The Nation Newspaper

Category: Energy

  • Community hails Total for resolving Akoka fuel leak

    Residents of Akoka community in Lagos State have commended the Total service station in Akoka for its swift response in tackling and resolving an accidental fuel leakage which resulted in contamination of water sources of some houses in the area.

    According to Segun Adesanya, Chairman, Akoka Community Development Association, the service station notified him about the fuel leakage immediately the incident occurred as well as the Lagos State Environmental Protection Agency (LASEPA).

    He stated that LASEPA directed Total to start immediate clean up and remediation which has since been done by the station.

    Some landlords in the affected area confirmed that the community was free from any form of contamination, and acknowledged the swift response of the management of the service station after the leakage was reported.

    One of the landlords, whose houses were affected, Mr. Razak Odufuwa, of No. 57, St Finbarrs College Road, Akoka, said there was an incident of fuel leakage in the area. He commended the management of the service station for mitigating impact of the fuel leak and speed of clean up exercise.

    Odufuwa said: “When the incident occurred, our water was contaminated and unsafe to drink or for any other domestic purposes.’’

     

     

  • All On, AfDB, NDF, others partner on $58m off-grid energy access fund

    Nigerian off-grid energy investment company, All On, said it is partnering the African Development Bank (AfDB), the Nordic Development Fund (NDF); Global Environment Facility (GEF) and Calvert Impact Capital (CIC) towards a $58 million first close for the Off-Grid Energy Access Fund (OGEF).

    OGEF, which is managed by LHGP Asset Management (LHGP), an alternative fund manager with offices in Lagos, London, and Nairobi, is a dedicated debt fund for off-grid energy companies and is part of the AfDB-sponsored Facility for Energy Inclusion (FEI). The FEI is a $500 million finance platform designed to provide loan facilities in both local and hard currencies to support innovative energy access companies.

    AfDB President, Dr. Akin Adesina, said: “Access to electricity is a fundamental human right. That is why the African Development Bank set up the Fund for Energy Inclusion, to support off-grid energy systems. I am delighted that All On and Shell have joined forces with the African Development Bank to invest private capital in this Fund to help accelerate access to electricity in Nigeria. Together we will close the energy access gap in Nigeria and across Africa.”

    OGEF achieves its first close with equity and debt commitments of US $58 million from All On, AfDB, NDF, GEF and CIC, and the structuring process and investments build on support from Shell Foundation, DFID and USAID. FEI OGEF has been designed to provide a flexible range of loan facilities in predominantly local currency, to companies in the household energy access sector including distributors, manufacturers, end-user credit providers and other businesses supporting the ecosystem.

    According to Wiebe Boer, the CEO of Nigeria-based All On, an off-grid energy impact investment company backed by Shell, “We see OGEF as a great opportunity for public and private investors to work together to address Africa’s significant access to energy gap.  We look forward to working with LHGP, especially the Nigeria-based team, to build a solid portfolio of off-grid energy companies that are improving livelihoods by providing affordable power to unserved and underserved communities.”

    This first close follows the official launch of FEI at the Africa Energy Market Place (AEMP) on July 5 and 6, 2018, where the initiative was presented to the governments’ representatives of five African countries – Côte d’Ivoire, Ethiopia, Egypt, Nigeria and Zambia – as well as leaders from the private sector and the development partner communities.

     

     

  • Mainstream Energy eyes 1,300Mw of power from Kainji, Jebba

    Mainstream Energy Services Limited (MESL) has increased its generation from 542 megawatts (Mw) to 922Mw and plans to increase it to 1,300Mw.

    MESL was licensed as a power generating firm in 2011. It acquired Kainji and Jebba Hydro Power Plants through a concession agreement in November 2013.

    The two plants are 100km apart with Kainji dam situated on the upstream of Jebba. The two hydro power plants have installed capacities of 760Mw and 578.4Mw.

    In a communiqué at the end of the August ministerial meeting of the Minister of Power, Works and Housing with operators of the power sector, held in Minna, Niger State, Mainstream Energy stated that it is committed to funding the Mainstream Foundation as its corporate social responsibility initiative.

