The Nigerian National Petroleum Company Limited (NNPC) has rejected claims that operational constraints within its gas transportation network are responsible for the decline in electricity generation across the country.
The national oil company maintained that its gas pipeline infrastructure remains available to transport supplies to power generation companies, insisting that its operational records do not indicate any transportation-related bottlenecks capable of explaining the current reduction in electricity output.
The clarification comes amid growing concerns over Nigeria’s worsening electricity supply situation and disagreements among industry stakeholders over the factors responsible for the decline in power generation.
The Nigerian Independent System Operator (NISO) had attributed the reduction in electricity generation partly to limited gas availability and reduced water inflows into hydroelectric power stations, highlighting the supply-side challenges confronting the country’s electricity industry.
However, NNPC said its position was specifically based on the operational condition of its gas transportation infrastructure, which is managed through its subsidiary, NNPC Gas Infrastructure Company Limited.
In a statement issued on Saturday in Abuja, the company’s Chief Corporate Communications Officer, Andy Odeh, said its assessment did not identify transportation-related restrictions within the network that could account for the decline in electricity generation.
The company’s clarification seeks to distinguish between the availability of pipeline transportation infrastructure and the actual supply of gas to power plants, two separate components of the country’s gas-to-power value chain.
While pipelines provide the infrastructure required to move natural gas from production and processing facilities to power plants, electricity generation also depends on adequate gas production, commercial arrangements, payment obligations and the operational readiness of generating facilities.
The disagreement comes at a time when unreliable electricity supply continues to impose significant costs on households, manufacturers and businesses, many of which rely on alternative energy sources to sustain their operations.
Gas-fired power plants account for a substantial share of Nigeria’s electricity generation capacity, making the availability and transportation of natural gas critical to improving grid performance.
The latest exchange of positions further underscores the need for better coordination among gas producers, pipeline operators, power generation companies and electricity market institutions to address supply constraints and improve the reliability of the national grid.
