The Nation Newspaper

Category: Energy

  • ‘Power generation will increase by 20% in 2035’

    The Chief Executive Officer, Seplat Petroleum Development Company Mr. Austin Avuru has said power generation would rise by 20 per cent by 2035.

    He noted the global trend in energy supply would increase as consumers turned to the consumption of renewables.

    “The global trend in energy supply would seem to suggest an alarmist way by 2035; perhaps, there would be no place for oil and gas in the world,’’ he said.

    He sid multinationals were investing substantial funds  away from oil and gas into renewables. ‘’Nevertheless, within Africa, we are seeing if the pace of Gross Domestic Product (GDP) improvement continues, you would see the increased consumption of energy,” he said.

    Avuru stated this while delivering a keynote speech at the West African International Petroleum Exhibition and Conference (WAPIEC) in Lagos with the theme: Innovation – Sustaining West African oil and gas production through innovation and collaboration.

    He noted that generation of power was crucial to the nation’s economy. “The share of power generation is one of the key consumers’ needs. It is expected to rise by 20 per cent in 2035,” he said.

    The two-day conference, which was hosted by the Petroleum Technology Association of Nigeria (PTEAN), gave energy experts an opportunity to discuss strategies and opportunities for funding local content across the region.

    At the panel discussion, it was noted that energy consumption in West Africa was very low.

    In 2017, a communiqué issued by the Minister of Power, Works and Housing, Babatunde Fashola, at the 18th monthly power sector and stakeholders meeting had explained that as at August 10, 2017, 6803 megawatts (Mw) was recorded as the available generation capability, with a wheeling capacity of 6700Mw by the Transmission Company of Nigeria (TCN), currently constrained by the distribution companies (DisCos) inability to take load.

  • BEDC pledges improved service delivery

    BEDC pledges improved service delivery

    The management of the Benin Electricity Distribution Plc (BEDC) has promised improved service delivery to its customers in Edo, Delta, Ondo and Ekiti states.

    It made the pledge at the graduation of the third set of BEDC graduate-trainees and second set of technician trainees, held in Benin City.

    The company’s Managing Director/CEO, Funke Osibodu, said the company was committed to rendering better services.

    She said the training of employees was aimed at boosting their performance.

    Describing the graduates as future leaders, she said: “We have, so far, engaged over 700 graduates and technicians and we intend to engage about 1000 in the first phase. We give them intensive two months classroom training and after that 10 months of practical field training on the understanding of the electricity business. We are grooming them to sustain the good things we are doing. The whole purpose is about the customers, how to serve them better. There are many areas to work on but we are improving and as we grow, we will bring more trainees”

    Edo State House of Assembly Speaker, Hon Kabiru Adjoto, represented at the occasion by the House Committee Chairman on Energy and Water Resources, Hon. Chris Okaeben, commended the  BEDC for its job creation. He advised the trainees to see themselves as being privileged to be employed, stressing that they should ensure that they hold high service standards in doing their jobs without compromise.

    He said a bill was under review on power theft because of incessant theft of power and the concern for the safety of Edo citizens as well as the need to ensure that more power was available to the people of state.

    Elizade University Vice Chancellor, Professor Theophilus Fadayomi, said the university was ready to train manpower for distribution companies (DisCos) across the country. He said the institution has entered into a partnership with BEDC because it shared the vision of the company to develop manpower.

     

  • ‘New deepwater projects must surpass Egina FPSO integration’

    New deepwater projects must set new records beyond in-country integration of the Floating, Production, Storage and Offloading (FPSO) vessels, the Nigerian Content Development and Monitoring Board (NCDMB) Executive Secretary (ES), Simbi Wabote, has said.

    He spoke at the reception for the Total Upstream Nigeria’s Egina FPSO at the SHI-MCI, LADOL yard in Lagos.

    He said the Board was working with operating companies and project promoters to ensure that new projects, such as the Bonga Southwest and Zabazaba deep water projects surpassed the Nigerian Content levels attained on the Egina project.

    Wabote, represented by the NCDMB General Manager, Projects and Operations Division, Paul Zuhumben, stressed the need for close collaboration among stakeholders, particularly the Nigerian National Petroleum Corporation (NNPC), National Petroleum Investment Management Services (NAPIMS) and the Department of Petroleum Resources (DPR) to ensure that new deepwater projects are developed speedily.

    “This is the beginning. We know the Zabazaba is coming with an FPSO. We have made it mandatory on forthcoming major projects that the Egina project will be used as a minimum. It means we are going to dream big and fabricate and integrate more modules in-country.”

    Commending Total on the arrival of Egina project, the ES maintained that the feat was attained because of the support of the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and the Board’s strategic implementation of the Nigerian Content Act and insistence on the maximisation of existing capacities and development of new capabilities.