    Mainstream also confirmed that five industrial customers were  benefitting from the Eligible Customer regulation as they are taking their power from its facilities and paying.

    Also, the meeting was told there were desires by industrial customers seeking to benefit from the policy of Eligible Customers.

    Also, the progress being on the Meter Asset Provider (MAP) scheme was discussed and noted that it would attract investment to support the electricity distribution companies (DisCos) to meter customers.

    Observers said the challenges of the industry were on distribution infrastructure expansion and supply of meter, though challenges on generation and transmission remain.

    Fashola directed the electricity generating companies (GenCos) to assist in harmonising invoices of gas suppliers to resolve payment issues in the value chain.

    It was noted that recovery of payments by GenCos had increased from 20 to 80 per cent; and that power supply capacity has improved from 4,000Mw to 7,000Mw since the implementation of the N701billion Payment Assurance Facility (PAF) began last year.

    The Niger Delta Power Holding Company (NDPHC) was commended for completing some projects, including the 2x15MVA, 33/11kV Injection substation at Okene; 2×7.5MVA, 33/11kV substation at Kabba;  2x15MVA, 33/11KV at Confluence Beach; and 1×7.5MVA, 33/11KV at Felele all in Kogi State.

    The Nigerian Electricity Regulatory Commission (NERC) also acknowledged receipt of directive by the Federal Government to work out and implement Competition Transition Charges as provided by Law, to allay DisCos’ fears of loss of revenue from various policies of Government; encouraged State Governments to work with the DisCos to improve power supply in their respective states, among others.

  • SPDC makes progress in spills cleanup in Bayelsa, Delta communities

    Shell Petroleum Development Company of Nigeria Limited (SPDC) has recovered over 95 per cent of spilled oil from the recent spill incidents on sections of the Trans Ramos Pipeline (TRP) in Aghoro community, Bayelsa State and in Odimodi community in Delta State.

    According to its Media Relations Manager, Bamidele Odugbesan, the pipeline, which has remained shut-in since the incidents, supplies crude to the SPDC Joint Venture-owned Forcados Oil Terminal in western Niger Delta for export.

    He said company regretted the incidents, adding that in line with its standards, the TRP was shut, the incidents were reported and the Oil Spill Response and the Emergency Response teams were activated to manage the incidents and prevent further spillage.

    “As soon as clean-up and site assessment are completed, we are committed to starting the immediate remediation of the impacted areas in Aghoro and Odimodi,” the spokesperson said.

    Odugbesan said the details of the cause and impact of the spills will be captured in the Joint Investigation Visits (JIV) reports, which will be released after sign-off by all parties.

    “The JIV is a multi-party exercise involving the regulators, the community, representatives of the state government, security agencies, and representatives of SPDC. The outcome is then signed off by the stakeholders to authenticate the findings,” the spokesperson explained.

  • ‘Train7 will change Nigeria’s revenue, foreign investment profile’

    The Nigeria Liquefied Natural Gas Limited’s (NLN’s) Train 7 project will change the country’s revenue and foreign investment profile, its Managing Director/Chief Executive Officer, Tony Attah, has said.

    He stated this when the Minister of Finance, Mrs Kemi Adeosun, visited the NLNG’s plant on Bonny Island, Rivers State.

    Attah said the planned Train 7 Project, which would increase  the plant’s output from 22 million to 30 tonnes per annum (MTPA), would lift foreign direct investment (FDI).

    Briefing the minister on NLNG’s operations and business, the NLNG chief said the firm would be seeking about $7 billion from the international markets to fund the construction of Train 7 and investment in the upstream gas sector  that will ensure the sustainability of feedgas supply to Trains 1 to 6 and the new one.

    Attah noted that recently, NLNG commemorated the repayment of a US$5.45 billion shareholder loan, which contributed to funding the Base Project, Expansion Project, NLNG Plus Project and Train 6. The final repayment, a milestone for NLNG and Nigeria, sends a strong message to the world that Nigeria was ready for more foreign investments, he added.

