Powergas Africa has advised
manufacturing firms and residential estates seeking access to natural
gas to switch to Compressed Natural Gas following the current disruption
in gas supply owing to the activities of pipeline vandals.
As a result of the recent rise in
pipeline vandalism, power generation and gas supply to industries have
been significantly impacted, escalating manufacturing costs as
industries are forced to switch back to more expensive and polluting
diesel-fired power generation, the company said in a statement on
Friday.
“Unfortunately, the attacks on the
pipelines are coming at a time when the Nigerian power sector was
gaining momentum. But CNG is a good interim solution,” it noted.
According to the firm, CNG still offers
significant cost saving compared to diesel – the fuel price alone is
about half of diesel, adding that natural gas was also a much cleaner
fuel than diesel, reducing maintenance costs and wear and tear on
industrial machinery.
At an energy conference, the Chief
Executive Officer of Powergas, Deepak Khilnani, reiterated the firm’s
commitment to supplying natural gas via ‘virtual pipeline’ to industries
as an alternate and cost-effective source of power generation.
“We understand the difficult market
conditions for industries and national power generation – both the
economic uncertainty coupled with the current gas crisis. Powergas is
fully committed to finding power and gas solutions and is continuing to
invest in new off pipeline compression and liquefaction plants to meet
additional demand,” Khilnani added.
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