Lack of alignment between some of the newly constructed Nigerian Independent Power Plant (NIPP) and the Nigeria Gas Company (NGC) over gas supply, has been identified as main cause threatening electricity projects in the country. The revelation was made when the House Committee on Gas visited the NGC on a fact-finding mission.
According to the Managing Director of the NGC, Saidu Mohammed, several of the new power plants were surprisingly designed and built without factoring in the source of gas supply to run them. He said talks with NGC on the supply of gas only started after some of the plants had been completed. Mohammed told the House committee members that those were some of the unique gas supply hiccups the gas firm had had to handle.
He added that the NGC was handicapped by lack of infrastructure, huge debts by the Power Holding of Nigeria (PHCN), lack of proper alignment between the gas and power sector. The House panel, led by the Chairman, Ewa Bassey, said the members were in Warri as part of their oversight functions. Bassey explained that the committee was interested in finding out budgets made to the NGC and how such were implemented, on-going projects being handled by the gas firm, their locations and costs.
“We want to know if the NGC is making profit and how that is accounted for. We want to be in the know how the NGC is prepared to reduce gas flaring by 2012 the date set aside for ending flaring,” Bassey said. He added that the house was not comfortable with what they saw the last time the gas firm came to Abuja to defend its budget. The House Committee was miffed that the issue of PHCN indebtness was cropping up again, compelling members to query absence of contractual agreement on gas supply between the gas firm and PHCN.