The Nation Newspaper

Category: Energy

  • Oil glut: NUPENG to fight redundancies

    Oil glut: NUPENG to fight redundancies

    The National Union of Petroleum and Natural Gas Workers (NUPENG) has vowed to resist any attempt by oil and gas operators to sack its workers.

    NUPENG Secretary-General, Joseph Ogbebor, said several thousands of workers have suffered unduly in the hands of operators in the downstream and upstream segments of the industry since the oil glut started last year, arguing that the issue would aggravate the problems in the sector, if not stopped.

    He said the body and the Department of Petroleum Resources (DPR) would ensure that oil and gas operators follow due process before they lay off their workers, adding that this is only way to check redundancy in the sector.

    He said oil glut was taking its toll on the industry because firms are winding down their operations.

    “We are studying the situation in the industry, with regard to the fall in price of crude oil, and we would take action on the issue soon. At the appropriate time, we would invoke section 20 of the Labour Act on oil firms operating in the country. Through this, we would ensure that the companies engage us (NUPENG) and the DPR in mutual discussions before they sack their workers.”

    According to him, why should downsizing remain the only visible option for the oil firms, adding that the issue needs to be sorted out between DPR and NUPENG on one hand, and the companies that want to retrench, on the other hand, before such activities are carried out?

    He said redundancies in the petroleum sector should be condemned by stakeholders, arguing that the idea would kill the industry fast if not checked.

    On fuel supply, Ogbebor said his members had been performing their roles of distributing fuel to designated outlets, in line with the directives of marketers.

    He said if Oando engages tanker drivers by mandating them to supply its outlets across the country, such drivers have no choice than to keep to the instructions of their employer.

    He said the role of tanker drivers was to lift fuel and take it to the approved outlets, and not to bother themselves with the issue of compliance with the new price regime of N86.50 per litre of petrol.

    He also said diversion of petroleum products is a criminal offence, adding that his association opposes it.

  • ‘Foreign exchange imbalance affecting power firms’

    The imbalance in the foreign exchange regime, occasioned by the falling rate of naira, is taking its toll on the operations of new power investors, the Chairman, Egbin Power Plc, Mr. Kola Adesina, has said.

    He said the power distribution companies (DisCos) are spending more money than before to buy equipment abroad, because  the naira is falling at abysmal rate.

    While speaking at a stakeholders’ meeting in Lagos, Adesina said the problem facing the naira has made it difficult for power firms  to survive, since they depend on Original Equipment Manufacturers(OEMs) in their   production.

    He said: “When we bought Egbin Power Company when the sector was privatised in 2013, naira was sold for N159 per dollar. At a point, the value of naira reduced further as it was sold for N179 to a dollar, and later N196 to a dollar at the official window. The situation was worse at the black market where dollar is sold for N220 and above. This is not without its attendant consequence on operators in the sector.’’

    According to him, spare parts used in the industry can only be procured in dollars, stressing that the development is having far-reaching effects on the performance of the operators.

    Adesina said despite the fiscal problem, among others, facing the sector, and the economy, Egbin Power has weathered the storm to record some successes.

    He said the achievements included increased megawatts (Mw) of electricity, thereby making the turbines functional, among others.

    Adesina said the recent one was the dedication of 220 megawatts of electricity to Lagos, by Egbin. He said this would not have been possible without the support of the Vice President Yemi Osinbajo.

    “When we choose to dedicate the 220 megawatts to Lagos, the Vice President, Osinbajo stood by us,” he added.

  • Eunisell bags HSE excellence award

    Oil and gas firm, Eunisell Solutions, has bagged an award for its Health, Safety and Environment (HSE) standards, and for its contribution to the achievement of 150,000 man hours lost time injury (LTI) free operations in Qua Iboe marginal oil field in Akwa Ibom State.

    The award, presented by the Executive Director, Network E & P, Chief Olugbemide to Eunisell Solutions was witnessed by elders of the host community, management of Network E & P and that of Eunisell.

    Chief Executive Officer, Eunisell Solutions, Mr. Dickson Okotie, described the recognition as the result of hard work and professionalism.

