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Egbin power plant loses 480MW to gas shortage

By BusinessNews Staff on January 20, 2014

Gas shortage has continued to plaque the privatised power sector as the country’s largest power plant, Egbin Power Plc, has lost 480 megawatts of power to its inadequate supply.

The power plant has an installed capacity of 1,320MW but one of its six turbines has been down, leaving the available capacity at 1,080MW.

Inadequate gas supply, it was learnt, had further limited its output to about 600MW per day, with 480MW unutilised.

Our correspondent also gathered on Friday the output of the power plant went as low as 300MW in December due to acute gas shortage with the resultant consumers’ discomfort and complaints.

The Managing Director, Korea Electric Power Nigeria Limited, the technical partner and managers of the Egbin Power station, Mr. Gyoo Chull Yeom, who confirmed this on Friday, warned that private sector investment was being threatened by the huge gas supply gap in the country.

He said during a facility tour of the plant, “Gas is not coming and without this, the power plant cannot operate optimally. Even if you bring the most modern technology and carry out repairs, without adequate supply of gas, there will still be problem. Gas supply is very important to the Nigerian power sector because almost 80 per cent of the power plants in the country are gas-fired. Inadequate gas supply is a big problem for Nigeria. Even with the private sector investment, if there is no enough gas supply, there will still be problems.”

The new management of Egbin emerged after the recent handover of power assets to the investors.

KEPCO’s involvement in the unfolding power reforms is through a Joint Venture between Korean Electric Power Corporation and Energy Resource Limited – managers of the Egbin power station, and New Electricity Distribution Company – managers of the Ikeja Electricity Distribution Company, both members of the Sahara Group.

Yeom, however, gave a pledge that while working towards restoring Egbin to its installed capacity of 1,320MW within the year, the company planned to provide additional projected capacity of 1,350MW starting within the next three years.

At the completion of the expansion project, he said the station would have 2,670MW, with the aim of achieving a total capacity of over 10,000MW in the next decade if the demand was permitted.

He said, “Our relationship with Nigeria over the year has shown that the nation is filled with resilient and resourceful people who are driven by a spirit of entrepreneurship that ranks among the best in the world.

“Yes, there are challenges bordering on infrastructure and human capital that will require time to overcome. We will need the patience and support of all Nigerians as we work towards overcoming these challenges with innovation, commitment and determination. We see a future where Nigeria will become an exporter of power. This is possible with our collective resolve.”

Yeom foresaw that the nation would once again be the industrial driver of the region and achieve its vision 20:20 in no time.

He said, “Together, we can redefine the power sector in Nigeria and thereafter drive the socio-economic growth with a renewed passion for excellence. We are here as partners to work with you to build a future where uninterrupted power supply is obtainable in Nigeria and our great companies play leading roles in the sector across the globe. We believe in this project and we believe in you. So, let there be sustainable light; let there be collective progress.’’

Yeom described KEPCO as a company at the cutting edge of using the most recent and effective technologies to ensure sustainable, efficient and safe generation and delivery of power.

According to him, KEPCO is among the largest nuclear power exporting companies and is also involved in all forms of generation such as wind, thermal, coal, solar, mass, hydro and renewable energy.

He said, “It is our desire to work with our counterparts here using technology that is best suited to Nigeria to deliver world-class services in power generation and supply in Nigeria, and ultimately, other parts of Africa.

“Having recorded remarkable successes in the sector globally, we are delighted to work with you all to ensure we replicate similar and even better achievements in Nigeria with the help of all Nigerians and our staff in particular. With our discipline and technology, we are confident that our partnership here in Nigeria will produce records that will be notable globally.”

[Punch]

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