    According to him, the economic impact of increased LNG production output would be significant, adding that since the start of NLNG operations 19 years ago, the firm has generated more than $90 billion in revenue and has paid over $16 billion dividends to the Federal Government, with respect to its 49 per cent shareholding in the company, held by Nigerian National Petroleum Corporation (NNPC). In addition, NLNG has paid some $13 billion to the Federal Government for feedgas purchases and $6.5 billion in taxes as well.

    NLNG has also spent over $200 million on Corporate Social Responsibility (CSR) projects in the Niger Delta and the country as a whole.

    “We take up about 50 per cent of Liquefied Petroleum Gas (LPG) supply in the country and we have committed about 350,000 tonnes to the domestic market.  We believe that with an increase in our production, these numbers will be impacted on positively and this will help with the country’s revenue generation profile,” he remarked.

    Attah said the NLNG has received Federal Government support for its expansion project.With that, NLNG has the full backing of all critical stakeholders, and that the stars have lined up in support of Train 7, therefore, there is no going back on the taking of the final investment decision (FID) soon, which will signal the take off of construction.

    Mrs Adeosun said: “Nigeria LNG Limited is a high-performing company, which the government has a stake in. We are very proud of NLNG’s achievements over the years and we believe the company is an ideal model for the sector,” she added.

    NLNG Chairman, Chief O. R. LongJohn said the Board believed in the company’s vision of a global company helping to build a better Nigeria, which has guided company’s business decisions. He said NLNG has achieved full indigenisation of its management team who has proven over time their capacity to lead a world-class company.

    NLNG Deputy Managing Director, Mai-Bornu, said the minister’s visit was an indication of the Federal Government’s commitment to increasing the country’s LNG market share, securing the country’s revenue in a fast-changing energy industry and deepening Domestic LPG utilisation locally. He urged the Federal Government to support the NLNG in its quest for funding for the project.

    The minister’s visit is coming on the heels of the milestone events in preparation for Train 7 construction, which also include the award of contracts for the Front End Engineering Design (FEED) by NLNG.

    The minister was received by  LongJohn, Attah, Mai-Bornu; NLNG Director, Chief Cordelia Agboti; and the General Manager, Production, Tayo Oginni.

  • Why OB3 pipeline project is delayed, by Nestoil

    Nestoil has attributed the delay in the completion of the East-West pipeline project to incessant rainfall, resulting in flooding of the operational areas.

    The company’s Executive Director, Dr. Chukwueloka Umeh, said the pipeline project, also known as Obiafu, Obrikom, Oben (OB3) gas pipeline, was also impacted by militancy and the difficulty encountered in crossing the River Niger.

    He told The Nation that a delegation from the Vice President’s office, as well as from the Senate and the House of Representatives have inspected the project.

    ‘’They saw the challenges we faced and the level of work done and they were impressed and commended us,’’ he said.

    According to him, the Nestoil’s part of the project has reached 87 per cent completion. ‘’We have finished the welding and are joining the spools and burying the pipes and expect to complete it by the first or second quarter of 2019, if the polity is stable considering that it is election year.

    Umeh said: “The project is divided into two. Oilserve is supposed to do half of the pipeline and Nestoil, the other half. But one thing that has not been told and most Nigerians don’t know about the project is that the pipeline starts from Rivers State,  and passes to Delta State. The topography the pipeline traverses is such that some part is mostly on land and the other mostly on seasonal swamp.

    “Nestoil being known as an expert for working in seasonal swamp got that section of thee job. So, from Omoku in Rivers State to Delta State during the rainy season, most of the pipelines we work is under water. Also, imagine the weight of 48-inch diameter pipeline. There is no way you can handle that kind of pipeline in the water while work is ongoing. We have reached about 87 per cent completion on the project. It is important to note that we have to weld the pipeline, dig the ground, put the pipeline, sometimes you have to put some weight on the pipes before you bury them.