    “It is an honour to be recognised for professionalism, especially by your client. What we did in Qua Iboe has never been done in Nigeria; to build an oil production facility from scratch to first oil within 180 days on a marginal field, with the highest level of health and safety standards obtainable anywhere in the world is no joke. I’ll like to dedicate this recognition to our men on the field who work day and night to ensure that this project remains safe, successful and a profitable one for Network,” he said.

    The Executive Director, Network E&P, owner and operator of OML 11 in Qua Iboe, Akwa Ibom State, Chief Olagbemide, eulogised the company for not dropping its standards since the inception of the project.

    He noted that Eunisell not limited by its status as an indigenous oil and gas firm, surpassed all expectations and complied with safety standards in accordance with international best practices.

    Oil production began from the facility in March, last year and managed by Eunisell on a contractor financed basis for Network E&P Network, holder of the asset and Oando Energy Resources, a 40 percent working interest holder in the field.

  • Military’s, MDAs’ debt to DisCos soars to N45b

    •Utility providers engage Presidency for payment

    The debts owed the Electricity Distribution Companies( DisCos) by the military and ministries, departments and agencies (MDAs),  has risen from the N32 billion to N45 billion as at the end of last year, it was learnt yesterday.

    The Executive Director, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, told The Nation that the distribution companies were going through several challenges, especially in collection of payment for electricity supplied customers, adding that the worst debtor-customers are Federal Government’s MDAs and the military.

    He said previously, the outstanding debt owed by MDAs was N32 billion, but has grown to N45 billion. Owing to the difficulty in collecting this debt, the distribution companies are discussing with the Presidency on method of payment.

    Oduntan said the DisCos have been discussing with the government on method of payment since the time debt was N32 billion because they need that money dearly to purchase equipment such as meters, among others, and also oil the operation to serve the customers satisfactorily.

    He said Vice President Yemi Osinbajo has promised to intervene in the case and he is optimistic that government may start to deduct future bills and debt from source. He noted that the military and agencies have budgetary provisions for utility bills payment, and have no justification to owe. In the budget, they actually have allowances for utility bills’ payment.  These military formations are properly metered. It is not that they are on estimated billing or over-billed, and don’t have reasons not to pay but they felt it is their right not to pay for the power they consume forgetting that the current power sector is under the private sector control, he added.

    “We had a meeting with the Federal Government presided over by the Vice President, Prof Yemi Osinbajo, and he listened to all the stakeholders including the Nigerian Electricity Regulatory Commission (NERC), Market Operator (MO), Nigerian Bulk Electricity Trading (NBET), generating, and distribution companies. We all tabled our problems and the government assured us of looking at the issues. The Vice President promised us that the MDAs will pay the debts. We will continue to discuss with the government until the debt is paid,” Oduntan said.

    The ANED chief stressed the importance of the government agencies to pay the huge debt and the need for all electricity consumers to be committed to payment of bills promptly.

    He said due to supply value chain inefficiencies, about 50 per cent of power bought by the DisCos is not paid for. These include power theft, inadequate collection infrastructure, and insufficient/non-cost reflective tariff.

    The challenges, according to Oduntan, have put the distribution companies under serious financial pressure because DisCos are collection agents for the entire power industry. Therefore, shortfall in revenue collection by the DisCos affects the entire value chain, he added.

    He said for the country to have the desired level of electricity supply, all categories of customers should endeavour to pay their electricity bills appropriately and the government should encourage massive investment in the sector, he said.

  • An uncertain year for energy

    An uncertain year for energy

    Falling oil prices dominated discussions in the energy sector late 2014 and last year. From an all-time high of $106 per barrel in 2014, the price crashed to $28 last Monday. Oil price will still be the issue this year. Will it continue to drop or go up? Since oil is Nigeria’s major revenue earner, 2016 will be a tough year for the country, reports. EMEKA UGWUANYI.

    The slide in oil price has become worrisome to players in the industry. The concerns are higher in producer countries, such as Nigeria.

