The Federal Government has announced that it is losing a huge sum of N470 million daily following the militant’s attack on the Escravos gas pipelines in the Niger Delta last weekend.
Besides, the repairs of the pipelines would cost the government N120 million to function again.
In a statement by the Special Adviser to the Minister of Power, Works and Housing, Hakeem Bello, the damage done to the pipelines would have far reaching effects on the power situation in the country.
The statement read: “As security agencies intensify the search for culprits behind the act, it has been established that the weekend’s attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos, will impact negatively on the Olorunsogo NIPP plant (capacity 600MW), and other Power Plants.
“The sabotaged gas pipeline which contributes to the Escravos Lagos Pipeline System (ELPS) has led to a loss of 160mmsfcd of gas daily. At a cost of $2.50 per thousand scf, this loss means about $400,000 loss to the country on a daily basis (N78, 800,000 daily) in gas volume. This is in addition to losses to be incurred daily from affected Power generation ($1,988,223 or N391, 680,000 daily). The total daily loss to the country is therefore estimated at N470, 479,931. Repairs of the damaged pipeline is estimated as costing ($609,137 or N120, 000.000).
“The real sector of the economy has also been counting its losses as some cement companies around Olorunsogo like Ewekoro and Ibese are also affected.
“The latest incident has occurred just as the Federal Government through the Ministry of Power, Works and Housing and the Ministry of Petroleum Resources, along with allied agencies has been making concerted efforts to improve gas supplies to the Power Plants. Such efforts led to previously offline plants like Ihovbor and Sapele coming back online and the subsequent output making up for the loss in power. The pipelines are being actively monitored for further attacks or other unforeseen impacts.
“Available records show that six incidences of vandalism from December 2014 to February 2015 which affected the Trans Forcados Pipeline (at Oben, Sapele, Oredo) and Escravos Lagos Pipeline System (CNL) led to a loss of 1,100 MMscfd. According to industry experts, a loss of 200 MMscfd is equivalent to a Power reduction of 700MW.”