The Nation Newspaper

Category: Energy

  • Better days coming, firm tells customers

    NEWpower firm, the Ikeja Electricity Distribution Company (IKEDC) has said it is doing everything possible to meet customers’ needs.

    It promised them better service delivery in the days ahead, saying it is in continuous engagement with its Korean technical partners to ensure seamless and equitable distribution of power across its network.

    The firm made the pledge during a meeting with customers as part of its Corporate Social Resposibility (CSR) and sensitisation campaign.

    Commending them for their support, the General Manager, Customer Service, Olori Olubukola Osiberu, said IKEDC remained committed to delivering world-class service with the support of its technical partners and its customers.

    He said to the CSR was designed to provide a platform for IKEDC to interact with the public to create better understanding of its activities as well as the rights and the responsibilities of the consumers.

    She explained that distribution companies are at the end of the energy value chain and can only distribute the power generated and transmitted by GENCOS and TRANCOS. She urged customers to show more understanding and take advantage of IKEDC flyers containing contacts of its principal officers to make complaints and contributions that will move the sector forward.

    She stressed that gas shortage, vandalism, sabotage and energy theft as key challenges bedevilling the process of power supply in the nation. “The challenge of inadequate gas supply is huge and what we have been getting as DISCOS has reduced drastically. We are also faced with the challenge of vandals destroying our facilities and installations. However, we are committed to ensuring equitable distribution of available power to our customers at all times,” she said.

    A representative of Ikeja Local Government Chairman, Yomi Afolabi, commended IKEDC for organising a platform for customers to present their complaints. He urged the company to provide customer service points for easy access to the company and overhaul its metering system to eradicate estimated billing.

    “I am appealing to all residents in Ikeja and its environs to be patient with the new investors and owners of IKEDC as they continue to work towards meeting our need for uninterrupted supply in the nearest future,” he added.

    Discussions at the meeting centred on power outages, estimated billing, extortion and absence of pre-paid meters and Osiberu agreed with that the power sector requires an overhaul of existing infrastructure, investment in new technology and capacity building to enable the nation move to a position of uninterrupted power supply.

    She also urged customers to play their roles as stakeholders in the power sector by reporting cases of vandalism and extortion to relevant authorities as well as ensuring prompt payment of their bills.

     

  • Power: Govt, investors meet over gas

    Power: Govt, investors meet over gas

    The Federal Government is meeting with the new power firms and relevant agencies to address the acute gas shortage which has caused a drop in electricity supply nationwide.

    The meeting will continue until solution is found to the problem, it was learnt, at the weekend.

    At a meeting convened by the Nigerian Electricity Regulatory Commission (NERC) in Abuja, the stakeholders were said to have expressed concern that rather than improve, power supply is worsening under the new firms.

    An official of one of the firms said their major challenge was gas supply. He said: “We have a challenge now but we are still meeting with the government people and people in the gas sector to find a way out because we have not had our best in terms of gas supply.

    “We have the capacity, though it is a little below the installed capacity but over the past three to four months, we have not reached our available capacity because of gas challenges. We had a meeting in Abuja called by NERC on how best to tackle the challenges. Part of the bigger challenge that was discussed was the issue of gas. There was another meeting in Abuja over the same issue.”

    The Nigerian National Petroleum Corporation (NNPC) and its subsidiary, Nigerian Gas Company (NGC), were summoned to explain what they are doing to address the issue.

    NNPC Group Managing Director Andrew Yakubu said pipeline vandalism was jeoparding efforts to boost gas supply to power.

    He said: “Despite these efforts, the gas sector has been faced with a major challenge in pipeline vandalism and this has significantly eroded available gas supply to the power plants. As at last week, over 30 per cent of the installed gas supply capacity was out due mainly to vandalism. This is equivalent to the gas requirement to generate about 1,600megawatt (MW) of electricity.

    “The pipelines involved are the Escravos-Warri, which is part of the Escravos Lagos Pipeline System (ELPS), the Trans-Forcados crude pipeline and temporary maintenance of the Utorogu gas plant, which led to shutdown. We have suffered repeated outages on the vital Trans Forcados crude oil Pipeline (TFP), the latest being about two weeks ago. Although this is not a gas pipeline, it is used to evacuate condensate from Oben, Sapele, Oredo and Pan Ocean’s Ovade gas field. With a disruption of condensate evacuation, gas production has to stop.