    To explain how challenging the situation is, this year, the government has proposed to borrow N1.8 trillion to fund the budget and may be compelled to even borrow more.

    When the budget was being proposed, oil price was above $30 a barrel, hence the oil benchmark for the budget was pegged at $38 a barrel.

    Today, the price has dropped to below $30 a barrel, creating a huge gap between the benchmark and the current reality. The fall will also adversely affect the power sector despite being controlled by the private sector.

    Ordinarily, Saudi Arabia’s and Iran’s escalating conflict could have spiked oil price in the international market, but this has not been as price slumped just after rising marginally for one day, with Brent crude, the world’s benchmark oil, selling at $34.27 a barrel, showing the level of supply glut in the global oil market.

    Saudi Arabia and Iran are leading oil producers in the Organisation of Petroleum Exporting Countries (OPEC) and indeed in the world. At the outset of the conflict, oil price rose marginally to $39 a barrel from about $37, but dropped below $35 a barrel. The OPEC reference basket rose to $31.79 a barrel from $31.27, and fell the next day to $31.21 a barrel and last Monday it had further dropped to $27.07.

    Expectedly, the Saudi Arabia- Iran conflict ought to have sent the price of crude skyrocketing, but this was not to be, as several factors, including excess supply turned the tide against the norm.

    According to analysts, the market oversupply was caused by self-sufficiency attained by the US, which previously was a major importer of crude oil. The US has just shipped its first oil export in many years. Also, other members of OPEC, especially Saudi Arabia, refused to approve production cuts by OPEC despite entreaties from other members of the organisation.

    The deteriorating Chinese economy also didn’t help matters. According to economists, Chinese yuan’s depreciation could mean the world’s second-biggest economy is even weaker than had been expected. Chinese Yuan last week exchanged 6.6956 to a dollar; the lowest since trading began in 2010 and the weakest in four and half years.

    The slump in oil price may continue despite the conflict between OPEC’s largest and second largest producers, as there seems to be no plan to cut production. If demand for oil continues  to drop and supply remains unchanged, the prediction that price will fall as low as $20 a barrel this year could  happen.

    The last time oil traded at $30 a barrel was in December, 2008, following decline in demand. But, unfortunately, the current situation stemmed from a massive oversupply, which may take price to the levels of the early 2000s when the market experienced a glut.

    Many traders view the current oil price decline as a sign that the world’s economies are falling apart. They are worried that the decline in the energy sector will overwhelm the rest of the economy, despite the fact that higher oil and gas prices are actually bad for most businesses.

    But the fact is that most businesses are getting a huge boost from the decline in oil. According to the President of Petroleum Technology Association of Nigeria (PETAN), an umbrella body of  oil producers and services companies, Mr. Emeka Ene, the period of low oil price is the best for oil producing countries to invest in exploration to find more oil in preparation for the era of high oil  price.

    “We have to recognise that we are going through a lot of uncertainties within the industry globally. Oil prices have fallen more than half of what they were a year ago. Invariably, people are asking, how is this industry going to go? Within the Nigerian context, the Nigerian economy depends a lot on oil. The oil industry is driven primarily by the price and the volume of oil being produced.

    “With these challenges, there are lots of great expectations of change and opportunities to grow the industry within these uncertainties. Oil exploration has to be continuous because you are taking something out of the ground without replacing it. Therefore, the day we start to cut down on exploration is the day our reserves will be limited and at some time, we will start to have a decline in our production. If that is not today, it will come in future. The beautiful thing is that it is not too late to start. This is the best time to do exploration, when the oil price is low and prices of services are low.

    “Therefore, this is the time to encourage exploration. However, exploration has to be actively encouraged. That is the key. Exploration will then create jobs. Apart from that, it will create multiplier effects, with the possibility of jobs to emanate from the process of finding and producing oil.”

    “We are also optimistic that the engagements across all the different stakeholders will continue to emphasise the importance of growing capacity of Nigerian companies in the Nigerian oil industry”, he added.