    “So, when the ground is waterlogged, you cannot do much about welding for the safety of the workers and there is no equipment you can use for the welding under water. You cannot also bury the pipeline when the place is full of water. That is the major challenge we are facing. From when we started this project, when it was signed in 2012 and now, the rainfall pattern in the country has changed. There has been big flooding within these past years. A lot of that flooding happened in the areas where we work on the pipeline in Rivers State. Currently, we are supposed to do horizontal Directional Drilling (HDD) to cross the pipeline under the River Niger, which is about two kilometres. It has never been done in this country before for this size of pipe. It has been done in other parts of the world, but the longest pipeline crossing of this size that has been done in other parts of the world is about 1.8 kilometres. The one we are doing on the River Niger is longer; so, this pipe will set the world record for doing HDD.

    “We are in rainy season, the River Niger banks are overflowing.The equipment we use to the HDD, water has covered them. Therefore, there is nothing we can do. When people say Nestoil is delaying the project, they don’t take into account where it is working.

    ‘’Oilserv has done a great job by finishing their scope, but theirs is mostly on land. Nestoil is on seasonal swamp, so we have several months in a year that we can do work effectively. We have lost much equipment to this project because of the swamp.

    ‘’When you are working and rain starts and it gets to a certain level, you may not be able to bring out your equipment and you abandon them there until dry season comes. When you come back in dry season, a lot of the equipment are already gone and you cannot use them anymore. You have to start overhauling them.

    “The communities where we work are also a factor. Omoku is the epicenter of this project and you know what militants do there. We deal with the communities every day. Sometimes, you are stopped from working for one reason or the other. Sometimes, warring militant groups compel us to stop work. Those things cause delays because you have to think safety of your staff first. Sometimes last year, 14 of my workers were kidnapped in a day. These are people working on the OB3 project, this made workers scared of going to work. How do you work in these kind of areas and expected to deliver on schedule?

    “Rainfall pattern is changing not just in Nigeria but everywhere. The Meteorological Association of Nigeria has predicted that this year rainfall in Nigeria will increase by 10 per cent and it is happening. Water levels have risen much quicker than last year. Some of my equipment are stuck on the right of way and these equipment are not cheap. In these instances, there is nothing you can do but we have been able to manage to this point. We have a schedule for completion that we agreed with the client (Nigerian National Petroleum Corporation). The client has been good even as a partner because they understand the challenges that we face. We have device ways of tackling the challenges on daily basis, we discuss with our client and we work together to proceed.”

    The multi-million dollar OB3 gas pipeline is expected to increase domestic gas supply by two billion standard cubic feet per day (bscf/d) when it begins operation later in the year. At inception, the project was estimated to cost over $400 million.

  • REA gets nod on procurement through PPP

    THE Federal Government has given the Rural Electrification Agency (REA) the nod to provide electricity to rural areas using hybrid solar systems, which would be procured using the Public-Private Partnership (PPP) model.

    Infrastructure Concession Regulatory Commission (ICRC) Director-General, Mr Chidi Izuwah made this known in a statement.

    According to him, the commission has issued an Outline Business Case (OBC) and Full Business Case (FBC) compliance certificate for the project.

    Izuwah said the compliance certificates issued by the ICRC meant that the project proposal as presented by the REA was economically viable and of huge benefit to the country.

    “In support of this noble objective of government, we in the ICRC today issued a joint OBC and FBC compliance certificate to enable the REA commence a pilot long term PPP.

    “The focus will be on providing affordable and economically rewarding hybrid solar power to some rural communities. On successful completion of the pilot, massive roll out will occur nationwide,’’ he said.

    Izuwah said the certificate was received by Dr Sanusi Ohiare, the Executive Director, Rural Electrification Fund of the REA, on behalf of the Managing Director of REA, Mrs Damilola Ogunbiyi.

    The African Development Bank (AfDB) had said one of the biggest constraints to competitiveness, economic growth and diversification in Nigeria was the crippling infrastructure deficit.

    According to the bank, the crippling infrastructure is estimated at about 300 billion dollars.

    Given the government’s limited access to international debt, revenue constraints and competing priorities, PPP remains the sustainable option for the country.

