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…Drive to Global Excellence
NNPC
COO Gas & Power, NNPCOctober 2020
COO Gas & Power, NNPCOctober 2020
COO Gas & Power, NNPCOctober 2020
Meeting of GACN 2020
South East Gas Utilization
Forum:
Improving Steady Supply
of Power in the South East
Presentation Outline
The GACN Gas Forum
NNPC Gas and Power Business Priorities
Natural Gas Production and Utilization
Nigeria Power Sector Overview
NNPC Power Initiatives
Improving Power Supply in SE Region
Conclusion
3
The GACN Gas Forum
It is commendable that this gas utilization forum, organized by the Gas Aggregation
Company of Nigeria (GACN), is organized in such time that natural gas play a key role
in economic development. In order to achieve its business mandate, GACN is
galvanizing a healthy business collaborations amongst the major stakeholders in the
gas sector to ensure:
The successful implementation of the Nigerian Gas Master Plan (NGMP)
commercial framework;
Efficient monetization of the abundant natural gas resources;
Adequate supply of Gas to the strategic sectors of the Domestic Market to
stimulate natural gas utilization in-country; and
The achievement of the much-desired industrial growth and national
development through domestic gas utilization, among others.
Thus, it is worthy to note that the NNPC Gas and Power Directorate Business Priorities
have a strong Business NEXUS with the mandate of GACN
4
Deliver Gas Master Plan Infrastructure Blue
Grow domestic gas utilization to 5bcfd by
2022
Develop 5GW Power Generation by 2022
Explore Transmission partnerships/investments
to unlock evacuation & power improvements
Deliver NLNG T7 by 2024
1
2
3
4
5
NNPC Top 5 Gas & Power Key Business Priorities
5
Domestic Gas Demand vs Supply Profile (2020-2030)
Base case domestic gas demand will grow from the current 3.8bscfd to a peak of 7.4bscfd by 2025. However, based on all
known domestic gas supply projects, gas supply is expected to grow from 2.2bscfd by end 2020 to 5bscfd by 2023 and further
ramp up to match demand by 2025 if all the gas supply projects are implemented as planned
8
Nigeria Power Sector Issues
1. Nigeria ranks poorly in grid-based
electricity consumption (126kWh
per capita) some African countries
like Ghana and South Africa at
361KWh and 3926kWh respectively.
2. Given its GDP, Nigeria’s electricity
consumption should be 4-5x higher
than where it is today based on
regional trends as reflected in the
next slide using Ghana and South
Africa as comparators.
3. Today, ~120million Nigerians are
without access to electricity, and
those that do have access (45%),
face extensive power outages
4. Nigerians get a significant portion
of their electricity from private
generators at a higher cost (USD
0.35/kWh) than grid-based (USD
0.08/kWh) power.
5. The Nigerian power sector involves
a regulator; a trading company
and three main players – Nigerian
Electricity Regulatory Commission
(NERC), Nigeria Bulk Electricity
Trader (NBET), generation
companies (Gencos), Transmission
Company of Nigeria (TCN), and
distribution companies (Discos)
6. Nigeria has about 13,522 MW
installed capacity, but given
various inefficiencies in the sector,
effectively only about 5,200 MW is
generated, about 4,500 MW
transmitted, and about 3,400 MW
distributed
7. The sector currently struggles with
financial viability as there are
significant collection losses and
cash flows are not fully passed
through from one playerto another
9
GW, average Jan-Aug 2018
Transmission DistributionGeneration
Commercial
and
collection
losses
Technical
losses
Capacity
distributed
3.3
1.1
2.2
-85%
Capacity
paid for
13.5
3.9
Capacity
not being
utilized
4.1
0.2
Installed
capacity
Capacity
transmitted
Operational
Capacity
9.4
Transmission
losses
Non-available or non-
operational capacity
Nigeria power sector energy flow
0.6
Nigeria Power Overview Cont’d – Power Generation
SOURCE: Updated Generation Stats, TCN NOR Reports, UDI database.
Power Transmission & Distribution Liquidity Issues
Generation is constrained by:
10
Status of Gas Supply to Power Plants
- January 2020 to Date
10
Okpai
Azura
Trans
Amadi
Paras
Rivers
IPP
Omotosho
NIPP
Olorunshogo
NIPP
Geregu
NIPP
Sapele
NIPP
Plant with Gas Constraints
Plant with Power Evacuation Issues
Plant without firm GSAA
50% and below Gas Supply
50% - 80% Gas Supply
80% and above Gas Supply
Afam
IV-V
Plant with available units on bar
Transcorp
Gas supply to power is constrained mainly due to power evacuation challenges. All available thermal
power plants have power evacuation challenges.
11
FCT
LAGOS
KADUNA
KANO
AKWA
IBOM
450MW-Agura
900MW-Kaduna IPP
1350MW-Kano IPP
576MW-QIPP
• In 2019, FGN Launched Siemens/FGN Presidential Power Initiative (PPI) structured in three phases:
- Phase 1 – Targets to increase system’s end-to-end operational capacity from ~4.5MW to 7MW by 2021
- Phase 2 – Targets to resolving outstanding Transmission & Distribution Network bottlenecks to enable full
utilization of 11MW of existing generation;
- Phase 3 - Targets the expansion of Nigeria’s power grid to 25 GW by 2025 and beyond.
• Planned Power Tariff Improvements in 2020.
• Planned Power Revenue Collection Enhancement to improve industry Liquidity, amongst others.