     

  • Nigeria must be gas-ready, says NLNG chief

    The Managing Director of Nigeria Liquefied Natural Gas Limited (NLNG) Tony Attah has said Nigeria must unleash its gas potential and support the company’s expansion programme, Train 7 project, in preparation for a world that is fast making efforts to reduce its fossil fuel consumption and minimise carbon footprint.

    Attah spoke at the second West Africa International Petroleum Exhibition and Conference (WAIPEC) in Lagos.

    In a paper titled: “Global energy transition: Which way forward Nigeria?”, Attah told oil and gas chief executives and experts that the global energy landscape is changing with major concerns for the environment, such as global warming, and increasing demand for cleaner energy.

    He  said with reduced appetite for crude oil as a dependable source of energy, gas is the best option for Nigeria in the future.

    He said: “The best bet for Nigeria is gas. It is available in abundance and three times cleaner than oil in terms of carbon content. Nigeria has to begin to think about the relevance of oil in the future. Nigeria has to start to develop its gas resources in readiness for this future. Some critics say gas is not profitable but let me draw your attention to Qatar, a small fishing economy which was transformed from a GDP per capita of $2,000 in 1970 to a GDP per capita of $124, 000 in 2017 using gas. ‘’

    He continued: “Gas can lift Nigeria, which is where NLNG comes in. NLNG is producing 22 million metric tonnes per annum (MMTPA), but we are not resting on our oars. We want to construct a Train 7 that will increase our capacity to 30 MTPA. It is time for gas. It is time to unleash Nigeria’s potentials. That is how we can survive the future with increasing appetite for renewable energy.

    “The thirst for cleaner energy is increasing and a lot of that has to do with increasing environment friendly policies. Countries like the United Kingdom, Sweden, Norway and many other countries are making moves to significantly reduce their carbon footprint. Take for example India, which aims for 40 per cent renewable energy by 2030. UK joins France to ban fossil-fuel cars by 2040. Norway aims for all new passenger cars and vans sold in 2025 to be zero-emission vehicles while Sweden has committed to 100 per cent renewable energy by 2040.”

    The NLNG chief noted that the world’s population will grow by an additional two billion people by 2050. They will need energy.

    ‘’Where will it come from? Most stakeholders in the future will not accept the carbon emission levels that are prevalent. Renewables play a significant role in the growth of electricity, contributing almost 40 per cent of the growth in global power generation in 2016. By 2040, EIA estimates that 31 per cent of world electricity consumption would come from renewables, roughly half of which will be from hydropower, as wind and solar power will grow rapidly in the coming decades,” he added.

     

  • Why fuel crisis lingers, by IPMAN

    Why fuel crisis lingers, by IPMAN

    The Federal Government’s inability to improve fuel supply is caused by  the dysfunctional refineries, failure to pay marketers their over N800 billion subsidy debts and poor maintenance of the majority of the 22 depots owned by the  Nigerian National Petroleum Corporation (NNPC), The Nation has learnt.

    Other reasons were the cost of fuel import and marketers’ inability to access foreign exchange (forex).

    It was gathered that many of the 22- state owned depots were not working  because NNPC lacks the capacity meet national fuel requirement.

    Investigation by The Nation revealed that NNPC is rationing fuel due to high cost of importation. During a visit to the NNPC Satellite depot in Ejigbo, a suburb of Lagos, it was discovered that the corporation supplies the depot between five and 10 million litres of fuel  weekly, instead of 21 million litres.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) Southwest Chairman,  Alhaji Debo Ahmed, said many of the depots were not working optimally.

    In a telephone interview, he said Aba, Port Harcourt, Owerri,  Ibadan and Mosimi depots were functioning at low capacity.

    He said the failure of the NNPC to distribute fuel evenly nationwide is also a cause of the problem.

    Ahmed said: “Often times, NNPC supplies fuel to private depots at N156 per litre instead of N133 per litre a development, which made some marketers sell fuel at higher rate than the official pump price. This, among others, contributes to the pocket of crisis, which the downstream sub-sector of the oil and gas industry is facing.’’

    Also, the IPMAN’ Chairman, Ejigbo Sattelite Depot, Mr Alanamu Balogun, said: “Fuel scarcity persists despite the establishment of two depots in Apapa, Lagos, last week, by private investors.”

    He said the inclusion of Folawiyo and Emadel depots to the depots in the country is yet to improve fuel supply. He said Ejigbo depot was battling storage problem as its five bigger storage tanks are not working well, adding that the development made the depot to use the smaller tanks for operation.

     

  • NCDMB chief seeks Content Act amendment

    • ‘Egina recorded over 50% local content’

    The Executive Secretary (ES), Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, is seeking the amendment of Section 68 of the Nigerian Content Act, which provides sanctions for contractors who violate the Act.

