The Nation Newspaper

Category: Energy

  • Don seeks support for waste-to-power initiative’

    The waste-to-power initiative by the Federal Government for energy sufficiency  requires the support of stakeholders for it to succeed, a former Country’s President, International Association of Energy Economics (IAEE), Prof Adeola Akinnisiju has said.

    He told The Nation that the government’s decision to call for research into waste-to-power project, is good and capable of making Nigeria achieve its energy potential.

    However, the lack of commitment by the stakeholders could mar the success of the initiative, he added.

    According to him, technologies for collection, processing and conversion of wastes into energy must be available in the country before its potential could be harnessed for the development of socio-economic activities.

    He said: “In developed countries, such as the United States, Germany and others, where wastes were processed and converted into energy for electricity supply, the use of variables, such as technologies, researches, trainings of personnel for the project, and cooperation of members of the communities, which the initiative is meant for, are considered.”

    He said for Nigeria to achieve success in the initiative, those variables must be considered and used.

    He said the smaller volumes of electricity that would be generated from the project would boost electricity supply.

    He urged Nigerians to support the waste-to-power initiative, the same way they invested in the assets of Power Holding Company of Nigeria (PHCN).

    When investments are made in the various facets of energy, he said, the country is  assisting to make power available to its people. He said firms that invest in the waste-to-power project, are sure of getting enough waste in the country to generate electricity.

    The Minister of State for Power, Works and Housing, Mustapha Baha Shehuri, had called for  research into waste-to-power initiative during a meeting in Abuja with the Vice Chancellor and members of the Governing Council of the University of Maiduguri.

    He said the initiative could improve electricity supply in the country, if properly implemented.

  • NLNG bags CSR Excellence award

    NLNG bags CSR Excellence award

    Nigeria LNG Limited (NLNG) has been recognised for the outstanding impact of its $12million pan-Nigeria University Support Programme (USP,) with  the Excellence Award by the Abuja Chamber of Commerce and Industry (ACCI).

    The award is given to companies, whose Corporate Social Responsibility (CSR) projects impact society without benefit to the company, said the Manager, Communication and Public Affairs, NLNG, Tony Okonedo, in a statement.

    In a ceremony in Abuja, the ACCI said after research and comprehensive analysis from highly professional team of business intelligence experts, NLNG was selected for the Excellence Award for its CSR work especially its pan-Nigeria University Support Programme (USP).

    Receiving the award on behalf of the Managing Director and Chief Executive Officer of NLNG, the General Manager for External Relations, Kudo Eresia-Eke, said: “We are very pleased to receive the Excellence Award for CSR from the Abuja Chamber of Commerce. There are different dimensions to this award. Firstly, this is a testament to our core values which guides our work. We stand on the values of Integrity, Teamwork, Excellence and Caring. It is great to see that these values have worked for us in our behaviour and interaction with our stakeholders, our operations, our CSR projects and in fulfilling our vision of helping to build a better Nigeria.

    “On the other hand, our success and award will inspire other companies to emulate us and even do it better than we have done. The award reminds us of the need for companies to think broadly in CSR terms for purposes of moderation and balance in the nation. Balance is what ensures durability.”

    ACCI President, Mr. Tony Ejinkeonye, said: “Neither integrity nor excellence was compromised in choosing Nigeria LNG Limited. You merit it by all relevant parameters and that is why you are being awarded. Your works and actions were judged fairly and you were chosen with nothing but the principles of excellence and integrity. Your organisation gives us a lot of hope for the future of our nation.”

    The University Support Programme (USP) is a $12million project approved by the Board of NLNG to give structured support to the development of research and scholarship in the country. Through this project NLNG is building and equipping engineering/technical laboratories with cutting-edge engineering equipment in six universities drawn from Nigeria’s geo-political zones in support of teaching and research.

    The six universities, Ahmadu Bello University, University of Port Harcourt, University of Nigeria, Nsukka, University of Ilorin, University of Ibadan and the University of Maiduguri, were selected following research which established their top rankings in the country. The research was backed by the National Universities Commission (NUC).

    Ahmadu Bello University, one of the selected universities, has already launched its laboratory in November 2015.