    “The crude theft related outage of crude pipelines is also a challenge a in the East with recurrent breach of the Trans Niger Pipeline (TNP) almost on a weekly basis. The result of this is major disruption of gas supply in the East impacting on three power plants at Afam belonging to NNPC/SPDC JV, PHCN and RVSG as well as other industrial users in the East such as Notore and ALSCON.”

    Besides repairs of the vandalised pipelines, Yakubu said new gas projects would soon be delivered.

    He said: “Beyond the ongoing repair works, many projects are ongoing to bring in additional supply to bridge the growing demand by the power sector. By the end of Q2/Q3 2014, additional 200mmcf/d of gas is expected from two NPDC projects at Utorogu and Oredo. In addition, with the planned completion of the Omoku and Alaoji NIPP power plants, further boost in generation is expected as both plants have gas supply available awaiting completion of the power plants.

    “In 2015, many other projects are expected to mature progressively and by 2016 when the East-West pipeline is completed, a major boost in supply will be attained as over 250mmcf/d of gas stranded in the East will be diverted to meet the growing power demand.

    “If the occurrence of pipeline attacks is arrested, we expect nothing but a continuous and steady upward growth in gas supply to power from the end of this month, with a noticeable increase in electricity seen by Nigerians.”

  • Why power supply is poor, by business manager

    The Ikeja Electricity Distribution Company (IKEDC) provides power to consumers on the basis of energy allocated to it from the national grid, its Business Manager, Akowonjo Business Unit, in Lagos Sani Mohammed has said.

    Speaking to residents of 121 Road, Gowon Estate Egbeda, a Lagos, suburb who complained about power outage in the area, Mohammed said reduction in energy was responsible for poor power supply in Egbeda and other areas.

    He said: “If power supply is available, I cannot use it to entertain anybody or take it to my house. If the transmission does not supply energy, we will not be given bill at the end of the month. If it is possible that all residents are given prepaid meters now, I will be happier because I will sleep well at home. Even if you have a functioning analogue meter and someone is reading the meter and you are given a bill based on what you used, you cannot contest that.

    “Alimosho feeder that you are connected with is overloading now and since you cannot wait until the power situation is over, you can go to our head office at Ikeja to lodge complaint. We do not have the material to connect you back,”

    He said consumers have the right to complain when they are not getting power that is proportionate to the bills they are paying.

    “But when they give yo an estimated bill when power supply is not regular, you have the right to contest it,” he said. He assured the residents that there would be an improvement when the energy allocation to the district improves.

    Also, the leader of the group, Mr Edward Olley urged IKEDC to improve power supply in the area, noting that residents have suffered for it.

  • Ikeja Disco begs for customers’ understanding, patience

    The Managing Director, Korea Electric Power Nigeria Limited, the technical partner to Sahara Group, owners of Egbin Power Station and Ikeja Electricity Distribution Company, Yeom Gyoo Chull, has asked customers to exercise patience over poor power supply. He said plans were underway to ensure sustainable supply.

    Chull said there were infrastructure challenges, noting that they are surmountable. He urged customers to give the investors some time work out things.

    He said: “Our relationship with Nigeria over the year has shown that the nation is filled with resilient and resourceful people who are driven by a spirit of entrepreneurship that ranks among the best in the world.

    “Yes, there are challenges bordering on infrastructure and human capital that will require time to overcome. We will need the patience and support of all Nigerians as we work towards overcoming these challenges with innovation, commitment and determination.

    “We see a future where Nigeria will become an exporter of power. This is possible with our collective resolve. Thereafter, Nigeria will once again be the industrial driver of the region and achieve its Vision 20: 2020 in no time.

    “Together, we can redefine the power sector in Nigeria and thereafter, drive socio-economic growth with a renewed passion for excellence. We are here as partners to work with you to build a future where uninterrupted power supply is obtainable in Nigeria and our great companies play leading roles in the sector across the globe. We believe in this project and we believe in you. So, let there be sustainable light; let there be collective progress.”

    The Managing Director of Egbin Power Station, Mike Uzoigwe, said transformation in attitude to work and new investments are taking place in the company.

