By Els William
Geometric Power, Nigeria’s leading integrated electricity group, has raised concerns over the severe shortage of natural gas affecting its 188-megawatt plant in the Osisioma Industrial Estate, Aba, Abia State, citing its impact on the state’s economic growth.
Ugo Opiegbe, Managing Director of Aba Power, Geometric Power’s embedded electricity distribution company, stated, “Due to the grave shortage of gas, we have been forced to import 25 megawatts from the Niger Delta Power Holding Company (NDPHC) at a significant cost, just to ensure our customers receive power, regardless of the financial burden on us.”
Opiegbe further explained, “It is a supreme irony that, although we are capable of generating 141MW from our three General Electric (GE) turbines and providing uninterrupted, quality, and affordable electricity to nine of the 17 local government areas in Abia State, we are importing electricity due to severe gas constraints.”
The company noted that the Aba Ringfence requires about 90MW, which can be generated from two of its three installed turbines, each with a capacity of 47MW.
“Therefore, the 25MW from the NDPHC is like a drop of water in the ocean.
“The unreliable gas supply is affecting hundreds of thousands of our customers, particularly manufacturing firms for whose sake Geometric Power built the $800m Aba Integrated Power Project to accelerate the industrial development of Aba and its environs and serve as a model of electricity development in Nigeria, a promising nation whose growth has been hampered seriously over the decades by the absence of such basic infrastructure as reliable power”.
The Aba Power Integrated Project, the largest private sector investment in the Southeast, was commissioned on February 26 by Vice President Kashim Shettima on behalf of President Bola Tinubu.
Ogbonna Chukwueke, a former Shell executive and gas expert, explained that Geometric Power signed a 2009 agreement with Shell Petroleum Development Company (SPDC) for the supply of 43 million standard cubic feet (MSCF) of gas from its Oil Mining Licenses (OMLs) 11 and 17 in Owaza, Ukwa East, Abia State. This supply was intended for the company’s four turbines, each capable of producing 47MW.
However, Shell’s withdrawal from Nigeria’s onshore operations due to extensive oil theft, vandalism, community issues, and kidnappings led to the transfer of OMLs 11 and 17 to local operators. Unfortunately, these operators have not been able to supply even 10 million SCF daily to Geometric Power’s plant.
Geometric Power stated it is “frantically working to resolve the gas supply challenge,” and acknowledged the efforts of Vice President Shettima, Abia State Governor Alex Otti, Power Minister Adebayo Adelabu, and NNPC Group Managing Director Mele Kyari in securing a more reliable gas source. “From the look of things,” the company added, “we should be able to overcome the gas shortage within a month.”