The Nation Newspaper

Category: Energy

  • Oil prices to sag till year-end

    Oil prices to sag till year-end

    Crude oil prices remained weak early this week as a slowing demand outlook implied oversupply will remain in place for months, prompting speculators to cut their bets on rising prices.

    Front-month United States  crude futures were trading at $44.65 per barrel at  five cents above their last close but more than 12 percent lower than their October peak.

    International benchmark Brent was four cents higher at $48.03 a barrel, but more than 11 per cent below October’s high.

    ANZ bank said it expected prices to remain low for the remainder of this year and that speculators were cutting their bets on higher prices.

    “Net speculative (United States) long positions declined by 13,841 contracts for the week ending 20 October,” the bank said.”We remain cautious on commodity prices into year-end given weak demand conditions.”

    On the demand side, research agency, Energy Aspects, said in its quarterly outlook that it “forecast a sharp slowdown in global oil demand across the fourth quarter of 2015, at 0.8 million barrels per day, which marks the slowest pace of growth in five quarters”.

    Energy Aspects said the ongoing oversupply in crude oil was starting to spill into the market for refined products, with a product stock-build of 0.6 million barrels per day seen in the third quarter.

  • Why marketers should support our $150m jetty, by Oando

    Why marketers should support our $150m jetty, by Oando

    To ease pressure on the Nigeria National petroleum Corporation (NNPC)-owned New oil Jetty (NOJ), marketers have been advised to patronise the $150 million jetty being built by Oando Plc.

    Oando Marketing Chief Operating Officer Mrs Olaposi Williams said congestion at NOJ would disappear on completion of the Jetty.

    Mrs. Williams  spoke with to The Nation on the sideline at the commissioning of Sapara Road in Apapa, Lagos constructed by Oando.

    She said the Oando Jetty, which is in Lagos, has about 30,000-40,000 tonnes capacity. It will serve oil marketing companies, NNPC and other companies operating in Lagos, she added. The jetty is located in the deep water at Marina, which would make it easier for bigger vessels to berth and further aid the growth of oil marketing companies.

    Mrs Williams said efforts were being made to partner with other oil firms to use the Oando Jetty in order  to decongest NOJ.

    She said: “The Oando Jetty has 30,000-40,000 tonnes capacity as against NOJ that has between 22,000 to 25,000 tonnes capacity. Also the jetty, which would be ready in the next few months, can accommodate four mother vessels. This means that more oil companies can take delivery of petroleum products at the Jetty without stress.

    “Collaboration is ongoing between Oando and other companies such as Mobil, MRS and others to use the Jetty. We are trying two major goals through Oando Jetty.”

    According to her, the use of Oando Jetty by Oando and others would help reduce congestion at NOJ, while at the same time help bring down the demurrage.

    Olaposi said the cost of demurrage paid by oil companies using jetty for their operation is very high, adding demurrage would come down when there is alternative to NOJ.

    She said there would be improvement in the operations of oil firms once demurrage cost is reduced.

    Olaposi said Oando would open more retail outlets across the country in order to improve the distribution of its white products.

    She said in the nearest future, the gridlock occasioned by the parking of trucks in Apapa, would be eliminated, adding that Oando would come out with sanctions for its drivers who park trucks on the road, thereby impeding the flow of vehicles.

    “Our Truck Marshaling Yard 11, which we commissioned and the Truck Marshaling Yard 1 that would be ready soon have standard operating procedures. One of the procedures is that any driver who does not have a business to do at the Yards would not be allow to park. This means that when a driver parks aimlessly and causes traffic, he would be arrested by the company,” she said.

  • ‘Improved power key to business growth’

    ‘Improved power key to business growth’

    Stakeholders  have agreed that improved power supply is vital to business growth in Nigeria.

    They gathered at a seminar organised by Mantrac Nigeria Limited to inform its customers about Caterpillar products, facilities, product support services, and new product options.

