The House of Representatives Committee on Gas Resource has expressed concern over the lack of proper alignment between the gas and power sectors of the economy which it said may make the National Integrated Power Plant (NIPP) to run into a hitch.Members of the committee, led by the committee chairman, Honourable Bassey Ewa, made this observation in Warri on their fact-finding visit to the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
The NIPP was introduced by former President Olusegun Obasanjo to ‘fast track’ the project involving seven power stations to address the twin issues of low power generation and gas flaring in the Niger Delta region.
The committee members, who demanded to see the documents of NGC with regard to its relations with oil and gas companies, including major consumers, said it was unfortunate that a company like NGC had no commercial and legal framework for distribution and marketing of gas produce by multinationals.
This came against the background that NGC is saddled with huge debt profile occasioned by indebtedness to it by its major consumers like the Power Holding Company of Nigeria (PHCN).
According to Ewa, the company would continue to have huge debt profile if issues of commercial framework were not sorted out properly.
Deputy Chairman of the committee, Honourable Alphonsus Irona, said, “there’s no proper commercial and legal framework between the gas sector and the power sector so as to align properly. Now we have IPP project being constructed all over the country without taking supply of power into consideration which means the plants are ab initio planned to fail.”
Speaking earlier, the Managing Director of NGC, Saidu Mohammed, said that PHCN, which is a major consumer of gas supply by NGC had been debited of sums running into billions of dollars.
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