    Wabote solicited National Assembly members’ support on the issue, urging them to compel government-owned oil and gas companies to patronise facilities that have established capacities in-country.

    The NCDMB chief, who spoke during the public hearing organised by the Senate ad-hoc Committee investigating the $16 billion Egina Project, said the  project recorded over 50 per cent Nigerian Content, stressing that it was the reason the Board gave few waivers on the project. He added that 100 per cent implementation of the Content Act might affect oil production.

    He said the Nigerian Content recorded on the Egina deepwater project fell short of the 60 per cent target set by the board but exceeded 50 per cent. He describedthe feat as commendable.

    He noted that the execution of Egina set new benchmarks and domiciled new capacities and facilities in-country citing as an example, the FPSO integration facility at the SHI-MCI yard located at LADOL Free Zone, Lagos.

    Wabote said crude oil production, which is the mainstay of the economy, might be shut, if the NCDMB were to enforce full implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

    He stressed that some targets set in the Act are aspirations and unattainable because of shortage of capacity and technology limitation.

    He cited stated that all fabrications and welding must be carried out in Nigeria, yet there are no dock yards  where the hull of big vessels, such as the Egina FPSO could be fabricated.

    He said: “If we are to implement the Nigerian Content Law 100 per cent, we will have to stop oil production in Nigeria, develop non-existing capacity, then start production again. The Board enforces the law with pragmatism. Ninety-five per cent of our construction in the oil industry is steel, yet we do not have a steel mill in Nigeria. The oil and gas industry depends on sectoral linkages to deliver on some items. Moreso, local content is a marathon race and not a sprint.”

    On why the Board granted some waivers for the import of certain equipment used on the Egina project, Wabote said some equipment used in the oil and gas industry were proprietary,  such as the Christmas Tree, while some raw materials were not available in the country.

    “In such instances, the operator or contractor would request the Board for permission to import. When we give such waivers, we also mandate the companies to execute Capacity Development Initiatives (CDI) to close the capacity gaps,” he said.

    He explained that before a vendor would get waiver to procure items from abroad, it must show evidence that it is fully established in-country, employs Nigerians, and has made investments.

    He admitted that some contractors contravened the Nigerian Content Act during the execution of the Egina project, noting that such vendors were sanctioned by the Board.

  • Okwuchi, Sosoliso crash survivor visits SPDC

    It was an emotional moment when Miss Kechi Okwuchi, a survivor of the 2005 Sosoliso plane crash that claimed many lives, visited the Shell Petroleum Development Company of Nigeria Limited (SPDC) to express gratitude for the financial assistance the company gave her after the  incident.

    Kechi, her father’s friend, Mazi Victor Okoronkwo and her aunty, Mrs. Uloma Umeano, were received by Mr. Osagie Okunbor, Managing Director, SPDC and Country Chair, Shell Companies in Nigeria.

    Kechi, who was returning from school in Abuja to Port Harcourt, survived the crash but suffered third-degree burns. When her plight came to the notice of SPDC, the company  stepped in and ensured that she was flown to South Africa for treatment.

    She was later moved to the United States for more treatment.

    Kechi’s father, Mr. Okwuchi, in a letter read by Mazi Okoronkwo, said: “On December 10, 2005, Shell intervened, notwithstanding the medical uncertainty to save life regardless of cost; intervention propelled by a corporate policy that puts life above else. We thank and applaud you for it.’’

    Kechi added: “I am incredibly grateful and I walk through every day of my life knowing that I am here because of the amount of effort SPDC put into making sure that I stayed alive … you came when all looked dark and you shone a light of hope into my life.”

    She said her family would remain grateful to SPDC for ensuring that she received the best medical care available. ‘’I have never seen this kind of kindness from a corporation before,’ she added.

    Kechi also presented a certificate of recognition from the Shriners Hospitals for Children (Galveston, Texas) to SPDC for its thoughtful and generous contribution to the hospital.

    Okunbor said: “It was instinctive for us as an organisation to react the way we did as the most important thing for us then was to save and preserve lives. Even though we were not directly involved, the leadership decided that we had to intervene and do all we could as a company to help and today, I am happy we did.”

  • Why fuel crisis lingers, by IPMAN

    The Federal Government’s inability to improve fuel supply is caused by  the dysfunctional state of the refineries, failure to pay marketers their over N800 billion subsidy debts and poor maintenance of the majority of the 22 depots owned by the  Nigerian National Petroleum Corporation (NNPC), The Nation has learnt.

    Other reasons were the cost of fuel import and marketers’ inability to access foreign exchange (forex).

    It was gathered that many of the 22- state owned depots were not working  because NNPC lacks the capacity meet national fuel requirement.