  • Force Majeure on Nigeria’s Forcados lifts market

    Supply outage from the Shell Petroleum Development Company Limited (SPDC) joint venture in the Forcados facility has positively affected the price of crude oil in the international market, it was learnt.

    Shell declared force majeure on oil liftings from the Forcados export terminal in Delta State owing to a leaking pipe, which resulted in shut-in of about 400,000 barrels of oil per day.

    The 48-inch diameter export pipeline, shut last month and planned to be reopened in April, is one of Nigeria’s biggest pipelines.

    The Organisation of Petroleum Exporting Countries (OPEC) in its  Oil Market Report for this month, said the force majeure and outages around the Mediterranean and Turkey have helped to boost the market.

    It said: “Outages around the Mediterranean, with Turkey’s Ceyhan pipeline down, and in West Africa, with force majeure imposed on shipments of Nigeria’s Forcados until April, have helped boost North Sea prompt prices. Supply distribution in the North Sea itself has also helped.”

    The report also noted that after three months of sharp declines, crude oil futures recovered amid numerous positive factors that ignited speculations that oil markets would soon be balanced. This suggested that the 20-month sell-off could be hitting bottom, it added.

    While other grades were gaining, the United States’West Texas Intermediate (WTI), was impacted by crude stock-builds in the United States.

    Also what eased out sharp deterioration of the market recently, according to the report, is a proposal for a production freeze at January’s level by major oil exporters, and more news about an additional oil producer meeting in March, as well as further layoffs by service companies and related reports about a complete halt of fracking activities by some companies, all lent support to the market.

    Market sentiment was also helped by an eighth-straight weekly drop in the number of US rigs drilling for oil, project deferments in the US shale industry and job cuts that will slow production.

    Crude oil futures also rose after the US Energy Information Administration (EIA) estimated US crude production will decline this year and next, helping the market rebalance gradually. The EIA said utilities withdrew 48 billion cubic feet (bcf) of gas from storage during the week ending 29 January. This was above the market expectation of a 40 bcf decrease; however it was significantly lower than the previous five-year average of 137 bcf for that week. Total working gas in storage stood at 2,536 bcf, or 45.6 per cent higher than at the same time the previous year and 35.6 per cent higher than the previous five-year average.

    Also disruptions to crude supplies in Europe and higher equity prices on Wall Street on the back of positive US economic data also supported oil. Crude futures also drew support from China’s move to boost its slowing economy, injecting an estimated $100 billion worth of long-term cash into the economy to cushion the pain from job layoffs and bankruptcies in industries plagued by overcapacity, the report said.

  • APC by Schneider Electric rewards partners

    APC by Schneider Electric rewards partners

    APC by Schneider Electric, a global leader in integrated critical power and cooling services, hosted its vendors in Port Harcourt, the Rivers State capital to its yearly resellers’event.

    The event designed to reward partners with outstanding sales performance and to build business relationships with new and existing partners,  is hinged on five critical factors – channel profiling, alignment with business opportunities, empowerment, enablement and profit.

    This year, Kerryman Computers, Port Harcourt was recognised for its outstanding sales performance in 2015. Its Chief Executive Officer, Mr. Emmanuel Obiukwu, said he was very happy with the award.

    “The quality of the APC products is a distinguishing factor. I have never regretted being an APC channel partner. You are trained in every aspect and this is real value for your business,” he said.

    Schneider Electric’s Vice President, Retail, Mr. Oluwaseun Oloyede, highlighted the benefits of being an APC by Schneider Electric channel partner. He said that financial differentiation, including upfront preferred pricing, an opportunity registration programme, back-end incentives and other opportunities to ensure that the partner relationship is profitable to the vendors. These are some of the things vendors stand to gain for being partners, he said.

    “Our channel partners are significant part of our business. They figure prominently in our planning and strategy process. This is the basis for our desire to reward those who identify with the programme to enable them increase their profitability and create demand for products and services from APC by Schneider Electric,” he added.

  • ‘NASS, judiciary cannot reverse new electricity tariff’

    ‘NASS, judiciary cannot reverse new electricity tariff’

    The National Assembly and the Judiciary’s resistance cannot achieve the reversal of the new electricity tariff, an expert in Energy Jurisprudence, Dr Ayoade Adebayo has said.