    The event, held in Lagos emphasised the growing need for improved power supply in the country. Speaking on “Power to grow your business,” the stakeholders applauded the country’s quest for improved capacity to generate power, maintaining that in the interim, private power solutions remained the most viable option open to business to augment the shortfall in power supply.

    The Managing Director of Mantrac Nigeria Limited, Caterpillar’s sole representative in Nigeria, Mr. Edmund Martin-Lawson, said: “The focus of the seminar is to enlighten the business community on the power to do business. Without power we won’t have energy; without energy we can’t produce. We need power everywhere and what we are saying today is that we have the power systems to grow business and move forward.”

    He noted that the world was now moving forward so rapidly and hybrid power systems that utilize solar energy and battery are now available to support the power needs of businesses. “Nigeria needs over 20,000 megawatts (Mw) of power but unfortunately what is being generated now is far too low. That is why there is need to bridge the gap between what is available and the power goals the country wants to realize in future,” he said, noting that the available products which meet customer needs ranged from hybrid, fuel to heavy diesel sets.

    “Definitely it is important for Nigeria to have power. The country has been growing steadily for some time. If we have increased power supply capacity, the growth rate which is currently in single digits will definitely be in double digit. What that means is that this country and economy definitely need extra power to move industries and businesses forward.

    “In the interim, that shortfall will come from power systems providers who have the capacity to provide the needed power equipment that will add more power through the country’s IPP project,” he said.

    Caterpillar’s Territory Manager, Stefan Laszenwski who is based in Geneva, Switzerland, assured of his company’s readiness to assist the country with power solution equipment to help in realizing her ever growing power needs. He said the in-thing in the world at the moment was progress, emphasizing that Nigeria needed to move forward and availability of power was key to such forward move.

    Laszenwski praised the country’s determined drive towards improved power generation, and noted that the country’s Independent Power Project (IPP) initiative could be enhanced with the latest range of equipment in his company’s stable. He said businesses and local communities could be boosted with products that could power several thousands of homes, islands, marine installations and Central Business Districts (CBDs). The products he said could run on gas, and with improved gas supply in the country, the era of poor power generation might be over soon.

    “I believe that what we at Mantrac are bringing in will improve the capacity of most Nigerian companies to do business,” he said. The option of gas-powered generators gives industrial customers up to 70 per cent savings on running cost.

  • Expert praises Buhari for restoring investors’ confidence

    Expert praises Buhari for restoring investors’ confidence

    Oil and Gas Council Managing Director, Drake Lawhead, has commended President Muhammadu Buhari for his commitment to the transformation of the country’s  oil and gas industry, saying foreign investors are developing confidence in the economy.

    He said for decades, foreign firms which were considering doing business in the sector  accepted certain realities that their boards found difficult to accept. He said those problems were well-documented, and that they would apply to all  companies, adding that it is undeniable that Nigeria’s foreign direct investment has been hampered by the perception, corruption and theft.

    Such ingrained perceptions do not disappear overnight, but there is a change in mood about the prospects for cleaning up the business practices of the industry that have all happened on the back of President Muhammadu Buhari’s election.

    Lawhead said: “The people we speak to in London and in Asia have kept an eye on many of the reforms that are sweeping through the Energy sector in Nigeria. Things like the appointment of Dr Kachikwu and the wholesale change at the Director level at the Nigeria National Petroleum Corporation (NNPC) and cancellation of contracts, etc., send a strong signal to companies here that Nigeria is serious about regaining the trust of the international business community. They are watching to see what happens now.”

    Lawhead added that President Buhari’s self-appointment as Oil Minister – something that is   unusual in Europe or America but which makes sense in Nigeria and for Buhari – has been viewed rather positively in the West; a sign that the President is serious about the importance of getting that sector right and has put himself in charge of it to make sure.

