Dangote-PENGASSAN Faceoff May Threaten National Grid Stability, Operators Warn

The Nigerian Independent System Operator (NISO) has raised an alarm over the potential impact of the ongoing industrial dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery on the country’s power sector.

NISO, in a statement Sunday night stated that the national grid relies heavily on gas-fired power plants for electricity generation.

It cautioned that any sustained disruption in the supply of natural gas could constrain available generation capacity, disrupt system operations, and undermine the stability and reliability of electricity supply across the country.

The warning follows directives reportedly issued by PENGASSAN to suspend the supply of crude oil and natural gas to the $20bn refinery, Africa’s largest single-train refining facility, over unresolved labour issues.

According to NISO, while measures are being considered to cushion the immediate impact and prevent a total grid collapse, the long-term risks of a prolonged gas supply cut cannot be underestimated.

NISO urged both parties to embrace dialogue and lawful dispute-resolution mechanisms in the overall interest of the economy and the well-being of Nigerians, reiterating its commitment to safeguarding the secure and reliable operation of the national grid.

The statement reads: “The Nigerian Independent System Operator (NISO) has observed with concern the ongoing dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery, which has resulted in directives to suspend the supply of crude oil and natural gas to the facility.

 
“NISO wishes to draw attention to the potential implications of this action on the nation’s power sector.

“The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations and undermine the stability and reliability of electricity supply across the country.

 
“While NISO is considering measures to mitigate total grid collapse, we urge all parties involved to embrace dialogue and lawful mechanisms of dispute resolution in the overall interest of the economy and the well-being of Nigerians at large.

 
“We reaffirm our commitment to ensuring a secure and reliable operation of the national grid and will continue to support wider efforts aimed at safeguarding energy security”.