    He said: “The difference between the old and new arrangement is that when it was under the government, bottlenecks involved in getting approval s to execute jobs, replace faulty equipment or carry major repairs, are no more there. Everybody sees everything therefore, anything that would slow down performance and work are addressed promptly. The undue long procedure of getting approvals doesn’t exist again.

    “Also attitude to work too is being worked upon having come from a government civil service set up. It was not businesslike but now it is different. We are motivating staff to deliver on their assignment. The Koreans are bringing the open office system where everybody from board to subordinate to assistants sits in the same place, drastically reducing private office system. A lot is changing. We are learning from the Koreans and they are also learning from us.

    “Also part of the privatisation package is that after six months, the new companies decide on whom to keep or not to keep. You cannot build any good structure on a wrong foundation. What we have succeeded in doing in this country is that we have laid good foundation by privatising the power sector. The problem in this sector is that people in government fail to understandthe weight of these problems as of factors.

    The main factor that is inimical to power supply in the country is poor capacity. To generate power involves capacity, to transmit that power involves capacity and to distribute it involves capacity. These are infrastructure problems. The 4500 MW, which is the highest we have reached as a country could not satisfy the 160 million people.

    “There is no way it can go round but successfully we have a good platform now, how to move away from where we used to be is the next thing everybody is battling to do,” he added.

  • Consumers owe Discos over N100billion

    Electricity consumers owe power distribution firms over N100billion,The Nation has learnt.

    “We have 11 power distribution units, and altogether consumers owe N100billion or more, an official of the Ikeja Electricity Distribution Company (IKEDC), who asked not to be identified, said.

    He attributed the bulk of the debts to the army, police, para-military forces, ministries and parastatals, saying they accounted for over 70 per cent of the debts.

    He said unlike in Europe and other developed economies where there is a highly structured system that makes it difficult for one to evade utilities’ bills, it is not so in Nigeria. “Here, the system is porous, thus making it very easy for people to do anything,” he said.

    He said an average Nigerian believes that anything from the government must be free. He said this is evident in the ways they handle issues relating to public utilities. He said the privatisation of the sector has not changed their mindset, because they believe the government still regulates power in Nigeria.

    He said: ‘’Many consumers want the government to provide electricity free. They believe that water, power and others are their rights, and that there is no need to pay for them. They have forgotten that funds are allocated for them annually. For instance, when a power distribution unit gives N5, 000 per month bill to consumers, what you see is people paying between N700 and N1,000. Often times, they spread the balance over a period of time, and in some cases not paying it at all. That is how the bills accumulate.”

    However, investigation has revealed that consumers are no more disposed to paying their estimated bills as the level of power supply has dropped so low that paying any bills is not justifiable.

    Some of the consumers claimed that they are not getting regular power supply, and are burdened by huge bills. Others have attributed the apathy to corruption as evident by backdoor settlement of power firms’ officials and manipulation of meters, and loss of confidence in the power institutions.

    Consumers, who spoke to The Nation, however, said they refused to pay bills because they are not getting value, saying successive governments have made promises to improve power to no avail.

    A lawyer, Mrs. Ponle Olurotimi, said it is foolhardy of consumers to pay for services they are not enjoying, noting that the power situation has worsened in recent times. She said consumers spend a lot of money in providing solar power and generators, as well as other forms of alternative energy.

    She said the development has affected them financially, as well as making it difficult for them to pay their bills.

    “The reasons consumers are not paying their bills regularly are personal and economical. Some believe they are being exploited by power firms, and so refuse to pay their bills.To this group, paying bills amount to exploitation because they are not enjoying electricity. Others are not paying because they have too many financial commitments, or responsibilities.

    “When you look at the scale of preference of consumers, they either go for products or services that give them immediate or lasting satisfaction. In the case of electricity, consumers have lost confidence in the ability of the government or private operators to improve power. They are no longer concerned about infrastructural decay in the sector and the efforts made by power firms to fix them. What they want is improved electricity supply. Anything short of this is unacceptable to hem. This has prevented them from paying their bills,’’ she added.

    A computer engineer,Thomas Ayanleke, said corruption is prevalent in the power sector. He also said consumers connive with power firms’ officials to evade payment, adding that bills can be written off, by bribing officials in charge of a business unit. Technology, he said, is flexible such that it can be manipulated to do anything.

    He said people, who are skilful can manipulate electrical objects to remove and inject data to achieve a set goal.