    Institutional change can be slow – there are too many vested interests that exist in bureaucracies for wide scale organisational change ever to be a simple matter. Yet, it does happen, it must happen for Nigeria’s oil and gas sector to thrive as it deserves to, and the early signs are that things are changing – and importantly, it’s a change that has been noticed by the international business community.

  • Osun gets micro-grid solar power

    As part of efforts to stem rural-urban migration, the Bank of Industry (BoI) has inaugurated a 24kilowatts (kw) micro-grid solar solution in two communities in Osun State.

    BoI Managing Director Mr. Rasheed Olaoluwa, said the project is in furtherance of the United Nations campaign for eco-friendly sources of energy. With this initiative, Osun is the first state to benefit from Bol’s intervention in the provision of renewable energy in Southwest, he added.

    The solar electrification project is located in Idi-Ata and Onibambu communities in Osun State. Olaoluwa, however, lamented that rural communities are the worst hit in terms of poor access to electricity, especially the off-grid arrears, which have always been without power supply and have resigned their fate to the use of kerosene lanterns, oil lamps, and other types of dangerous and unhealthy sources of light to be able to live daily.

    The development, he said, has hampered the socio-economic development of the nation as it has created an atmosphere that is not conducive for Micro, Small and Medium Enterprises (MSMEs), which are the drivers of the nation’s economic growth.

    He stated that the situation remained one of the main factors responsible for the concept of rural-urban migration. Olaoluwa noted that the 4,500 megawatts (Mw) of electricity generated from the national grid was grossly inadequate for a leading African economy like Nigeria with a population of about 170 million people, hence the intervention of Bol and the United Nations Development Programme (UNDP).

    The Bol chief said the bank is starting off with the provision of long-term financing for the installation of off-grid solar home systems in six communities in a pilot phase, as part of its Solar Energy Partnership with UNIDO.

    He said: “These communities with an average of 200 homes each are located in Anambra, Edo, Gombe, Kaduna, Niger and Osun States. Today, we have come to Osun State in partnership with Arnergy Solar Limited to commission a 24kw micro-grid solar electrification system in Idi-ita/Onibambu, a community which hitherto had no access to electricity.”

    The Governor of the State of Osun, Rauf Aregbesola urged the leader of the two communities to judiciously protect the installation and ensure that payments are promptly made for energy consumed so that the scheme can be self-sustaining to encourage the investor replicate such in other locations within the state.

    Aregbesola, who was represented by the Secretary to the State Government, Mr. Moshood Adeoti said: “As a responsible government, I want the Ministry of Water Resources, Rural Development and Community Affairs to carry out due diligence on the issue of appropriate pricing and adequate supply to each household. This is to ensure consumer protection against exploitation.”

    The Chief Executive Officer of Arnergy, Mr. Femi Adeyemo, said the application of technology for industrialisation is key to enthroning sustainable economic growth and development, adding that the off-grid solar rural electrification is to help reduce the wide gap/deficit in the energy sector in the country.

  • Gas to flood market soon, says group

    Liquefied Petroleum Gas (LPG) will soon flood the market Petroleum Gas Association of Nigeria (LPGAN) president Dapo Adesina has said.

    He said the product is coming from the Nigeria Liquefied Natural Gas Limited (NLNG) based in Bonny, Port Harcourt, Rivers State. Adesina said the supply is imperative in order to buoy availability and minimise the stress consumers have gone through in recent times to buy the product.

    Adesina dismissed allegations that the scarcity of the product was caused by technical problems. He said market forces were responsible for the shortage and slight increase in the price of LPG by operators, adding that NLNG has promised to replenish the market with the product.

    He said the scarcity of LPG in the country, was caused by the forces of supply and demand, and not technical issues. “In the past few weeks, the demand for LPG has outstripped supply in the country. The moment LPG vessels berth in Lagos from Port Harcourt, people waste no time in demanding for the product. Consumption of cooking gas has increased in the past few months because more people have seen the need to use it because it is a safer, healthy and friendly source of energy for domestic and industrial purposes,” he added.

