Efforts to boost gas supply for power generation under the Domestic Gas Supply Obligations (DSOs) imposed on the international oil companies (IOCs) are being hampered by delays in the execution of some key gas projects initiated by the oil multinationals to power over 2,000 megawatt-capacity thermal power plants in the country, THISDAY reports.
Under the DSO regulation in the blueprint, oil companies were required to set aside a pre-determined amount of gas for the domestic market, or risk a penalty of $3.5 per million cubic feet of gas under-supplied, restricted exports, or both, as the then Ministry of Energy (Gas), which was created by the administration might decide. The Yar’Adua administration had also approved the short-term gas supply strategy proposed by the Gas Master Plan to double domestic gas availability from about 700 million standard cubic feet per day to 1,400 mmcf/d by end of 2008, and triple it to 2,050 mmcf/d by end of 2009.
However, investigations have revealed that with the scrapping of the Ministry of Energy (Gas) by Yar’Adua’s successor, Goodluck Jonathan, and the lack of commitment by the IOCs to the DSOs, coupled with their preference for the export market, delays have occurred in the execution of many gas projects that could have added 2,000MW to the national grid. Examples of such projects include the 107km Calabar-Adanga gas pipeline project, the Escravos-Lagos gas pipeline expansion project, Shell’s Bonga diversification project and the Forcados/Yokri gas project among others.