    Analysts are of the view that with the lifting of sanction against Iran,  output will double, which will further put prices under pressure. Iran has repeatedly said it plans to raise oil output by 500,000 barrels per day post-sanctions, and another 500,000 barrels per day shortly after that, to reclaim its position as OPEC’s second-largest producer.

     

    Impact of declining oil price on firms

     Since last year, oil firms have been taking measures to tackle the impact of the oil price slump. Over 20,000 workers have been laid-off since oil price crash in 2014. Emeka Ene, told The Nation that the over 6,000 technical workers, including geologists, engineers and other ancillary workers have been sacked following oil price slump.

    He said: “The oil service companies employ about 20,000 technical workers with indirect employees of about 100,000. These are people that by virtue of their services, do not have direct dealings with members of the Petroleum Technology Association of Nigeria.”

    He said the fall in price of crude oil has affected the operations of firms that provide technical services. Ene said the current reality in the oil industry is evident in the failure of service firms to secure and implement good contracts. “At a point, oil service firms were directed by oil exploration and production companies to reduce the cost of contracts by 30 per cent,” he said.

    Oil companies in North America are planning to cut $12.6 billion to $18.9 billion in capital spending this year on top of a $68.3 billion reduction last year amid falling oil prices, a Barclays survey found. The report said cutting spending by another 10 per cent to 15 per cent this year would bring North American oil investments down to as low as $106.9 billion. The same corporate budgets totaled $194.1 billion in 2014 and $125.8 billion last year, the British bank found in its breakdown of spending plans by about 175 oil companies.

    Even so, technological advances in drilling and bringing wells into production have “helped usher in a new era of efficiency in the oil field” and U.S. crude output probably will “remain surprisingly robust” though oil prices have crumpled, it said.

    Globally, Barclays’ survey found oil companies shed about 20 percent of their capital budgets to a total $521 billion last year and will cut another three percent to eight percent from their investments next year, marking the first time since the mid-1980s that oil companies will reduce spending two years in a row.

    Last year Nigeria through the Nigerian National Petroleum Corporation (NNPC) reduced its capital budget for joint venture oil operations by 40 per cent to $8.1 billion from $13.5 billion due to the slump in crude oil prices. The joint venture partners  of NNPC include Shell, ExxonMobil, Chevron, Total and Eni (Agip).

    The report said: “The NNPC has informed the joint venture partners that capital expenditures be cut down by 40 per cent from the proposed budget of $13.5 billion. $13.5 billion was the level that has been maintained in the past three years, but because of the drastic decline in oil prices that level cannot be sustained.”

    The government had proposed N1.22 trillion ($7.5 billion) to fund its share of the oil joint venture operations last year with foreign oil firms providing $6 billion. “But since this budget was agreed in the last quarter of 2014, there have been drastic changes in the parameters considered by the partners,” the report added.

    The former NNPC Group Managing Director, Joseph Dawha, also stated last year that three deepwater offshore oil projects and one shallow water oil field were at risk of being delayed or cancelled outright because of the decline in oil prices.

     

    Plans to check continued price fall

    Since early last year, some OPEC member countries have been making moves to persuade Saudi Arabia to agree to cut oil production to shore up price. Even at the OPEC meeting in December, OPEC President and Nigeria’s Minister of Petroleum Resources, Dr Ibe Kachikwu tried to convince the organisation’s largest oil producer but it refused to budge.

    Also Ecuadorian Ambassador to Nigeria, Mr. Leopoldo Rovayo Verdesoto recently called for cooperation of Nigeria as part of the efforts to halt the free fall of price of crude oil at the international market. Ecuador is a major oil producing country and a member of OPEC.

    Leopoldo Rovayo Verdesoto said there is need for cut in the current OPEC daily production, which is over 30 million barrels per day. He also called for the support of Nigeria in the push for the resuscitation of the OPEC monitoring committee, adding it would go a very long way towards halting the free fall of price of crude.

    He said Nigeria and Ecuador could play the lead role in addressing the current situation in the international oil market. “Nigeria and Ecuador could make a sign to the market and work towards reducing production on daily basis. What I would like to do is to improve the relationship between both countries in the field of petroleum and as you have known we are both members of OPEC, and there is a lot of work to do because there are lots of interest and even in OPEC there are different points of views, but it seems that we have to make signs to the market that we could work together to put production in a less daily basis.”

