OMLs to local operators, who have failed to deliver a reliable gas supply.
Geometric Power is working to resolve the gas supply challenge, acknowledging the efforts of Vice President Kashim Shettima, Abia State Governor Alex Otti, Power Minister Adebayo Adelabu, and Nigerian National Petroleum Company Limited (NNPCL) Group Managing Director Mele Kyari in assisting to get a more reliable source of gas to the power plant.
The company is optimistic that it will overcome the gas shortage within a month, ensuring a steady supply of electricity to its customers.
