The Nigerian National Petroleum Corporation (NNPC), Group Managing Director, Mallam Mele Kyari, has said that the supply of gas to power generating companies (Gencos), has significantly improved, but that the key issue now is that of transmission.
A statement by the Group General Manager, Group Public Affairs Division, Dr. KennieObateru, said that Kyari spoke during the 2021 budget defense and performance appraisal meeting with officials of the corporation which held at the National Assembly Complex, Abuja.
Kyari, who was represented by the Chief Operating Officer, Gas and Power, Mr. Yusuf Usman, attributed the success of the corporation in the gas sector to the support and cooperation of the committee and the entire legislature.
He said gas supply to power had improved to a large measure, which he said was evident in the improved power supply currently being witnessed in the country.
“We have significant gas in the network currently, but the challenge, however, is the transmission,” the Kyari stated.
On the AKK pipeline project, the NNPC boss told the lawmakers that it was designed to supply 2 billion cubic feet of gas per day (2bcfd), stressing that it would be the primary source of gas for the power plants currently being developed in Abuja, Kaduna and Kano.
In its remarks, the Senate Committee on Gas commended the NNPC on the various gas development projects it had undertaken, especially the Ajaokuta – Kaduna – Kano (AKK) gas pipeline project.
Chairman of the Committee, Senator James Manager, the statement said, expressed satisfaction with the various gas development projects embarked upon by the NNPC despite the impact of COVID-19 on the oil and gas industry.
He said the interface between the committee and the NNPC would have been more frequent but for the lockdown due to the COVID-19 pandemic and reassured the corporation that his committee would undertake an oversight visit to the projects for proper assessment soon.
On his part, a member of the committee, who is also the immediate past chairman, Senator Albert Akpan Bassey, lauded the NNPC for publishing the 2018 and 2019 Audited Financial Statements (AFS) and for reducing losses by over 95 percent.
“I want to commend the team led by the present GMD, a team of dedicated and passionate Nigerians. If they can reduce losses drastically within such a short time, I am sure the next report will reveal huge profits for the country. We must give them our support and cooperation,” he stated.