Nigeria has recorded $ 1.5 billion loss of oil revenue due to the suspension of Shell Petroleum Development Corporation Trans Forcados Trunk line [TFP] at Chanomi Creek in Delta State.
The suspension which has been carried out since June this year was sequel to the additional eight damaged points on the oil facility.
In a confidential document obtained by Daily Trust yesterday, the Anglo-Dutch company said the development has punctured production rate in the oil facility.
The document titled: "Still further damage to our Trans-Forcados Trunk line(TFP]' reads in part: "In real terms the TFP which has been out of service since June 2009 has recorded a loss of circa 20 million bbls, equivalent of $1.5bn loss of revenue to the nation.
"The current total production from Delta state is about 30,000bbls as against a capacity of 300,000bbls.
"Apart from this there is a threat to gas supplies from Utorogu,Oben,Sapele and Ughelli East ,as current practice of transferring condensate through the UPS to WRPC is not sustainable for operational, technical and safety reasons".
Utorogu,Oben,Sapele and ughelli are expected to receive 610million standard cubic feet of gas for power generation translating into about 2,440mw of electricity if delivered
but generation from Power Holding Facilities in the area has gone down to below
2,000MW as a result of insufficient gas.
The Minister of Power Dr.Lanre Babalola,it would be recalled said that actual generation has gone up to 3,700MW while generation capacity is now 5,600MW.
According to him, if the new holes discovered by oil companies on their pipeline are repaired that might boost supply of gas to the power plants adding that such effort will move actual generation which is less than 400MW now to 4,000MW,representing the level of power that will get to Nigerians.
"What is holding us now is gas and I am sure as soon as the companies are able to increase supply to PHCN generation companies the idle machines will come alive. As we speak now we have over 2,600MW idle machines that we cannot put in use due to lack of gas," Babalola said.
The Minister explained that government is doing everything humanly possible to deliver on its promises to Nigerians adding that at the highest government level,meeting are been held to as quickly as possible resolve the issues of gas for power generation.
Babalola added that supply has been restored to Ikoyi and Victoria Island where a major transmission station at Dolphin collapsed recently.
He said the Power Holding company in house engineers have been able to back feed the affected areas and supply restored for more than seven days now.