    The OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

  • Schneider, NAPTIN graduate 22

    Schneider, NAPTIN graduate 22

    Schneider Electric in partnership with the National Power Training Institute (NAPTIN) has graduated its first set of electricians at the NAPTIN Ijora regional training centre.

    The programme began in March last year. In all, 22 students graduated.

    The Country President, Schneider Electric, Mr. Walid Sheta, stressed the company’s commitment to the development of skilled personnel in the sector.

    “Our goal has always been to improve the quality of personnel in the sector. With the graduation of these electricians, our customers are assured of excellent services and it boosts our confidence, knowing that their homes will also be safer with installations done by properly trained and certified electricians,” he said.

    Director-General, NAPTIN, Mr. Reuben Okeke said he was happy that the issue of inadequate capacity building in the power sector, which had led to skill gap in generation, transmission and distribution and also in management of regulatory and policy framework is being tackled and that the graduation would further ensure that the issue becomes a thing of the past.

    “Partnering with Schneider Electric ensures that adequate training; which is an urgent requirement in the sector is becoming a reality. The inauguration of the Schneider Electric’s laboratory equipment and subsequent graduation of trainees has directly given the power sector a boost. What we seek now is to see more electricians being trained and ensure that graduations like this take place on a regular basis,” Okeke said.

     

  • Egbin to invest in Katsina, others 

    Egbin Power Company is planning to explore opportunities in renewable energy sources in Katsina, Adamawa, Borno  and other states in the Northeastern and Northcentral parts of the country.

    It’s Chairman, Mr Kola Adesina, who made this known during a stakeholders’ forum in Lagos, said the decision to invest in renewable energy in those states was borne out of the desire to help  improve electricity generation and distribution capacity in the country.

    He said: ‘’We would be building renewable energy plants in Adamawa, Katsina, Borno and other states, in line with our goals to improve power supply in the country. The renewable energy initiative would help in providing electricity to some sections of the populace that do not have access to grid electricity transmission. Our vision is to electrify Nigeria, and we have been nominated on the Committee that is charged with the responsibility of Lightening Up Lagos.”

    He explained that infrastructure has been a major problem in the sector, arguing that failure of the operators to get the requited equipment for power generation and distribution is affecting growth of the industry.

    Adesina said his firm would establish power industrial park, through which stakeholders in the value chain would be getting materials needed for production.

    According to him, the industrial park would be similar to the parks, which the Federal Government, has approved for the oil and gas sector.

    ‘’Our plan is to build industrial power for the electricity sector, as soon as we overcome our challenges. The park would help in fast-tracking the growth of the sector, by increasing the electricity generation and distribution output” he added.

    He said power is one of the three critical sectors that should be developed to move the economic forward, urging the Federal Government to help grow the industry.

    Adesina explained that the sector, especially the operators are grappling with huge debts, arguing that the issue has not allowed them to produce the desired growth.

    He appealed to the government to help Egbin Power Company, recover debts in the course of running its plant.

    The foreign exchange market, he said, is unfavourable, in view of the fact that the value of the naira has fallen drastically.

    He noted that, naira which was exchanged for N159 to a dollar few years ago, when investors were buying the assets of the Power Holding Company of Nigeria (PHCN), now sell for N197 per dollar at the official market.

    This, he said, made operators to spend more on importation of raw materials, with its undesirable consequences on the industry.

    this in line with the Federal Government’s decision to boost power supply via generating 33,000 gigawatts (Gwh) of electricity through renewable energy sources,

    It would be recalled that the Federal Government adopted the Renewable Energy Target(RET) scheme few years. The scheme, adopted from Australia, was to assist Nigeria to optimally maximise its renewable energy sources. The government had broken the scheme into two namely the Small-scale Renewable Energy Target and the Large-scale Renewable Energy Target in order to allow businesses and individuals invest in the off-grid transmission in order to increase power supply in the country.

