Nigeria loses N470m daily to attacks on pipelines – Fashola

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Eromosele Ebhomele
Babatunde Fashola, Minister of Power, Works and Housing
Minister of Works, Power and Housing, babatunde Fashola, late Tuesday revealed that the attack on the Nigeria Gas Company’s pipeline connected to Chevron Nigeria Limited’s facility at Escravos at the weekend, is costing the country a whooping N470 million daily.
This is as security agencies intensify the search for culprits behind the act.
In a statement signed by Hakeem Bello, the media aide to Fashola, the attack on the pipeline will impact negatively on the Olorunsogo NIPP plant with 600 megawatts capacity, as well as 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 …Read More

Source:: PM Newspaper