    Adedayo, who was the Head, Department of Energy Law, University of Lagos (UNILAG), said neither a judicial pronouncement nor pressure from the National Assembly can reverse the new tarifff, adding that it is only the Nigerian Electricity Regulatory Commission (NERC) that can legally do so.

    He told The Nation that it is only NERC’s chairman and his commissioners can  reverse tariff as stipulated in the Electricity Power Sector Reform (ESPR) Act of 2005,  and not any arm of the government.

    He said: “The NERC is being run by an acting Chief Executive Officer, instead of a chairman and commissioners, who are empowered to suspend or reverse the tariff in accordance with the Electricity Power Sector Reform Act of 2005.  Therefore, both the politicians and the courts cannot achieve meaningful results on the issue.

    “It is only when the Board of the Commission is reconstituted by the Federal Government, and a chairman and commissioners were appointed to handle it that a reversal of the new tariff can take place. There is nowhere in the world that electricity business is politicissed and it records success.  Electricity issues are sensitive and should not be trivialised, and if we trivialise it, we would enjoy it.

    “A lot of calculations must be made before tariff is fixed. This is being done in order to enable investors get returns on investment.  At this juncture, some questions need to be asked. What are the politicians who are representing their constituencies in the National Assembly doing on the issue? What would the court say on the issue supposing the matter is taken to court? They are doing nothing.”

    According to him, the responsibility of fixing the tariff or reviewing it lies with the NERC.

    Adedayo said NERC is one of the agencies, whose role is key to the success of an administration in the country. He said the Board of NERC and other sensitive agencies are vital to the sector, adding that the only way the government can show Nigerians that the board of NERC is relevant, is to re-constitute it as soon as possible, in order to effectively manage the power sector.

    He said the sector requires between $50billion and $100 billion to produce the megawatts (Mw) of electricity that would make industries operate at optimal capacity, adding that achieving the feat is not possible when people play politics with the sector.

    The National Assembly has kicked against the tariff by the Federal Government. Prior to its introduction last month, the National Assembly, human rights groups, members of Organised Private Sector (OPS), such as the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industries (LCCI) and others, have tried to stop the government from implementing it but to no avail.

  • ‘Why V.I., Lekki, Ajah, others are in darkness’

    ‘Why V.I., Lekki, Ajah, others are in darkness’

    •EKEDC promotes spokesman, others

    The trip in a line from the Egbin Power Station caused the power outage in some areas of its jurisdiction since Sunday, the Head, Corporate Communications, Eko Electricity Distribution Company (EKEDC, Mr. Godwin Idemudia, has said.

    He said the problem affected residents of Ajah, Lekki and Alagbon to get power.

    Other areas affected by the outage include Lagos Island, Ikoyi, Victoria Island Lekki, Ajah, and Ibeju, Idemudia said, adding that  efforts were being made by generation and transmission technical personnel to repair the fault.

    Idemudia appealed to customers to bear with the company, and that supply to the affected areas would be restored soon.

    The spokesperson of Transmission Company of Nigeria, Lagos Region Mrs. Celestina Osin, confirmed that the blackout was as a result of a detachment on the wire of the Egbin-Ajah 330KV Transmission Line3.

    She said: “Our team of maintenance engineers is already at work to rectify the fault as quickly as possible, with the aim of getting customers back to the system. We therefore, apologise to all affected customers to bear with us for all the inconveniences caused by the blackout. We assure customers of a speedy restoration of power.”

    Meanwhile, Eko Electricity Distribution Company has promoted  some top staff members.

    According to a statement, Idemudia was promoted from Assistant General Manager (Corporate Communications) to General Manager.

    Principal Managers Uzoh Obialeri, Femi Adewumi and Iyabo Iledare, have moved up  as Assistant General Managers.

    The District Manager, Islands District, Oluwafemi Olaoye and Uthman Saheed Abiodun of Finance and Accounts Department are now Principal Managers, while Ovie Adjekpiyede of Projects Department and Iheoma Chukwuka of Legal Department were promoted Senior Managers.

    The company said the exercise was  continuous  and a demonstration of the company’s unwavering desire to position itself as a worker-friendly organisation.

