Gas supply not responsible for low power generation, NNPC insists

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The Nigerian National Petroleum Company Limited has dismissed suggestions that constraints in its gas transportation network are contributing to the decline in electricity generation, insisting that its pipelines remain available to deliver gas to power plants across the country.

The national oil company said its operational records did not indicate any transportation-related constraints within the network operated by its subsidiary, NNPC Gas Infrastructure Company Limited, that could explain the current drop in power generation.

The position comes amid a disagreement over the factors behind the worsening electricity supply situation, after the Nigerian Independent System Operator attributed the decline in generation partly to limited gas availability and reduced water inflows to hydroelectric power stations.

In a statement issued on Saturday in Abuja by its Chief Corporate Communications Officer, Andy Odeh, NNPC said its clarification concerned specifically the operational condition of its gas transportation infrastructure.

It, however, maintained that gas production had increased by about 10 per cent in 2026 so far, as the company pursued the Federal Government’s gas development and monetisation agenda.

“NNPC Limited confirms that gas transportation network operated by its subsidiary, NNPC Gas Infrastructure Company Limited, remains available to support deliveries to power generating stations Nationwide without any constraints. NGIC’s operational records do not indicate transportation-related constraints within its network that explain the current decline in electricity generation.

“NNPC Limited is focussed on actualizing the Federal Government’s gas development and monetisation agenda which has led to about 10% growth in gas production volumes 2026 year to date. Gas supply availability is therefore not a challenge as NNPC remains committed to supporting efforts to improve electricity generation through safe, reliable and efficient gas supply and transportation,” the statement said.

The company added that the availability of its transportation network did not necessarily establish that all other stages of the gas-to-power chain were functioning optimally.

It said, “Gas production, commercial supply arrangements and actual deliveries to individual power plants must be assessed separately from the availability of transportation infrastructure.”

NNPC also identified the operational readiness of generating units, maintenance schedules and actual gas offtake as factors that should be considered in determining why electricity generation had declined.

“A comprehensive assessment must also consider the availability and operational readiness of generating units, plant maintenance schedules and actual gas offtake. These factors determine whether gas supplied can be converted into electricity. They should be verified alongside gas supply data to establish the causes of the shortfall,” it added.

The company called for a coordinated review involving gas suppliers, transporters, power generators and NISO to establish the specific constraints affecting electricity generation and determine the necessary interventions.

The disagreement comes as Nigeria continues to grapple with inadequate electricity generation and frequent reductions in supply to distribution companies. Gas-fired power plants account for a substantial share of the country’s grid electricity, making reliable gas production and delivery critical to improving supply.

While NISO’s November 5 clarification identified limited gas availability and reduced hydroelectric output as factors behind the decline, NNPC’s statement focused on the condition of its own transportation network and did not provide figures on actual gas deliveries to individual power stations.

The company said accurate reporting across the gas-to-power value chain was necessary to address the challenges and sustain public confidence.

It added that it remained committed to developing dependable energy infrastructure and working with other industry stakeholders to translate Nigeria’s gas resources into more reliable electricity for consumers.

Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.

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