Summary of FGN/Siemens PPI Intervention Program
Power generation projects already being planned by the
Nigerian National Petroleum Corporation (NNPC) are as
follows:
a. Abuja: 1,350 MW(Combined Cycle Power Plant)
b. Kaduna: 900 MW (Combined Cycle Power Plant)
c. Kano : 1,350 MW (Combined Cycle Power Plant)
d. Agura : 750 MW (Combined Cycle Power Plant)
e. Qua Iboe : 560MW (Combined Cycle Power Plant)
f. SEEPCO KGL: 1050MW (Combined Cycle Power Plant)
g. Obite: 420MW (Combined Cycle Power Plant)
h. Imo: 420MW (Combined Cycle Power Plant)
NNPC is latching into the FGN/Siemens PPI Program to accommodates all the proposed 5GW of the New
NNPC Power into the National Grid
1350MW-Abuja IPP
Delta
1050MW-Kwale IPP
Imo
420MW-Obite IPP
Nigeria Power Overview Cont’d – Current Interventions
420MW-Imo IPP
12
The NNPC & PERTNERS Power Initiatives
Existing Power Plants:
NNPC, with its Joint Venture partners have been playing key roles to
improve the Nigerian power sector, including the South East Region
NNPC/NAOC JV established a 480MW phase I IPP at
Okpai in Delta State
The Power Plant is the most reliable IPP in Nigeria
The IPP produces an average of 3 million MWh per year
Accounts for about 12% of total energy generated per
year nationwide
The Okpai 450MW Phase II that will ramp-up power to
~1000MW is at advance stage of completion
480MW Okpai Phase 1 JV IPP
450MW Okpai Phase 2 JV IPP
650MW Afam VI JV IPP
Similarly
NNPC/SPDC JV established a 650MW Afam VI IPP in River State
The IPP is the 2nd largest contributor to grid generation
Largest CCGT plant on Grid
About 22TWh (Trillion watt-hour) Energy has so far been delivered
to Nigerian National Grid by the IPP
Okpai
Phases 1&2
13
Existing Okpai 1&2 and Afam VI IPPs:
Both power plants constitute about 40% of the national power supply, including the South East.
Both power plants significantly service the franchise areas of Enugu Electricity Distribution Company
(EEDC), and aimed at improving the energy supply level to the south East region, namely; Abia, Anambra,
Ebonyi, Enugu and Imo states.
The Okpai 450MW Phase 1 IPP supplies Power to Onitisha, Anambra State and its Environs within the South
East Region vide the 330 kV Overhead Transmission Line – Extension of Onitsha-Obosi Sub-Station.
The Second Phase - Okpai 450MW Phase 2 IPP has been completed and ready to inject at least additional
320MW extra capacity to the national grid vide Okpai-Onitsha Double Circuit (DC) TLine by Q4 2020.
This will translate to more power availability for Nigerian homes within the South East Region.
New Power Plants Investments:
The additional over 5000MW IPP being developed by NNPC with its JV Partners, across
the Country, comprises:
- Qua-Iboe (540MW) IPP in Akwa Ibom State;
- Obite (420MW) IPP in Rivers State; and
- Imo 420MW IPP
Also, the Corporation is currently exploring business collaborations with the Transmission Company of Nigeria
(TCN) for funding of critical power evacuation infrastructure that will enable adequate geographical spread of the
total power generated, including the SE Regions.
NNPC Efforts in Improving Power Supply in South East Region
All targeted to be installed to improve power supply in the
South East, amongst other Regions.
14
Okpai is likely well-located to benefit from the Eligible Customer
ProgrammeNigeria Distribution Company Territories
Lagos
BayelsaRivers
ImoAbia
Akwa
Ibom
Adamawa
Bauchi
Gombe
Kaduna
Fct
Nassarawa
Plateau
Taraba
Benue
Cross
River
Enugu
EbonyiAnambra
Delta
Edo
Kogi
Oyo
Ogun
Osun Ekiti
Ondo
Kwara
Niger
Sokoto
KebbiZamfara
Katsina
Kano
YobeJigawa
Borno
Kaduna Distribution company
Kano Distribution company
Yota Distribution company
Jos Distribution company
Eko Distribution company
Benin Distribution company
Port Harcourt Distribution company
Enugu Distribution company
Abuja Distribution company
Ibadan Distribution company
Ikeja Distribution company
Potential Eligible Customer catchment area
Manufacturing,
Automotive
Manufacturing,
Markets
Entertainment,
hospitality
Potential concentrations of Eligible Customers
Examples of potential customers
▪ Manufacturing e.g., ABInBev brewery plant
▪ Automotive e.g., Innoson Motors
▪ Significant commercial market centers
15
The Nigeria Electricity Supply Industry is challenged with transmission and distribution constrains with
current power generation capacity estimated at circa 13.5GW, but only about 4GW can barely be
transmitted due to inadequate evacuation and distribution infrastructure.
Thus, NNPC, as Enabler Organization, is implementing power business initiatives aimed at
repositioning the Corporation energy company, with a sizable power portfolio thereby stimulating
positive economic growth.
NNPC is desirous of collaborating with EDC in unlocking the available power from Okpai and Afam to
stimulate the utilization of natural gas in the Nigerian domestic market, for economic growth and
national development, of the country in particular the South East Region.
NNPC is looking forward to a potential collaboration with Enugu Distribution Company towards
supplying power to eligible off takers and markets in the eastern region to utilize the full potential of
Okpai 1 & 2 as well as the Afam JV IPP.
Conclusion