     

  • Expert seeks finance devt bank for power sector

    The Group Managing Director of CFL Group of Companies, Mr. Lai Omotola, has canvassed the establishment of a finance development bank for the power sector to address the frequent changes in electricity tariffs.

    He said the recently approved 45 percent increase in electricity tariff by the Federal Government not  not the  answer to the crisis in the power sector. Omotola attributed the increase to the failure of indigenous companies that bought the nation’s power assets to source for the technical partners that could bring in some equities.

    Omotola in an interaction with reporters in Lagos, stated that Nigerian banks provided more than 80 per cent of $2.6 billion that was used to purchase the power assets in 2013 on short tenor loans.

    He said: “It would have been the other way round and the sector would have been virile, had the investors been mandated to bring in foreign investors who would bring in their equities in terms of the capital mix, about 60 percent equity.”

    He explained that most of the funds were sourced from the banks. It is debt, which is now creating a little bit of pressure on our financial system. We find a situation whereby the Nigerian banks are the major, if not the sole financiers of the acquisition of the power assets.

    “There are two factors with the Nigerian banks. One is high interest rate. Two is the tenure of their funds. These factors mean that commercial banks by their very nature cannot finance the electricity industry. They can only serve to raise working capital incentive. What we find today is that the Nigerian banks are financed in dollar-dominated terms.

    “Already, the interest rate has gone on the high side. Even, the value of dollar to naira had doubled over the space of two years. The resultant effect is that the accounts of our indigenous companies are not doing well with our banks.

    “If their accounts are not doing well with the banks, the ability of the companies will be stalled. Also, the ability of the indigenous companies to pay loans will be stalled. Finally, the ability of the indigenous companies to generate additional funding will be stalled,” Omotola said.

    He said the Nigerian banks could only finance projects for about two or three years after which the banks would want to see their funds coming back, so our banks are not suited to fund the power sector. He faulted a statement credited to the Minister of Power, Works and Housing, Mr. Babatunde Fashola that no bank would want to fund the power industry because of the low tariff, which makes it not bankable before the current controversial increase.

    Omotola challenged Fashola to name the bank he was referring to, noting that if Fashola was referring “to Nigerian banks, the business model of the indigenous companies will not work. The interest rate and fund tenure will not make it work.”

    He urged the Federal Government to set up a finance development bank that is strictly meant for development projects such as power projects. If our indigenous banks will play any role, it will be in the area of providing working capital. For these indigenous companies in power sector to survive, they need very low interest rate with very long-term loan, he said.

  • Chevron eyes $17-22b annual capex for 2017-18

    Chevron eyes $17-22b annual capex for 2017-18

    American oil giant, Chevron Corporation, has said it intends to achieve capital spending budget of between $17 billion and $22 billion yearly for 2017 and 2018.

    The oil firm’s executives at its yearly security analyst meeting in New York reiterated priorities, expressed confidence in the company’s near term outlook and emphasised an advantaged position when markets rebound. They also highlighted upcoming project completions and shale drilling efficiency.

    “We’re completing major projects that have been under construction for several years. This enables us to grow production and reduce spending at the same time, which should improve our net cash flow significantly,” said John Watson, Chevron’s chairman and chief executive officer.

    Watson reiterated the importance of dividend growth and maintaining a strong balance sheet in the company’s financial priorities, noting the company’s record of 28 consecutive years of dividend increases, and plans to limit debt increases beyond 2016.

    “Industry conditions are tough right now, with low oil and natural gas prices. We believe markets will improve, and we’ll be well positioned when they do. We have an excellent upstream and downstream portfolio, and we are driving operating and administrative efficiencies across the company,” he added.

    The Executive Vice President, Upstream, Jay Johnson, highlighted key plans. “We’re focused on safe, reliable operations and effective project start-ups and ramp-ups. At Gorgon, we’re producing LNG and the first cargo is expected to ship next week. With an advantaged position in the Permian and a deep portfolio of operating assets, we’re transitioning our spending to more short-cycle, higher-return activity that utilises existing infrastructure. We have a portfolio of assets that should allow production growth through the end of the decade, even at moderate prices,” he said

  • Unbundling NNPC is not an option for PIB, says auditor

    Unbundling NNPC is not an option for PIB, says auditor

    Splitting the Nigerian National Petroleum Corporation (NNPC) into several companies may not address the problem of lack of clarity in the fiscal terms,  Oil and Gas Auditor, John Adidi, has said

    Adidi, who spoke to The Nation on telephone, said when the laws guiding the industry, including the fiscal regime for the Joint Ventures (JV) and the Production Sharing Contracts (PSCs), were not made clear, it would not bring foreign investors back, adding it should rather be a reform.