  • Fed Govt plans to revive depots

    Fed Govt plans to revive depots

    Plans are underway to fix  depots that are under the management of the Pipeline and Product Marketing Company (PPMC), The Nation has learnt.

    The depots are located in Ejigbo, Mosimi, Ilorin, Aba, Ore, Kaduna, Gombe, Yola, and Enugu.

    Others are  Atlas Cove in Lagos and  Makurdi.

    It was gathered that many of the depots are not active due to several years of neglect by successive administration, a development that   informed the decision  of the Federal Government to revive them.

    An official of one of the companies hired by the government to secure pipelines across the country, said the Federal Government has carried out an impact assesment programme on the depots with a view to determining their level of viability vis-a-vis putting in place measure to repair them.

    The official, who was part of the   team that followed  the Managing Director of PPMC, Mrs Esther Nmandi Ogbue to Mosimi depot  recenlty, said efforts are at advanced stage to bring the depots back on stream soon.

    The sources who  spoke on condition of anonymity, said many of the moribund depots are located in states in the North-Eastern, North-Western and other parts of the country.

    “ The strategic locations of the depots, and the huge volume of fuel the depots are pumping before they went bad, was the major reason why the government is planning to fix them.

    Alluding to this,  was the Zonal Trustee of  Independent Marketers Branch(IMB) of National  Union of Petroluem and Natural Gas  Workers (NUPENG), Mr Kofo Oladehinde, who  said most of the depots are in dire strait.

    He said Ibadan, Ilorin and Ore depots have not been working for sometime, adding that the operations of the depots are strategic.

    He said failure of the depots to work well has affected fuel supply to some parts of the country.

    He said Mosimi depot is not operating optimally, adding that the government through the Pipeline and Product Marketing Company is putting in place measures to upgrade it.

    He said the upgrade would increase the capacity of the depot, as well as making it more useful.

    According to him, the upgrade was part of the restructuring programmes initiated by the government to return the depots to optimal level.

    ‘’Activities at Mosimi depot where I work have not been impressive due to operational hitches. We are hoping that the depot and others in the country are repaired to stimulate efficiency in the downstream segment of the oil and gas industry”, he said.

    The Managing Director of PPMC Ogbue, said efforts were being made to put the depots to optimal usage.

    She said the government was concerned with the state of the depots, hence the decision to repair them  to ensure uninterrupted supply of fuel to filling stations across the country.

    She said: “In places like Makurdi and Yola, petroleum products have not been pumped from depots in those areas in the last 10 years, and that means in that regioin, the government has to move trucks from Calabar to Enugu to Aba to Yola.

    It would be recalled that the Federal Government has put in place  measures to improve power supply. They include fixing of pipelines to improve fuel supply, rehabilitation of the refineries, direct importation of fuel by the Nigerian National Petroleum Corporation(NNPC) among others.

  • Firm unveils power equipment

    A firm, Mantrac Nigeria Limited, said it would provide a ‘Smarter Energy Solution’ to help improve power supply in the country.

    The company, which is the only organisation that has the franchise to distribute caterpillar products in Nigeria, said the solution is driven by gas.

    The Managing Director, Edmund Martin Lawson, who made this known during a seminar in Lagos, said the solution uses gas, adding that institutions and individuals, who can afford the equipment can use it generate electricity.

    He said Stanbic IBTC Plc has promised to finance the acquisition of the equipment through the CAT Financial Service.

    He said: “The engines will help in bringing power closer to the communities. The country is facing problems in the areas of generation, distribution and transmission of electricity. When the solution or technology is well deployed, there would be power in areas where it is used.’’

    He said industries would operate optimally once power is improved, adding that employment opportunities would be created in the process.

    He said: ‘’Given the fact that the economy has grown in the past at an average of six percent per annum without adequate power, coupled with the fact that Nigerian economy has been ranked first in Africa one can imagine what the country would do, if the power is stable.’’

    Martin-Lawson said the country is battling huge volume of untreated gas, stressing that if such gas is well channeled to where it can be used to provide electricity, the economy would be better.

