afrol News, 29 October - After a desive call by Nigerian authorities on companies to detail their gas plan for local energy consumption, operators of a new mega power plant expected to generate 650 megawatts of electricity for energy-starved Nigeria, disclosed it had started operations early this month.

According to media report, Afam Gas and Power Project - jointly operated by Anglo-Dutch oil giant Shell, Nigerian state oil company (NNPC), Italy's Agip and France's Total - should by end of this year produce 450 megawatts. To date, some 1.3 billion dollars have reportedly been invested in the scheme, though total cost for project has not been disclosed.

"This is an extremely important project for Nigeria and the Nigerian people and we are very pleased with the way it has been delivered and with how commissioning is proceeding," reports quoted Mr Mutiu Sunmonu, managing director of Shell Petroleum Development Company (SPDC).

The first turbine at power plant based in the southern oil hub of Rivers state was reportedly fired on 11 October with next one to be commissioned early next month.

The Nigerian National Petroleum Corporation (NNPC) holds 55 percent of the project's shares and Shell has a 30 percent stake, while Total and Agip have 10 percent and five percent, respectively.

Nigerian government last month ordered oil firms to produce detailed gas production plans to boost gas supplies and ease current shortages, further directing all major oil companies operating in Nigeria to submit a detailed plan for domestic gas supply before end of October 2008.

Gas Minister, Emmanuel Odusina, said companies must set aside between 280 million and 350 million cubic feet of gas by end of year for domestic use.

"We must prioritize domestic gas supply over any LNG project, since the country needs power," Mr Odusina had said in a statement.

Nigeria, whose natural-gas reserves of 187 trillion cubic feet are world's seventh-biggest, is also Africa's most populous country and suffers from chronic power shortages.

Mr Odusin said he wanted to see plans to ensure uninterrupted domestic supply of gas for power generation and distribution in the country.

He said president Yar'Adua had expressed concern at apparent disregard by oil firms of an earlier government directive issued in April asking them for their production plans.

"Federal government's policy and regulations on gas supply to the domestic market are not up for discussions or negotiations any more," Mr Odusina said, in a statement, saying despite being issued with obligation, no company has responded with credible supply and detailed work plans.

The country of 140 million people is currently generating only 3,000 megawatts of power, out of an installed capacity of 6,000 megawatts. Parts of country go for days and weeks without power, leaving companies to rely on their own generators.

United Nations and World Bank estimate that gas flaring by oil producing firms in Nigeria wastes close to 2.5 billion cubic feet of gas.

By staff writer

© afrol News

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