The Minister of State for Petroleum Resources, Ibe Kachikwu has disclosed that the Federal Executive Council has approved the sum of $64 million for power supply to communities around Escravos area in Delta State.
Kachikwu made this disclosure after the FEC meeting chaired by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
The approved fund, according to the Minister, is expected to halt the N18 million spent monthly by the Nigerian National Petroleum Corporation (NNPC) to supply power to the area.
Recall that the NNPC had announced the completion of repairs of Escravos pipeline. In addition, gas supply to power generating companies has been restored. The Federal Ministry of Power, Works and Housing had in a statement released last week promised to restore power as soon as possible.
Shutting down of pipeline meant that several power stations in the country had to be shutdown. They include the Egbin 1,320MW, Olorunsogo NIPP 676MW, Olorunsogo 338MW, Omotosho NIPP 450MW, Omotosho 338 MW, and Paras 60MW power stations.
The sudden loss of generation due to an interruption in gas supply from these stations caused the national transmission grid to trip off around 20:20 on 2nd January 2018, throwing a large section of the country into darkness. The national transmission grid is owned and operated by the Transmission Company of Nigeria (TCN).
Most of Nigeria’s power generation is from thermal power stations that require gas for fuel. The gas is produced by oil and gas companies overseen by the Ministry of Petroleum Resources. The gas is delivered to the power stations through pipelines owned and operated by Nigerian Gas Processing and Transportation Company Limited (NGPTC), a subsidiary of Nigerian National Petroleum Company (NNPC).
Escravos is located in Warri South-West Local Government Area of Delta State. Communities likely to benefit from the provision of power supply include Ugborodu, Ogidigben, Jaghala, Madagho and Ajidaibo.
Escravos also hosts two major multinational oil companies, Shell and Chevron. While Shell has three flow stations (Sagara, Otumara and Ogidigben), Chevron has its flow station offshore.