    ‘’Once it is easier to stop analog meters from reading, who told you it is not possible to adjust prepaid meters? he queried. He said all you need is to get those who provide core engineering services to open the meter, look at the software, remove one or two data and insert new ones. How do you expect consumers whose meters have been maneuvered to pay bills?” he asked.

    He said the system is not well- structured, adding that people can evade taxes, water and electricity bills irrespective of the technology adopted to run them.

    According to him, the firm has partnered with foreign companies to provide security-proof meters and further ensure that consumers pay their bills regularly.

  • CNOOC, Gas Group invest $50m

    Gas Group and China National Offshore Oil Corporation (CNOOC) have invested $50 million (about N8 billion) in downhole tools, logistics trucks, machine shop and rig assembly in Nigeria.

    They plan to invest an additional $150 million (about N24 billion) in the subsector.

    CNOOC is a Chinese firm with over $30 billion investment in exploration and production and other services, while Gas Group is a consortium of Nigerian and American companies.

    CNOOC’s Chief Executive Officer, Gliffeth Wonuigwe, who made this known during a tour of the company’s office in Port Harcourt, with officials of the Nigerian National Petroleum Corporation (NNPC) and International Oil Companies (IOCs), said the deal started with the signing of a strategic integrated agreement with CNOOC in Tiangin, in China in 2012.

    He said the agreement was signed with the Chief Executive Officer of CNOOC Energy Group, who was represented by Mr Nan Shan, adding that the pact covers joint operation of downhole tools stocking, fishing and well completion services and logistics.

    He said: “We have invested over $50 million in the first phase, that informed this facility tour. We took a delivery of $10 million worth of tools and trucks and another shipment of $40 million will arrive Nigerian ports at the end of March. The Second Tier is the investment of $150 million in rig assembly plant at Kidney Island eastern area. The service will be executed by Houston based IDE and Loadcraft,”he said.

    Wonuigwe said the initiative would help in creating over 5,000 employment opportunities in its rig assembly and oil field services, stating that the partnership was discussed in Beijing during President Goodluck Jonathan’s meeting with the Chinese President, Mr. Shin Jin Pin last year to strengthen Nigeria/Chinese bilateral relationship.

    Also, the Group General Manager, National Petroleum Investment Management Services (NAPIMS) Mr Fidel Pepple, said the tour marks the beginning of good things to come in the oil and gas industry. Pepple, who was represented by the Group Executive Director, Mr. Abiye Membere, said there was need to encourage firms assisting in the implementation of Nigerian Content in the oil and gas industry.

    “I am here to participate in the facility opening because Gas group has been adding value to the oil and gas industry in terms of consistent empowering of Nigerians through the technical partners by providing expertise for the transfer of technology to Nigerians,” he said.

    Pepple urged IOCs to support the investment made by the Gas Group in-country by patronising the logistics base of the company at the Kidney Island.

    “For Nigerian companies to grow so that we can develop adequate capacity in-country for all projects, it is necessary for the IOCs to support all Nigerian companies,” he added.

    The Director, Department of Petroleum Resources, George Osahon, said the partnership is a reflection of the confidence reposed in the country by the international business organisations, adding that the development would boost the economy.

    Osahon, who was represented by the Southsouth Zonal Coordinator of DPR, said the alliance would reduce influx of expatriates into the country, and increase direct investments in the country.

    “The development of the logistics base by Gas Group and partners will help Nigeria to attract investment from the oil and gas industries of neighbouring West African countries, ‘’ he added.

  • NUPENG seeks clarification on private depots

    Urgent clarification of the status of private petroleum depots’owners would help in averting crisis in the industry, the General Secretary, Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), Issac Aberabe has said.

    Speaking at the Third Independent Marketers Branch (IMB) Lagos Zonal Council Quadrennial Delegates Conference in Lagos, Aberabe said the status of private depots has become a major concern in the sub-sector, adding that efforts to resolve the issue would encourage growth.

    Represented by the Senior Assistant General Secretary, NUPENG, Adamson Momoh, he said private depots’owners were disqualified from attending the conference because of internal squabbles.

    He urged members to facilitate discussions on how to solve the problems before it is too late.

    He said: ”The Branch Executive Council(BEC) of NUPENG should consult widely and resolve the status of the private depots before it becomes a source of disunity, antagonism, bikering and demotivation in the Branch.’’

