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NASS summons minister over N13bn PHCN gas debt

Posted by From JAMES OJO, Abuja on 2008/04/17 | Views: 580 |

NASS summons minister over N13bn PHCN gas debt


The Joint-Committee on Gas of the National Assembly has summoned the Minister of Power, Hajia Fatimah Ibrahim and the Coordinator of the Power Holding Company of Nigeria (PHCN), over the N13billion debt owed the Nigerian Gas Company [NGC] by the power ministry for gas supplied to power plants since 1990.

The Joint-Committee on Gas of the National Assembly has summoned the Minister of Power, Hajia Fatimah Ibrahim and the Coordinator of the Power Holding Company of Nigeria (PHCN), over the N13billion debt owed the Nigerian Gas Company [NGC] by the power ministry for gas supplied to power plants since 1990.

The joint-committee, co-led by Senator Osita Izunaso and Hon Igo Aguma, also stopped the proposed road show on gas potential in the country planned for London by the ministry, describing it as a waste of public fund.

Summoning the minister and PHCN, Senator Izunaso after receiving the Federal Government Master Plan on Gas from the Minister of Power (Energy), Emmanuel Odusina, insisted that the debt owed NGC must be paid.

'We have decided to summon the Ministry of Power and the PHCN over their inability to pay for the gas that has been supplied to them, which they have been using to provide us the little power we are enjoying today," Izunaso stated.

The senator noted that when his committee visited Afam Gas Plant, it was discovered that only one of the eight turbines was working because there was no gas to fire the rest.
Flanked by the Aguma, the committees welcomed the gas master plan, but warned against the involvement of foreign companies in the implementation.

They also kicked against Build Operate and Transfer [BOT] method, so as to avoid a situation whereby contractors would hold government to ransom in future.

'The National Assembly does not want the master plan to operate on a Build Operate and Transfer (BOT) basis, and in terms of partnering with stakeholders. We must involve people from the Niger Delta. We don't want a situation where one foreign company will come and build gas pipelines and hold us to ransom. We don't want any BOT we want Public-Private Partnership Initiative," he said.
Aguma pointed out that the gas plan may not achieve its objectives as it failed to address the problems of restiveness of youths in the area.

The committee noted that there was no need for any road show outside the country to showcase the country's rich gas deposit.

In implementing the plan, the ministry was advised to concentrate on building the Calabar-Katsina gas line to link the Trans-Sahara gas pipeline, now that the completion of the Escarvous-Lagos pipeline has open up the South-West.

Decrying the continued flaring of gas even when the deadline given has expired, Senator Izunaso said that a bill would be sponsored to 'recommend stiff sanctions against companies that flare gas after the deadline of April 2008."

He decried the continuous flaring of gas in the country after the initial deadline of January 2008, adding that the National Assembly was set to cut the flaring and channel the enormous gas resources of the nation for the benefit of Nigeria's economy.

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