Engr. Olufemi Dosumu FNSE August, 2016 The Petroleum Industry, Gas and Power Supply in Nigeria (0307) A Paper Delivered at the 25th COREN Engineering Assembly in Akure, Ondo State, Nigeria By   Engr. Olufemi Dosumu FNSE August, 2016

Abstract  Power supply is considered to be the most urgently required infrastructure amongst Nigerians.  While Natural Gas supply is the most widely used in the world's energy production, this is not the case in Nigeria despite the abundant deposit of natural gas. This paper examines the reasons for inadequate gas supply and the corresponding inadequate power supply. The challenge posed by corruption, current government policies, economic instability, inadequate funding, militancy in the Niger Delta region and economic instability in the country are also discussed. Recommendations are presented on how the identified issues may be resolved.

1.0 Introduction The level of development of a nation is directly linked to the state of her infrastructure development. Power supply is at the top of infrastructure hierarchy and its impact on the social and economic wellbeing of the citizens cannot be over emphasized. A reliable power supply is therefore a necessary condition for prosperity .

Nigeria with a population of about 170 million people presently generates 5465MW at full capacity . With the parlous state of power infrastructure in the country, the direct link of the poor state of power supply to the inadequacy in gas supplied by the petroleum industry is all too evident.  Power supply is essential for the survival of private and commercial entities. In the absence of a reliable public power supply, individual and corporate bodies are compelled to generate their own power supply from diesel or petrol powered generators with the attendant problem of environmental pollution among others. Stakeholders in the power supply chain in Nigeria include the Generation Companies (GENCOS), Distribution Companies (DISCOS), The Transmission Company of Nigeria (TCN), The Regulatory Authority Nigeria Electricity Regulation Council (NERC) and the consumers.

2.0 The Petroleum Industry and Gas Supply to Power Plants Advantages High efficiency Environmental friendliness Familiar technology Absence of waste

Disadvantages Competition with the fertilizer industry Storage Safety

Operators 2.1 West African Gas Pipeline (WAGP) 2.2 NLNG www.africanspotlight.com 2.1 West African Gas Pipeline (WAGP) 2.2 NLNG 2.3 Proposed Dangote Integrated Refinery www.africanspotlight.com

3.0 Issues Affecting Gas Supply to the Power Plants 3.1 Corruption 3.2 Pipeline Vandalism 3.3 Government Policies 3.4 Power Evacuation

4.0 Recommendations 4.1 Privatization in the oil industry 4.2 Funding and additional investments 4.3 Gas and Power Producing Communities 4.4 Government Policies and Local Content Act 4.5 Gas to Power Master plan: Value Engineering and the role of Engineers 4.6 Benchmarking and Lessons from other countries 4.7 Sustaining The NSE Energy Report Card

5.0 Suggestions for future Discussions   Legislative Framework and Investment in Infrastructure  The Role of Technical Education in National Development  The Need for Local Content in Sustainable National Development

6.0 Conclusion The various factors that inhibit the availability of gas for the power industry were presented in this paper. These factors include inadequate investment in the gas pipeline infrastructure, militancy in the Niger Delta region, and unstable government policies. The suggestions in this paper offer potential benefits to the Gas to Power projects in terms of the practicality, short implementation period and cost effectiveness. Suggestions were also offered on how further discussions may enhance improvement in gas supply and power production. The implementation of these recommendations would go a long way at ameliorating some of the current economic problems that are being faced in Nigeria.

Thank you