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NDPHC, Eko Disco, Address Electricity Supply Shortfall in Lekki and Agbara

Published

4 years ago

June 11, 2021

NDPHC, Eko Disco, Address Electricity Supply Shortfall in Lekki and Agbara

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

In order to improve electricity supply around Ibeju-Lekki area in Lagos and Agbara Industrial area in Ogun State, the Niger Delta Power Holding Company (NDPHC) and Eko Electricity Distribution Company Plc (Eko Disco), have signed a bilateral agreement for the sale of up to 300MW of power from NDPHC’s power plants to customers in these areas within Eko Disco’s franchise areas.

The Lagos State Governor, Mr. Babajide Sanwo-Olu who hosted the signing of the agreement for these projects at Lagos House, Marina recently, commended the initiative by NDPHC and Eko Disco, and stated that “he will monitor the implementation of the agreement.” The Governor expressed his confidence that the collaboration between NDPHC and Eko Disco will complement the current policies of the state government in economic and infrastructure development.

NDPHC and Eko Disco have committed to work together to deliver safe, reliable and steady supply of power to customers in the areas of collaboration. The project will be structured to remove the commercial and technical inefficiencies in the Nigerian electricity market and will mobilise significant capital investment in transmission/distribution infrastructure and metering technology.

In his remarks, the NDPHC Managing Director/CEO, Mr. Chiedu Ugbo stated that the challenges in the industry inspired NDPHC to “source alternative means to sell and ensure dispatch of its stranded power generation capacity and explore innovative ways to unlock investment in infrastructure for improved supply to customers.”

In turn, the MD of Eko Disco, Engr. Adeoye Fadeyibi said that the partnership aligns with the efforts of the Eko Disco to bridge the metering gap and improve the quality of electricity supply to customers. He appreciated customers for their continued support for the Company in its quest to continue to empower the quality of lives of all stakeholders.

The agreement signed between NDPHC and Eko Disco is only the latest milestone in NDPHC’s innovative and ambitious programme to tackle the industry-wide challenges in the Nigerian power sector. These challenges have resulted in the inability of the operators in the industry to fulfil their investment and industry payment obligations, and a continuing low access to reliable power for industry, businesses and homes.

Despite a significant installed generation capacity – estimated to be more than 13,000 MW – access to electricity remains acutely low because much of this installed capacity is stranded and cannot be conveyed to customers because of inadequate transmission and distribution capacity. Operators insist that tariffs remain at a level that cannot guarantee returns for investors in the sector and as a result, an estimated $20 billion capital investment required to upgrade the transmission and generation infrastructure is not available. Insufficient investment in metering, collection and surveillance, among other factors, has also made collections by the distribution companies inefficient, thereby causing revenue loss across the value chain. A combination of these factors has led to severe liquidity shortfalls and a ballooning deficit in the market, and there simply is not enough collections from customers to cover the cost of power generation and delivery. The Federal Government has on several occasions intervened with financial bailouts to the sector, but this solution is only short term and is becoming an increasingly heavy burden on a cash-strapped government struggling with low oil prices and a struggling national economy.

The operators in the industry have had to innovate or go out of business. It is in this regard that NDPHC is blazing a trail in structuring deals that are solving many of the industry-wide challenges affecting its business. NDPHC, holds a portfolio of 10 power plants with aggregate installed capacity of more than 4,000MW and growing. To ensure that much of its capacity does not remain idle, NDPHC, with support from Electric Utilities Nigeria Limited, is now targeting to work with discos and other project developers to, in the first phase, sell more than 1,000MW from its power plants in manner that resolves the current commercial and technical inefficiencies in the market without a need for government funding intervention.

In addition to the agreement signed with Eko Disco, NDPHC has executed similar agreements with Port Harcourt Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, Kaduna Electricity Distribution Company Plc and Benin Electricity Distribution Company Plc. In each case, the parties will mobilise investment in the expansion of the distribution network of the discos to enable increased offtake of power and in metering technology including smart meters in order to increase the collection rate of the discos.

For NDPHC, these collaborations will lead to greater offtake of power from its under-dispatched power plants, thereby increasing the company’s revenue. For the industry generally, these collaborations will attract the requisite investment in the industry and increase liquidity that enables higher payment receipts across the value chain. Now that NDPHC has executed the agreements with 5 discos and more in the pipeline, it is projected that the impact on the Nigerian power sector will be massive in improving electricity access, market payments and attracting more investments to the industry.

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Published

1 week ago

December 14, 2024

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Boost for Nigeria’s Oil Production, As NNPC’s Utapate Crude Grade Hits Global Oil Market

Published

1 month ago

November 20, 2024

august24admin

…OML 13 Asset Eyes 80,000 bpd by End of 2025

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

In a major boost for Nigeria’s crude oil production, revenue generation and economic growth efforts, the NNPC Ltd has officially unveiled its latest crude oil grade, the Utapate crude oil blend, before the international crude oil market.

Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart speaks at the official unveiling of the Utapate crude oil blend during the Utapate Crude Roadshow held on the sidelines of the 2024 Argus European Crude Conference in London, United Kingdom, on Wednesday.