    “If you use the gas well, you will be able to reduce the cost of power, power need is going into the next level and we should be able to assist as many as are willing to kick start the operation and the ones that are already in operation; we want to give them the support to achieve their objectives.

    “As of today, we do diesel but there is no argument that gas is the cheapest source of power. We cannot compare what we spend on gas to what we spend on diesel. Gas is lighter, it is environmentally friendly; it reduces pollution and emission; it is cleaner.’’ That is the closest to green energy.

     

     

     

    All that makes gas the most veritable source of driving down the cost of production”, Martin-Lawson maintained

    “We are saying that gas solution is effective, smarter solutions that can bring down the cost of power, there is a lot of potential in gas and we are helping companies take advantage”, he added

    The Territory Manager, Gas, Electric Power Projects, Sohail Anwar who noted that caterpillar has been in the gas business said what the company is doing at the moment is investing more in developing gas-powered technology because of the ever rising demand for electricity now and in the future.

    “It is green energy, it is environmentally friendly. It is much convenient for the environment so it is much better to invest in green energy. It is basically available; there is abundance of gas in Nigeria, so why not use the natural resource and switch over to a better and efficient gas-powered solution”, he stated

  • Fed Govt plans to revive depots

    Fed Govt plans to revive depots

    Plans are underway to fix depots that are under the management of the Pipeline and Product Marketing Company (PPMC), The Nation has learnt.

    The depots are located in Ejigbo, Mosimi, Ilorin, Aba, Ore, Kaduna, Gombe, Yola, and Enugu.

    Others are  Atlas Cove in Lagos and  Makurdi.

    It was gathered that many of the depots are not active due to several years of neglect by successive administration, a development that   informed the decision  of the Federal Government to revive them.

    An official of one of the companies hired by the government to secure pipelines across the country, said the Federal Government has carried out an impact assesment programme on the depots with a view to determining their level of viability vis-a-vis putting in place measure to repair them.

    The official, who was part of the   team that followed  the Managing Director of PPMC, Mrs Esther Nmandi Ogbue to Mosimi depot  recenlty, said efforts are at advanced stage to bring the depots back on stream soon.

    The sources who  spoke on condition of anonymity, said many of the moribund depots are located in states in the North-Eastern, North-Western and other parts of the country.

    “ The strategic locations of the depots, and the huge volume of fuel the depots are pumping before they went bad, was the major reason why the government is planning to fix them.

    Alluding to this,  was the Zonal Trustee of  Independent Marketers Branch(IMB) of National  Union of Petroluem and Natural Gas  Workers (NUPENG), Mr Kofo Oladehinde, who  said most of the depots are in dire strait.

    He said Ibadan, Ilorin and Ore depots have not been working for sometime, adding that the operations of the depots are strategic.

    He said failure of the depots to work well has affected fuel supply to some parts of the country.

    He said Mosimi depot is not operating optimally, adding that the government through the Pipeline and Product Marketing Company is putting in place measures to upgrade it.

    He said the upgrade would increase the capacity of the depot, as well as making it more useful.

    According to him, the upgrade was part of the restructuring programmes initiated by the government to return the depots to optimal level.

    ‘’Activities at Mosimi depot where I work have not been impressive due to operational hitches. We are hoping that the depot and others in the country are repaired to stimulate efficiency in the downstream segment of the oil and gas industry”, he said.

    The Managing Director of PPMC Ogbue, said efforts were being made to put the depots to optimal usage.

    She said the government was concerned with the state of the depots, hence the decision to repair them  to ensure uninterrupted supply of fuel to filling stations across the country.

    She said: “In places like Makurdi and Yola, petroleum products have not been pumped from depots in those areas in the last 10 years, and that means in that regioin, the government has to move trucks from Calabar to Enugu to Aba to Yola.

    It would be recalled that the Federal Government has put in place  measures to improve power supply. They include fixing of pipelines to improve fuel supply, rehabilitation of the refineries, direct importation of fuel by the Nigerian National Petroleum Corporation(NNPC) among others.