BEVERLY HILLS, March 30, (THEWILL) – The Nigerian National Petroleum Corporation, NNPC, on Wednesday revealed that it has set in place a reform geared towards transforming itself from an oil and gas company into an integrated energy outfit with interest in power generation and transmission.
It noted that the power transmission capacity of the country was inadequate, pointing out that this was the major reason for the poor supply of Electricity nationwide.
According to a statement by the corporation’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, the Group Managing Director, NNPC, Dr. Maikanti Baru, stated this at the 53rd International Conference and Exhibition of the Nigerian Mining and Geosciences Society in Abuja.
He said the corporation has identified opportunities in the power Sector and was ready to take advantage of them to transform from being a gas supplier to the power sector into a major player in the industry.
The NNPC boss stated that the corporation was already working on a project to generate four megawatts of electricity, while also exploring the possibility of investing in the transmission segment of the power sector.
He explained that the decision of the corporation to diversify into the power sector was hinged on the need to bridge the huge energy gap in the Nigerian market.
Baru said that contrary to the impression that the poor power situation was caused by inadequate gas supply, the real problem was insufficient transmission capacity.
He said there was enough gas to generate 8,000MW of electricity but the transmission grid could not support such quantum of power without complications.
The GMD also defended the Federal Government’s plan to transform illegal refineries in the Niger Delta into legal entities for proper integration of the youth in the region.
He argued that getting the youth to form consortia to set up 1,000 barrels per day modular refineries would get them off criminality and create jobs.
In the upstream sub-sector, Baru said his goal was to accelerate frontier exploration and grow the crude oil reserve to 40 billion barrels from the current 37 billion.