    Investigation by The Nation revealed that NNPC is rationing fuel due to high cost of importation. During a visit to the NNPC Satellite depot in Ejigbo, a suburb of Lagos, it was discovered that the corporation supplies the depot between five and 10 million litres of fuel  weekly, instead of 21 million litres.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) Southwest Chairman,  Alhaji Debo Ahmed, said many of the depots were not working optimally.

    In a telephone interview, he said Aba, Port Harcourt, Owerri,  Ibadan and Mosimi depots were functioning at low capacity.

    He said the failure of the NNPC to distribute fuel evenly nationwide is also a cause of the problem.

    Ahmed said: “Often times, NNPC supplies fuel to private depots at N156 per litre instead of N133 per litre a development, which made some marketers sell fuel at higher rate than the official pump price. This, among others, contributes to the pocket of crisis, which the downstream sub-sector of the oil and gas industry is facing.’’

    Also, the IPMAN’ Chairman, Ejigbo Sattelite Depot, Mr Alanamu Balogun, said: “Fuel scarcity persists despite the establishment of two depots in Apapa, Lagos, last week, by private investors.”

    He said the inclusion of Folawiyo and Emadel depots to the depots in the country is yet to improve fuel supply. He said Ejigbo depot was battling storage problem as its five bigger storage tanks are not working well, adding that the development made the depot to use the smaller tanks for operation.

    “NNPC is yet to fix the tanks despite the fact the management of the depot has called its attention to it.  In a week, we receive 10 million litres of fuel. In the past three weeks, the depot has been loading fuel on Saturdays, which we supply to marketers within three days – that is Monday, Tuesday and Wednesday.“

     

     

     

  • Sahara Group renovates Ghana school’s workshop

    Leading African energy conglomerate, Sahara Group has  refurbished the Metal Works Technical workshop of Manhean Senior High Technical School in Tema, Ghana.

    Founded in 1991, the school  trains students in science, technology and innovation.

    The company constructed a shed for the carpentry and welding  workshop. It also bought machines and accessories.

    These include hand powered angle grinder/cutting tool, welding machines, Sun-Flex grinding disc, lathe machines, mounted drilling/milling/grinding machines, welding accessories as well as several electrical and safety gadgets.

    The students who take courses technical drawing, wood work, building/construction and welding now have ample space and modern tools to aid their training.

    Sahara Group, Ghana Country Manager, Tosin Etomi, said: “Our objective was simple. We saw the need for technical education and training to produce graduates that can perform competently in their chosen vocations without a need for pre-employment training. We responded to that need. These bright boys and girls will, ultimately, form part of the talent pool that will drive ongoing transformation in Ghana towards ensuring sustained economic growth and development.”

    According to the Head Teacher of the 27-year-old institution, Mr. Emmanuel Kobina Beddu,: “This intervention led by Sahara Group has exceeded our expectations. Not only do we have a bigger, better space for learning, we now have the equipment we need to teach our students and arm them with adequate technical and transferable skills. We cannot hide our excitement and satisfaction with what the Sahara Group has done for our school.”

  • Okwuchi, Sosoliso crash survivor, visits SPDC

    It was a moment filled with emotions when Miss Kechi Okwuchi, a survivor of the 2005 Sosoliso plane crash that claimed many lives, visited the Shell Petroleum Development Company of Nigeria Limited (SPDC) to express gratitude for the financial assistance the company gave her after the  incident.

    Kechi, her father’s friend, Mazi Victor Okoronkwo and her aunty, Mrs. Uloma Umeano, were received by Mr. Osagie Okunbor, Managing Director, SPDC and Country Chair, Shell Companies in Nigeria.

    Kechi, who was returning from school in Abuja to Port Harcourt, survived the crash but suffered third-degree burns. When her plight came to the notice of SPDC, the company  stepped in and ensured that she was flown to South Africa for treatment.

    She was later moved to the United States for more treatment.

    Kechi’s father, Mr. Okwuchi, in a letter read by Mazi Okoronkwo, said: “On December 10, 2005, Shell intervened, notwithstanding the medical uncertainty to save life regardless of cost; intervention propelled by a corporate policy that puts life above else. We thank and applaud you for it.’’

    Kechi added: “I am incredibly grateful and I walk through every day of my life knowing that I am here because of the amount of effort SPDC put into making sure that I stayed alive … you came when all looked dark and you shone a light of hope into my life.”

    She said her family would remain grateful to SPDC for ensuring that she received the best medical care available. ‘’I have never seen this kind of kindness from a corporation before,’ she added.

    Kechi also presented a certificate of recognition from the Shriners Hospitals for Children (Galveston, Texas) to SPDC for its thoughtful and generous contribution to the hospital.

    Okunbor said: “It was instinctive for us as an organisation to react the way we did as the most important thing for us then was to save and preserve lives. Even though we were not directly involved, the leadership decided that we had to intervene and do all we could as a company to help and today, I am happy we did.”