In a bid to address the issues associated with the power sector in Nigeria, particularly that of power shortages, Cummins and Power Gas teams jointly hosted an event with the leading Nigerian Manufacturing Industry leaders, at the U.S. Consul General’s residence in Lagos.
The aim of the event was to reconnect with existing customers and other attendees from the Nigerian Manufacturing sector to better understand their needs. One of the key points raised was that the Distribution Companies of Nigeria (DISCos) are expected to increase the cost of electricity in the near future, while power already accounts for almost 30%-40% of the cost of manufacturing production, according to one of the attendees.
Mr. Daniele Sechi, General Manager of Cummins Power Generation Nigeria detailed the benefits of dedicated power plants that are installed, owned and operated by Cummins, which effectively allows customers to “fix their cost of power” over a long period of time. According Mr. Sechi, the supply and quality of electricity through Cummins Gas Generators is highly robust and reliable. Cummins Energy Solutions Nigeria provides the operation, maintenance and after-market support for all Cummins Gas Plants in Nigeria. With over 200 engineers in Nigeria, the service offered allows for 24/7 operations to its customers, a fact that was backed up and acknowledged by the existing customers of Cummins and Power Gas present at the event.
It was also noted that in certain cases the tariff, Naira per unit (N/kWh), offered by Cummins is highly competitive to the tariff end users currently pay to the Distribution Companies for their electricity bills, however with Cummins customers are guaranteed high quality, uninterrupted power 24/7.
The Power Gas team, led by its Managing Director, Mr. Pulak Sen, addressed another major issue in the Nigerian energy sector, the availability of gas and the current limitations of the gas infrastructure. Power Gas has its compression plants at key strategic locations where they compress the piped natural gas and transport it in bulk quantities to power plants across the south, south east and south west regions of Nigeria. Not only is the cost of Compressed Natural Gas (CNG) lower than Diesel but CNG is also much more environmental friendly.
The management of Cummins and Power Gas, commenting on the success of the event, noted that both companies are committed to creating similar opportunities in the future where groups from various backgrounds can come together and address power issues for immediately executable solutions.
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