    According to him, LPG consumption will exceed 350,000 tonnes in Nigeria before the end of 2015, in view of the fact that the demand for the product has increased.

    “The computation of the volume or tonnes of LPG consumed in a year is normally done at the end of the fourth quarter. By that time, operators must have compiled all the records of LPG supplied by NLNG, and consumed in the country. In 2014, 350,000 tonnes of LPG was consumed in Nigeria. Given the fact that the demand for LPG has increased in 2015, the consumption figure will be more than 350,000 when it is computed,” he added.

  • Eight nabbed for meter bypass in Ikeja

    Eight persons have been arrested for allegedly tampering with meters installed by Ikeja Electric at its Abule-Egba and Ikorodu Business Units.

    The suspects arrested for ‘meter bypass,’ were said to have deliberately manipulated meters installed in their residences to circumvent appropriate payment for energy consumed. The suspects who reside at No. 8, Ibrahim Adejare Street, Ajuwon, Abule-Egba, Block 7 Flat 5, Block 50 Flat 1, Block 10 Bungalow, Block 2 Flat 5 and Block 1 Flat 6 of Tinubu Estate, Odonla Ikorodu- Lagos, were apprehended by officials of the Nigerian Security and Civil Defence Corps (NSCDC) and Mobile Policemen on October 6 and 9, 2015, following a complaint by Ikeja Electric.

    According to a statement issued by Ikeja Electric, investigations are ongoing to ensure the suspects are made to face the wrath of the law, along with possible collaborators who are believed to be part of a notorious syndicate.

    The management said the company has been grappling with the menace of individuals who deliberately destroy the firm’s equipment and installations across its business units. The Managing Director, Abiodun Ajifowobaje said the company has within the last 18 months spent over N11million to malicious damage to its transformers, installations and upgrade equipment. The company has also lost revenue through meter bypass involving over 75,000 customers who have not paid their electricity bills in the last couple of months.

    He urged customers to be part of continuing efforts aimed at safeguarding equipment in their neighbourhood by reporting the activities of vandals and saboteurs to law enforcement agencies and/or Ikeja Electric business offices.

    The company has received the backing of various security agencies who have vowed to check the menace of vandals and energy thieves through prosecution. Ikeja Electric is currently installing advanced prepaid meters across its network in line with its commitment to service excellence.

    The company stated that the advanced meters, meter application forms as well as installation services are free and as such customers are advised not to pay adding that customers its helplines on 01-4483900, 0700-0-2255-453 and 01-7000250 or send an email to Customercare@ikejaelectric for help and clarifications.

  • Ikeja Electric rolls out programmes for efficient service delivery

    Ikeja Electric rolls out programmes for efficient service delivery

    The Ikeja Electric has begun the roll out of two vital programmes – Advanced Meter Infrastructure (AMI) and Customer Enumeration, Technical Audit and Asset Mapping (CETAAM), aimed at ensuring that customers are metered, and get quality service.

    The Advanced Meter Infrastructure (AMI) targets the metering of all customers with smart meters and the Company targets installation of 300,000 meters in the next three years.

    Chief Executive officer, Ikeja Electric, Mr. Abiodun Ajifowobaje said the roll out of the smart meters, which started last month, represents a remarkable step in the company’s quest for redefining service delivery in the sector. This development resonates with our new spirit, new drive and new energy identity, as we strive to create value for our customers, he added

    Ajifowobaje told reporters in Lagos that the meter roll out started in September with the installation of 6000 meters after the successful completion of the pilot scheme of the advanced meter installation phase which began in June this year. The Ikeja Electric is set to commence with the second phase of the project; the mass roll out of the meters. These meters are designed to enhance efficient energy usage and transparent billing in real time, he added

    According to him, the company aims to install 10,000 meters this month, and will be able to attain the peak monthly installation of 15,000 meters by December. He said the scope of the metering project is to deploy approximately 300,000 electric meters for Ikeja Electric’s residential, commercial and industrial customers between September 2015 and December 2016 in mapped out areas in all the Business Units of the Company.

