Attacks on Escravos threaten power supply

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The bombing of Chevron Escravos export pipeline in Warri, Delta State which supplies gas from Escravos region to Egbin power station in Lagos may threatened power supply in the country as it may constrain gas supplies.

National Daily gathered that if repair works are not completed immediately to the critical infrastructure, power supply may be threatened.

Analysts fear this may trigger a rash of attacks on oil and gas infrastructure as militant groups struggle for prominence. It could also scuttle talks scheduled for October 31 between the Nigerian government and militant groups and further endanger Nigeria’s 2017 budget projections.

National Daily gathered that the affected 439 kilometre Escravos-Lagos Pipeline System (ELPS) which supplies gas from Escravos region of Niger Delta area to Egbin power station near Lagos, is managed by the Nigerian Gas Company Limited.

The Chevron operated Escravos Gas Plant within the terminal has a capacity for 680MMcf/d . Other pipelines in the export terminal include Odidi gas plant operated by Neconde, Utorogu gas plant run by NNPC and Seplat’s Oben gas plant.

A competition for supremacy between the Niger Delta Greenland Justice Mandate (NDGJM) who has rebuffed talks and has been actively carrying out attacks and the Niger Delta Avengers who has cooled off on attacks may yet become tricky to handle.

“The NDA may be scared of losing its title as the Delta’s most powerful militant group, and the most recent attack may have been designed to remind the government and Nigeria and general that it is still capable of launching significant assaults.

Accordingly, there is the danger that the NDA and the NDGJM may engage in a spate of tit-for-tat violence as they battle for superiority, and it is essential that the Abjua government seek to negotiate with the NDA post haste,” said Doogan.

Similarly, the bombing has also cast doubts on Nigeria’s ability to maintain production output it recently negotiated with the Organisation of Petroleum Exporting Countries (OPEC) in Algiers that could help fund the 2017 budget.

At the last OPEC meeting, members agreed to reduce output to a range of 32.5-33.0 million barrels per day from a current output estimated at 33.24 million bpd to reduce a supply glut that has cut prices by more than half of 2014 levels.

 

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