    He said: “What the government should have done is to take a general look at the petroleum industry bill (PIB) and represent it either in bits so that whatever law that is made would be current.”

    The Petroleum Industry Bill (PIB), when passed into an Act, becomes the master reference law that governs the petroleum industry – from the upstream division (exploratory, development and production activities) through the midstream (gas processing) to downstream (servicing, refining, distribution, transportation,marketing/retailing)

    He said though crude oil price was falling globally, nevertheless oil is still the number one revenue earner for the country.

    He said the country needed to have a framework because anybody investing in the oil and gas is investing for the long term because it is capital intensive.

    “There is no way an investor would put money when he doesn’t know what the laws are, especially when the fiscal regime is not clear. No wise investor can put his money in the Nigerian oil and gas sector,” he added.

    While in support of the government policy to make the NNPC better run as a national oil company, Adidi maintained that it should be part of a larger reform. “NNPC still remains too complex so you need to have it broken down. It is too complex and big, that is why it is difficult to be handled by one person,” he said.

    Adidi said for now, there is no PIB. According to him, the last PIB was the 2012 version, which got to a certain level before the seventh assembly wound up

    He argued that the PIB not being passed into law meant that industry still operates the law that has expired in the country. He said the PIB was supposed to be reintroduced to the National Assembly by the executive because it is an executive bill.  According to him, the House of Representatives had indicated that they have been waiting for that bill to be reintroduced and the executive appears not too keen to do that, rather they wanted to use the extant legislation to do whatever policy review and reform they want to do.

    “One would have expected that the present executive looks at that PIB again and remove what they don’t want and represent it to the National Assembly because the bill has to go through the whole process again, first reading, second reading, committee stage and the third reading,” he said.

    Adidi said there is no clarity in the law guiding the industry. “We are in a depressed economy and the revenue due to the government is falling drastically. There is need for the government to have a think-tank that will look and carry out various economic researches, looking at how best to diversify the economy away from oil and then ensure that the revenue was increased to run the social programmes that the government has embarked upon,” he said.

  • Eko DisCo partners Mojec on smart meters roll out

    Eko Electricity Distribution Company Plc (EKEDC) is partnering with an indigenous smart meters manufacturing company, Mojec International Limited, to roll out smart meters for its customers.

    This was made known by the management of EKEDC during an inspection tour of its central store located at Ijora Olopa area of Lagos State where thousands of Mojec smart meters are in stock and ready for installation for the customers.

    The Managing Director, EKEDC, Oladele Amoda, said the distribution company under the new metering programme, will ensure that all customers within its network are provided with smart meters in line with the objective of adequately metering unmetered customers and those that have analogue and malfunctioned meters.

    “This new prepaid meters roll out plan is a massive one, as you can see, we have several thousands of smart meters in our store and our engineers have already commenced installation for the customers. We want to assure all our customers that we would not relent in our effort to ensure all customers are provided with prepaid meters within few months,” he said.

    Amoda assured of the company’s commitment to completely eradicate estimated billings, which he noted, is one of the major issues in customers’ dissatisfaction and distrust of the distribution companies (DisCos) under the old Power Holding Company of Nigeria (PHCN). He also restated EKEDC’s resolve to constantly improve supply and enhance consumers’ satisfaction.

    He praised Mojec International Limited for its resolve and commitment as a trusted partner to the utility as well as its provision of world-class quality meters, which are now being deployed to customers.

    The Managing Director, Mojec International Limited, Ms. Chantelle Abdul, explained that the firm’s prepaid meters are of international standard and are tropicalised for the Nigerian environment, to withstand the weather condition such as temperature, humidity, meter tampering and energy theft. Meters manufactured in Nigeria by indigenous companies have been specifically designed and crafted to withstand the extreme weather of time and humidity condition as well as theft situation peculiar to the Nigerian environment, she added.