    Ajifowobaje noted that Ikeja Electric’s Advanced Meter Infrastructure (AMI) is a state-of-the-art technology that enables utilities to read, disconnect and connect meters remotely and to detect individual customer outages quickly using a wireless communications network. The metering project will replace today’s meters with “next generation” electronic meter technology that improves customer service and enables customers to proactively manage their energy use and save money by giving them the power to control how much electricity they use against how much electricity they pay for.

    According to the Ikeja Electric chief, the scope of the metering project is to deploy approximately 300,000 electric meters for Ikeja Electric’s residential, commercial and industrial customers between September 2015 and December 2016 with installation of about 12,000 meters monthly in already mapped out areas in all the Business Units of the Company. With the metering project, the issue of estimation will be totally eradicated through improved billing. The customers will also be able to track the usage of electricity and eliminate energy wastage, he said.

    To also improve quality of service, Ikeja Electric has started Customer Enumeration, Technical Audit and Asset Mapping (CETAAM) project across its network .The project is slated to run from October 2015 to April, 2016.

    The project will involve mapping the location of each of the electrical network entities from the 132KV/33KV and 11KV systems to the distribution transformers and poles.  Ajifowobaje said: “It is going to be a thorough project that will ensure a solid foundation for efficient, equitable and transparent power supply to the esteemed customers of Ikeja Electric.

  • ’97m Nigerians don’t access grid electricity’

    No fewer than 97 million out of 175 million Nigerians have no access to grid electricity.  The remaining 78 million people who are connected to the grid face substantial power interruptions, the Energy Savers Nigeria, a non-governmental organisation (NGO) has said.

    In a paper titled: “The Nigerian Power Sector, A Performance Appraisal under the Buhari Administration” Moses Nasamu, a  member of Board of Trustees of Energy Savers Nigeria, said about 56 per cent of the population are connected to the grid, while 44 per cent  are not.

    He said an estimated 41  per cent of Nigerian businesses generate their own power supply to augment supply from the grid, in line  with the recent World Bank report on electricity situations in Nigeria, adding that the problem was caused by poor generation and distribution system and other systemic issues in the sector.

    It said Nigeria lags behind other developing nations in terms of grid- based electricity consumption with 126 kilowatts hour(kwh) per capita, stressing that electricity consumption is expected to be five times higher than what it is today in Nigeria, if we  consider the country’s Gross Domestic Product( GDP) alongside other countries globally.

    The paper said 25 per cent of Nigeria’s 12, 522 megawatts (Mw) of electricity installed reach the end user. “Widespread inefficiency means that only 3, 879Mw of this capacity is operational, with 3,600Mw transmitted and 3,100 distributed. Most of the shortfalls, which were about 5,381Mw, is capacity that is unavailable due to obsolete equipment and poor maintenance or due to ongoing maintenance and repair activities at existing power plants. Also, about 3,262Mw of electricity is non-operational primarily due to gas, water, high frequency, and transmission line constraints.”

    According to the paper, the sector has recorded some operational improvements, mainly driven by increased availability of gas since May 29th, 2015, when the Buhari/Osinbajo led government started.

    The paper stated that in August 2015, Nigeria hits historical highs as both peak generation and total energy generated across the system stood at 4,811Mw and 4,213 megawatts hour (mwh) respectively. It said transmission losses fell by 10 per cent between June and August 2015, compared to the first four months of the year.

    “Nigerians would recall that at the commencement of Buhari/Osinbajo’s administration in May this year, the sector was plagued with challenges,  which included under-utilisation of generating plants partly due to insufficient gas availability occasioned by  frequent vandalism of gas distribution assets, inadequate transmission infrastructure, high distribution losses, liquidity problem, among others,” the group added.