  • Firms invest N5tr in meter manufacturing

    PRIVATE firms have  invested $16 billion (about N5 trillion) in meter manufacturing, Acting President Yemi Osinbajo has said.

    Hailing the investors for the gesture, he said the investments would trigger economic growth.

    He spoke at the inauguration of the Meter Box and other Plastics Factory of Mojec International Limited.

    The government, he said, was  doing everything possible to improve the ease of doing business.

    Osinbajo said the nation has huge metering deficit. According to him, one of the ways to solve the problem is to patronise local manufacturers, such as Mojec and other locally-produced meters.

    He said: “Let me congratulate the management and staff of Mojec International Limited on their desire and dedication to this project. It gladdens my heart that all our efforts in engaging the private sector is materialising and this is really indicative of real progress and quantum leap for the Nigerian economy.

    “It is very obvious that Nigerian talent and creativity have proved time and time that they can compete with the best anywhere in the world. Here in Mojec, it is very obvious. Practically, everyone you see from the factory down to the reception, are all Nigerians. It shows that we are at the forefront of innovation, manufacturing and human capital development.

    “What you have seen today tells us that economic growth and development have to do with the private sector. The reality is that we can now produce meter in Nigeria, and what we really need is to bridge the financing gap that is currently in existence. They need cheap financing so that meter manufacturers and the electricity distribution companies (DisCos) would benefit maximally.”

    Osinbajo described the facility as a big achievement and milestone that would not only boost local capacity, but create thousands of jobs for Nigerians. While expressing optimism on  government’s determination to achieve its target in power generation, he noted that the facility is a huge step forward for the development of the power sector, noting that it would help significantly in addressing the six million energy meter deficit. It is very clear that Nigeria is at the fore front of meter manufacturing in Africa.

    Mojec International Managing Director Ms. Chantelle Abdul, commended the Acting President for his commitment to promoting local content and expressed the company’s desire to work closely with Federal Government to find lasting solutions to the problem of steady power supply in Nigeria.

    She said the current facilities and factory are capable of producing meters from start to finish. “This factory has provided enough proof that local companies can produce meters that can meet global standard, which could consequently help in reversing the government policy on local meter manufacturing,” she said.

    She appealed to Federal Government to assist local manufacturers by formulating policies that would encourage cheap financing, which could go a long way to make meter accessible to the people.

    The company, she said, is about to build a world-class research institute, adding that further researches would be made there to enable it discover new ways of producing meters as the science and technology are constantly evolving.

    Ms Abdul pointed out that Mojec is the largest meter manufacturing company in Africa, adding that if well-funded, it would be exporting within a very short period from now.

    “I am happy to announce that our meter is competitive internationally, in terms of quality and price. We are taking over Africa, as we have started entering into other African countries. Mojec has been predominantly leading in vendor financing over the past three years. We are financing six out of 11 contracts that we are running today, though, majority of our competitors prefer cash transactions. This is why Mojec stands.

    “From our Meter Asset Provider (MAP) policy, 70 per cent of meters are expected to be delivered through importation while 30 per cent is local production. If we have a market of about six million metering gap, this means only two million meters are allowed to be provided locally and that can easily be done by Mojec alone. However, there are over six local manufacturers, who can also create jobs and contribute to the GDP and enable Nigeria to become an innovation hub such that we will be able to move our meters into the rest of Nigeria and beyond.

    “With this situation, what we are asking is that the policy be reversed as this will enable other local manufacturers to produce more. By so doing, we would be developing local capacity and creating enough jobs that would contribute greatly to our economy,” she said.

    Mojec International has delivered over 1.2million meters across Nigeria.

  • Board to commercialise engineering projects

    The Nigerian Content Development and Monitoring Board (NCDMB) will partner the Council for the Regulation of Engineering in Nigeria (COREN) and the Committee of Deans of Engineering and Technology of Nigerian Universities (CODET) to develop and commercialise the best engineering projects completed by undergraduates in the 2017/2018 academic session.

