Energy Briefs

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POWER generation in the country has dropped further following the shutdown of Afam VI Power Plant which generates 624 megawatts by Shell Petroleum Development Company. Shell said that the power plant was shut down due to gas shortage arising from the closure of the Trans Niger Pipeline due to crude oil theft.

The pipeline was shut last month following a fire incident. It was reopened after six days only for SPDC to shut the pipeline again, on July 11 due to a leakage. The shutdown of the TNP system, comprising the 28-inch and 24-inch streams, resulted in the deferment of 150,000 barrels of oil per day and huge economic losses to the Federal Government.

Tony Okonedo, manager, corporate media relations, SPDC, said the shutdown was as a result of non-evacuation of condensate from the Okoloma Gas Plant, which supplies Afam VI Power Plant with feed gas. “SPDC had to shut down the Okoloma Gas Plant as it could not continue to produce gas without the evacuation of condensate. Although Afam VI Power Plant has capacity to produce 624 MW it can only supply 105 MW to the national grid due to reduced gas volume at the time of shutdown,” he said.

According to him, SPDC is deeply concerned about the negative impact of incessant crude oil theft on lives and the environment in the Niger Delta, and also the loss of electricity to businesses and households across the country. He said the total daily loss from the TNP shutdown alone added up to about $15m.

He explained that the latest leak on the TNP occurred on the 24-inch stream at Owokiri on July 11, adding that a joint investigation visit of government agencies, community and civil society representatives as well as SPDC personnel found that unknown persons had installed a six-inch valve on the facility. Okonedo said SPDC had repaired the leak and was working to remove other crude theft points that were discovered in the process. The 28-inch TNP had earlier been shut-in for removal of similar oil theft connections with the company striving to repair the TNP as quickly as possible and restore operations in order to enable power generation to resume at Afam VI.

Ex-Militants’ Pipeline Protection Contract

THE federal governor has awarded a multi-million naira pipeline protection contract to former Niger Delta militants, saying that the action was part of the lifeline offer under the Presidential Amnesty Programme. Kingsley Kuku, special adviser to the president on Niger Delta affairs, made the announcement while, appointing Tamarabebe Mologi, as the new head of department in charge of post-amnesty training.

Kuku explained that the choice of ex-militant leaders such as Tompolo, Ateke Tom, Boyloaf and others was to ensure the success of the jobs, as only the natives of the Niger Delta were well placed to assist security agencies in combating oil theft and the tampering with facilities.

He also said that before the signing of the amnesty deal, the federal government had accepted to provide appropriate means of livelihood for the ex-warlords as a means of encouraging them to prevail on their supporters to maintain peace. “It is important that we stop deceiving ourselves that anybody can protect oil pipelines better than the natives of the oil communities where the pipelines traverse. I believe that only the people of the communities where the pipelines crisscross their backyards can conveniently work with the security agencies to stop oil theft and protect the facilities,” he said.

Compiled by Anayo Ezugwu

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