Nigeria calls for fast repair of strategic Shell terminal
Speaking over the weekend when he visited the Forcados Terminal in Delta State, Vice President Osinbajo accompanied by Governor Ifeanyi Okowa, said President Muhammadu Buhari is concerned about the damage done to the terminal in February and asked him to visit and assess the situation which has been responsible for the recent drop in electricity supply in the country.
The president is equally concerned that the gas projects under the disposal of Shell meant to beef up domestic supply of gas in the country needs to be speedily completed.
Osinbajo who met on Friday with top officials of Shell that runs the terminal and senior NNPC officials after they flew over the location of the terminal told the officials "what is going on here affects the Nigerian people and the economy," referring to the loss of gas supply to power plants and the loss of potential foreign exchange earning arising from the inability to produce over 250,000 barrels of oil per day, due to the damage done to the terminal.
"The damage done to Forcados affects our oil earnings but also as important is the power aspect. It is a major source of gas, about 40% of our gas supply is affected leading to the problem of power supply in the country," the Vice President said to Shell officials led by Country Chairperson, Osagie Okunbor and NNPC officials led by Bello Rabiu, Upstream CEO.
Osinbajo said at a point few months ago power supply in the country had peaked at an unprecedented 5000MV, but now has dropped significantly including instances of system collapses, showing that this is "a real problem."
Experts say currently, gas production into domestic network in the country has fallen to 601mmscf/d from usual 1.1bcf/d.
The implication is that the country is now loosing about half a billion cf/d, which roughly accounts for about 2000MW of electricity. ■