    They said electricity generation and distribution has improved relatively, despite the fact that the problems still exist in the sector. “The Buhari government has helped in restoring confidence in the sector through its decision to fast-track execution of the first set of World Bank partial risk guarantees, and granting of sovereign immunity waiver which aimed at increasing the rate of growth of the first tranche of project-financed Independent Power Projects (IPPs) and the interim execution of the contracts undertaken by the management of Transmission Company of Nigeria (TCN).

    On solution, the group urged the successor distribution companies to improve on their revenues in order to enable them fund what they described as ‘Wholesale Obligations,’ cater for their operating expenditure requirements,  invest in new and modern capacity, and ensure cost- effective tariff is provided for the teeming consumers of electricity in Nigeria.  They said when these measures are well implemented, power supply would improve and industrial activities will improve also.

  • Sahara urges investments in alternative energy

    Sahara urges investments in alternative energy

    The attainment of affordable energy through investments in alternative sources will enhance socio-economic growth in rural communities across the world by 2030,  Executive Director, Sahara Group Mr. Tonye Cole, has said at a meeting dedicated to the Sustainable Development Goals (SDGs) at the just concluded 70th United Nations General Assembly in New York, United States.

    Cole who represented Sahara Group – a leading African Energy, Power and Infrastructure Conglomerate – on the Advisory Board of the Sustainable Development Goals Fund (SDG-F),  told delegates that governments in developing nations need to explore more partnership platforms with the private sector in the quest for alternative energy sources.

    The meeting, which focused on Sustainable Development Goal 7 (Ensure access to affordable, reliable, sustainable and modern energy for all) was attended by President of the World Bank, His Excellency (H.E.) Mr. Jim Yong Kim, Foreign Minister of Denmark, H.E Mr. Kristian Jensen, Prime Minister of Benin, H.E Mr. Lionel Zinsou, European Commissioner for International Cooperation and Development, H.E Mr. Neven Mimica and President of the African Development Bank, H.E Mr. Akinwumi Adesina, among others.

    “Substantial investments are required to achieve affordable and sustainable energy in developing nations. Wind and solar energy are possible options that can be harnessed in rural communities where consumption is relatively low. With the right strategy and unwavering commitment from all stakeholders, we will be setting solid foundations for deploying alternative energy sources to transform lives and small businesses for disadvantaged communities across the globe,” Cole said.

    Cole said governments and power companies need to collaborate on sensitising the populace on the value chain of the power sector to ensure support for policies as well as address incidences of energy losses and theft that disrupt energy availability in developing nations.

    Delegates at the meeting were unanimous in urging the development of location specific action plans as the world seeks to achieve SDG 7. World Bank President, Kim said following its collaboration with the UN on the Millennium Development Goals (MDGs), the World Bank was excited about SDG 7 and further partnership with the private sector in a bid to ensure universal access to affordable, reliable and modern energy for all by 2030.

    Adesina urged African nations to take ownership of the process of taking affordable energy to rural communities, adding that his tenure at the ADB would focus on promoting sustainability and maximum impact for all interventions midwifed by the institution.

    Sahara Group has among other initiatives and collaborations, been promoting alternative energy sources through the “Sahara Light Up Nigeria Challenge,” a capacity building competition that seeks to produce inventions that support renewable, alternative and sustainable sources of power supply. The competition, which the company hosts through Sahara Foundation, inspires students of higher institutions of learning across Nigeria to explore opportunities for achieving sustainable power supply within their environment.  Sahara is exploring opportunities of replicating the project across other locations where it operates.

    In 2015, some students from the winning institution, Kaduna Polytechnic, invented a self-running hydro-power system that runs solely on the kinetic energy of water. The energy produced is stored in a 75-litre enclosed water tank that houses a pump and other materials required to drive generation of electricity. The technology is made from locally modified and recycled parts to ensure that it is environmentally friendly.