    NCDMB Executive Secretary Simbi Kesiye Wabote made the commitment at the 27th Engineering Assembly, organised by COREN in Abuja.

    He spoke after the announcement of top three individuals and group engineering undergraduate projects in the country by the Committee of Deans.

    The top three prizes for Best Individual Engineering Projects went to Egbe Gabriel Tobi and Nsionu John Udoka both from Covenant University Ota, Ogun State and Omoseyi Aaron Tolu of the Federal University of Technology, Akure (FUTA). Similarly, students of the Federal University Oye-Ekiti, University of Nigeria, Nsukka (UNN) and Enugu State University of Science and Technology (ESUT) clinched the top three awards for the Best Group Engineering Projects respectively.

    The top three Best Graduating Students in Engineering emerged from the University of Nigeria, Nsukka (UNN), Covenant University and Federal University of Technology Akure (FUTA) while the prizes for Best Academic publication went to students of the University of Nigeria, Nsukka and Michael Okpara University of Agriculture, Umudike, Abia State.

    These competitions involved the 49 COREN accredited universities in Nigeria and the contestants went through departmental and faculty levels, with the top three from each university competing at their various zone before the final selection that was held at the sidelines of the COREN Assembly, this week.

    Announcing the Board’s support to the CODET Awards, which he described as a great initiative, Wabote said: “NCDMB would work with the committee to reconvene the winners and go through the projects with a view to develop and commercialise them,” adding that “part of our mandate is to enhance research and development. As part of our contribution, we will support them through the development stage of the findings they have put together.”

    The NCDMB chief also announced annual prizes endowment for the Best Research Publication by any Engineering undergraduate. He also procured 300 copies of the authoritative book: “Professional Engineering Practice” to be donated to the Universities.

    Wabote commended the current COREN leadership, particularly the President, Kashim Ali, for restoring professionalism to the engineering sector and organising a successful COREN Assembly. He noted that the Board had recorded numerous achievements in the oil and gas industry and would achieve much more if its mandate were extended to other key sectors like power, Information Communication Technology (ICT) and construction.

  • SNEPCo calls for diversification roadmap

    Shell Nigeria Exploration and ProductionCompany (SNEPCo) Managing Director Bayo Ojulari has underscored economic diversification as panacea for job creation and rapid economic growth.

    He spoke at the just-concluded annual conference and exhibition of the Nigeria Council of the Society of Petroleum Engineers (SPE) where Shell in Nigeria bagged the award for best exhibitor.

    Speaking on the conference theme: “Diversification of the Nigerian Economy – The Oil & Gas Industry as an Enabler”, Ojulari called for a diversification roadmap bearing the commitment signature of major stakeholders in the Nigerian project. He said: “With such a roadmap, we are able to track performance year-in year-out while remaining focused.

    “For Nigeria to diversify its economy, it must leverage the low hanging fruits such as agriculture, petrochemicals, which use gas as its feedstock and most importantly, education and technology.”

    At the awards ceremony, two Shell workers,  Oghogho Effiom and Stella Egwim, received the SPE Nigeria Chairman Medallion awards while 10 other Shell workers got  Service awards. The awards demonstrated a strong Shell participation at the 2018 SPE conference, where 20 technical papers were delivered by Shell workers out of 150 papers constituting about 13 per cent.

    “Over the years, Shell Companies in Nigeria have continued to demonstrate thought leadership at flagship industry events such as the SPE and we continue to promote self-development and professional affiliation by our staff as part of our wider human capacity development in Nigeria,” said Ojulari, who received the best exhibitor award from the outgoing SPE Nigeria Council Chairman, Mr. Chikezie Nwosu.

    Shell’s exhibition stand combined aesthetics, architecture, informative posters, panel discussion sessions, career talks, video presentations and the ever popular Shell health stand, to be a central attraction at the conference.

    Visitors, who thronged the Shell booth were received by the lead exhibitor, Kefe and team. The guests were drawn from oil servicing firms, equipment manufacturers, students, professional and academic bodies as well as international and indigenous oil contractors and companies.