It would be recalled that in July, 2024, NNPC Ltd and its partner, the Sterling Oil Exploration & Energy Production Company (SEEPCO) Ltd introduced the Utapate crude oil blend, following the lifting of first cargo of 950,000 barrels which headed for Spain. During a ceremony held at the Argus European Crude Conference taking place in London, United Kingdom, on Wednesday, the Managing Director, NNPC E & P Limited (NEPL), Mr. Nicholas Foucart described the introduction of the Utapate crude oil blend into the market as a significant milestone for Nigeria’s crude oil export to the global energy market. “Since we started producing the Utapate Field in May 2024, we have rapidly ramped up production to 40,000 barrels per day (bpd) with minimum downtime. So far, we have exported five cargoes, largely to Spain and the East Coast of the United States; while two more additional cargoes have been secured for November and December 2024, representing a significant boost to Nigeria’s crude oil export to the global market,” Foucart told a packed audience of European crude oil marketers. He added that since its introduction into the global market, the Utapate crude oil blend has enjoyed a positive response from the international crude oil market, due to its highly attractive qualities. Foucart said the Oil Mining Lease (OML) 13, fully operated by NEPL and Natural Oilfield Services Ltd (NOSL), a subsidiary of SEEPCO Ltd, boasts a huge reserves of 330million barrels of crude oil reserves, 45 million barrels of condensate and 3.5 tcf of gas.

“We have a number of ongoing projects to increase our production from the current 40,000bopd to 50,000bopd by January 2025 and 60,000bopd to 65,000bopd by June 2025. Essentially, we are targeting opportunities to increase production to 80,000bopd by the end of 2025,” Foucart added.

He said the Utapate crude oil terminal is sustainable, affordable and fully compliant with the rigorous environmental regulations and sustainability principles especially those aimed at reducing carbon emissions and other ecological effects. Also speaking, the Managing Director of NNPC Trading Ltd (NTL), Mr. Lawal Sade said the pricing structure of the Utapate crude oil blend is similar to that of Amenam crude as it is a light sweet crude which is highly sought after by refiners across the world due to its low sulphur content, efficient yield of high-value products, API gravity and other similarities. He said in bringing the new crude oil blend to the global market, NNPC Ltd wanted to optimise value for both its producers and counterparties across the globe.

He added to ensure predictability and sustainability of supply, the NNPC Trading intends to run a term contract on the Utapate crude oil blend cargoes, principally targeting off-takers from the European and the US East Coast refineries. Produced from the Utapate field in OML 13 in Akwa Ibom State in Nigeria, the Utapate crude oil blend is similar to the Nembe crude oil grade. It has a low sulphur content of 0.0655% and low carbon footprint due to flare gas elimination, fitting perfectly into the required specification of major buyers in Europe.

The NNPC E&P Ltd and NOSL partnership is also committed to operating in a manner that is safe, environmentally responsible, and beneficial to the local communities.

The Utapate field development plan, executed between 2013-2019 and approved in October, included converting wells and facilities from swamp/marine to land-based operations.

The plan involved a multi-rig drilling campaign for 40 wells and the development of significant infrastructure such as production facilities, storage tank, a subsea pipeline and an offshore loading platform to facilitate crude oil evacuation and loading.

The entry of the Utapate crude oil blend into the market is coming barely a year after the NNPC Ltd announced the launch of Nembe crude oil, produced by the NNPC/Aiteo operated Oil Mining Lease (OML) 29 Joint Venture (JV). This remarkable achievement signals the commitment of the NNPC Ltd to increasing Nigeria’s crude oil production and growing its reserves through the development of new assets.

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Published

2 months ago

October 31, 2024

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NNPC Ltd Launches Free Cancer Screening Campaign, Targets 3,000 Nigerians The Nigerian National Petroleum Company Ltd (NNPC Ltd) through NNPC Foundation, its Corporate Social Responsibility (CSR) arm, is set to launch a free cancer screening campaign to address Nigeria’s rising cancer cases. The campaign tagged “Cancer Awareness and ZSX Screening” will provide, not just free cancer screening to indigent Nigerians, but also health education, workshops, and consultations with healthcare professionals aimed at empowering individuals to recognize early symptoms, adopt preventive health measures, and better understand the importance of regular screenings. The campaign which will be organised in collaboration with local health authorities and expert healthcare providers is targeted at reaching about 3,000 individuals across the six geo-political zones with screening centres in Kaduna, Rivers, Ondo, Benue, Imo, and Gombe. The initiative will focus on breast, cervical, and prostate cancer, offering critical early detection support for at-risk populations. Shedding more light on the objectives of the campaign, the Managing Director of NNPC Foundation, Mrs. Emmanuella Arukwe, said: “The fight against cancer requires a collective effort and a commitment to ensuring accessible healthcare. This campaign is about more than just screening; it’s about saving lives, building awareness, and creating pathways to preventive care for Nigerians who need it most. “In a country of over 200 million people, too many still lack access to the early detection tools that could make a life-saving difference. NNPC Foundation is dedicated to addressing this critical gap by bringing cancer screenings directly to communities. Early detection is crucial to improving survival rates, and this campaign is a vital step towards that goal.” Cancer remains one of the most formidable health challenges in Nigeria, with over 79,000 cancer-related deaths annually, according to the World Health Organization (WHO). The most common cancers affecting Nigerian men include prostate and liver cancer, while women are predominantly impacted by breast and cervical cancers. The campaign seeks to counter the trend of late-stage diagnoses, which occur frequently due to limited access to screening facilities, cultural stigmas, and insufficient awareness. This initiative follows the success of a screening drive in February 2024, where over 200 Abuja residents received free breast, cervical, and prostate cancer screenings. These free cancer screening campaigns reflect NNPC Ltd.’s broader mission to promote health equity and enhance the well-being of Nigerians across the country through its Foundation.