The Lagos State government is in discussion with the Federal Government through the Department of Petroleum Resources (DPR) – Nigeria’s oil and gas industry regulator, to get approval to take all the gas produced from Aje field located offshore Lagos.
A source in the Ministry of Petroleum Resources who requested for anonymity told The Nation that the discussion is progressing well but couldn’t confirm whether the state would be able to get the government’s endorsement for its request.
According to the source, Lagos wants to take all the gas produced from Aje field to generate power for residential, commercial and industrial electricity consumers. However, he didn’t give further details on the transaction
Lagos State Governor, Mr. Akinwunmi Ambode had announced that the state targets 3000 megawatts (Mw) generation capacity to be able to sufficiently meet the power consumption requirements of the state. He said the quest to achieve energy security for the nation can no longer be left to the Federal Government to address alone, adding that his government aspires to give the state 24 hours power supply by 2022.
He said the reason Lagos embarked on the initiative was that it believes strongly that if the power problem is solved in Lagos, it is technically solved in the whole of the country.
“The problem of power in Nigeria is the problem of transmission and that is the truth. We have generating companies and we have distributing companies and they say power is in the hands of the private sector but we know technically that that is not totally true. We also know that transmission is hundred per cent owned by government,” he said.
Besides, out of the 3000Mw envisaged by 2022, the governor said 350Mw would be delivered by the first quarter of next year, additional 850Mw by the last quarter of 2018, and the balance of 1,800Mw not later than third quarter of 2022. So the state needs a lot of gas to be able to achieve production of such power production, he said.
Also, the state Commissioner for Energy and Mineral Resources, Olawale Oluwo told The Nation on the sidelines of the inauguration of the National Executive Council members of the Oil and Gas Trainers’ Association of Nigeria (OGTAN) in Lagos, where he represented the governor, that the state government just established an integrated oil and gas firm that will play across the entire oil and gas value chain, which may involve a petrochemical plant that consumes a lot of gas.
He said Ibile Oil & Gas Corporation, the business arm of the Lagos State oil and gas operations, has concluded the setting up of its structures and has gone into marketing of the new oil firm for operation and partnerships. The oil firm will play in all the oil and gas value chain. They are into the downstream, midstream and upstream. They have been mandated to freely invest anywhere in the world and intervene in any area of business. They have put their structures and strategies in place.
“Currently they are moving into business development, they are marketing. They are doing a front end work and sometime later this year they will go into major projects,” he said.
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