As poor power supply continues to hit many parts of Nigeria, some operators have shifted to gas-based solutions in order to stabilise operations at a lower cost.
The managing director at Nicen Industries Limited, NICEN, Chris Eze, whose company produces plastics and paint products, including heavy coatings, car paints, decorative paints, high-quality emulsion, and gloss finishes in Aba, Abia state, said the decision has been rewarding.
According to him, the company decided to use gas because of the poor power supply and high cost of diesel which affected independent power generation.
He said the company decided to contact Clarke Energy, a multinational specialist in engineering, installation, and maintenance of sustainable power generation solutions, to install a gas power plant.
Eze stated that in June 2020, Clarke Energy supplied and commissioned one megawatt, MW gas power plant solution which included the complete front-end engineering design, installation and project management and currently provides its stellar maintenance support to the plant.
“Their engine is one of the best that we have seen,” said Eze, “Even before we got in contact with them, we made inquiries and found that Clarke Energy engines are good, and many companies in Aba are already using the company’s products. So we signed up.”
He commended the company’s regular scheduled maintenance, adding “This speaks volumes to its product quality because only a vendor confident in its products will undertake to periodically visit an installation site to carry out maintenance without fear.”
Despite the success of the initiative, Eze said. “Sometimes gas is unavailable through the pipelines for extended periods due to scheduled preventive or corrective maintenance.
“If the grid supply was regular, there won’t be a need for an alternative power source. Therefore, to solve our power problem, we invested in owning our gas power plant.”
He noted the deficient road network in Aba as one of the company’s biggest challenges, which hinders the speed of moving raw materials into the factory and finished products to Nigeria’s markets, particularly in Aba, Lagos, Kano and Abuja.
Eze suggested that easing some of the tax components across some levels of authority, such as state and local government areas, is an idea the government could look into because it will incentivize small and medium-sized businesses to grow.
The managing director, who stressed the challenge of accessing foreign exchange to procure raw materials, added: “To further grow our economy, we must support local manufacturing to help reduce the unemployment rate and improve the quality of life of Nigerians. Because no government can do all that alone, they must assist the local industries with the needed incentives.”
Similarly, the managing director of Clarke Energy in Nigeria, Yiannis Tsantilas, said, “The one MW power plant solution delivery describes the Clarke Energy commitment towards improving the manufacturing and processing value chain in Aba and the south-eastern part of Nigeria.
“Clarke Energy partnered with NICEN in its vision to improve its costs of manufacturing durable plastics and high-quality decorative paints that are affordable and competitive in the local market. Furthermore, it has demonstrated local industrial capability and capacity to ensure made-in-Nigeria wins.
“Clarke Energy designed the power solution from plant layout drawings, engine delivery, installation, commissioning, and equipment maintenance. The plant is powered by natural gas supplied by Shell Nigeria through gas pipelines belonging to the Nigerian National Petroleum Corporation (NNPC).”
Checks by Vanguard showed that many companies have also adopted gas because of the perception that it is cheaper and cleaner than other fossil fuels.