    He said audit committee has discovered discrepancies in the collection and remittance of union dues and levies among braches in the informal sector.

    The branch, he said, should dialogue with the leadership of the union to ensure that all outstanding dues and trip levies are remitted by the National Secretariat without further delay.

    He said the guidelines issued for conduct of election of zonal delegates has generated controversy, advising members to resolve the issue through dialogue.

    Also, the Zonal Chairman, IMB, Wahab said dialogue is needed to resolve industrial conflict.

    ‘’Labour agencies must use dialogue to resolve issues. Dialogue when use effectively helps to reduce tension, blackmail, and gossips in work place,’’ he added.

    The Zonal Trustee, IMB, Kofoworola Oladehinde, urged members to resolve problems affecting the union, arguing that failure to settle their differences would hinder growth.

  • Firm chief hails local content reform

    Massage of the Local Content Act has ensured that oil services’firms compete for jobs, hitherto given to foreign-owned companies operating in Nigeria, the General Manager, Fenog Nigeria Limited, (an indigenous oil services company), Chukwudi Uwakwe, has said.

    Uwakwe, an engineer, during a media tour of the company’s project in Kwale, Delta State, said the firm has leveraged on the reforms in the industry to record some achievements.

    He said the firm laid gas pipes across the 1.7 Escravos River in Warri, and ‘24’pipes in 2.82 kilometre/ObOb Kwale River in Delta State, using HDD rigs.

    He said: “The company had its two newly acquired PD 250 HDD rigs to fix a major component of the Escravos/Warri Gas Pipeline Project—Escravos River Crossing—initiated by the Nigerian National Petroleum Corporation(NNPC/Chevron Joint Venture.

    “The HDD equipment laid the pipes across the 1.7-kilometre Escravos River in Warri Southwest Local Government Area, Delta State. This was accomplished in spite of the challenges posed by the new technology and agitations by the host communities.”

    He said a team of Fenog’s engineers and technicians completed the project within three months, making it one of the fastest in the industry.

    “The significance of this project is that it is a trunk line to convey gas from Kwale flow station to ObOb Gas Plant and to Bonny LNG and beyond. So, it is an economic value line that Agip has put in place to ensure that gas is convened from Kwale to ObOb Gas Station to Liquefied Natural Gas. We urged the Federal Government to encourage local companies so that they can be able to come up with standards that would promote the local content,“ he added.

    Also, the firm’s Executive Director, Mathew Tonlagha, recalled how the firm used the Continuous Horizontal Directional Drilling (CHDD) for one of its ongoing crude oil pipeline projects within the Escravos region.

  • Fear grips electricity workers as probation ends in April

    Fear grips electricity workers as probation ends in April

    Electricity workers are under intense pressure to deliver as the six-month probation given them by the 14 power firms expires soon.

    The Bureau of Public Enterprises (BPE), last November, sacked about 70 per cent of the 48,000 workers of the Power Holding Company of Nigeria (PHCN), putting the remaining 30 per cent on probation for six months starting from November 2013 to April, this year.

    The Nation gathered that the generation companies (GENCOs) and distribution company (DISCOs) gave a ‘’tough’’ schedule regime for the workers.

    While some are doing the job of two or more people, others do the work of four to fill the vacuum created by the retrenchment.

    In some of the business units visited in Lagos, workers were making frantic moves to meet set targets.

    A worker of the Ikeja Electricity Distribution Company, said meeting the targets set by the firms has been difficult. He said the shortage of manpower has put workers under serious pressure.

    He said: ‘’The overhauling of the PHCN and the retrenchment of workers last year have caused anxiety in the industry. Those retained by the power firms, live in fear. The reason is because the firms have promised to review the workforce soon. There has been intense lobbying by the staff to regularise their appointments. Besides, a worker does the work of three or four people. I was assigned to distribute bills in four communities, a job hitherto assigned to two or more workers.”

    Also, a female worker at the Ojodu Business Unit, said the workers were living in fear as the probation period lapses soon. She said many workers are uncertain about their future since they may be thrown out of job soon, adding that it is certain that more workers would go, going by the pronouncement of some operators.

    She said staff were working harder to win the confidence of their employers, arguing that the means may not justify the end. According to her, many of the workers do not know the parameters which the companies would use to assess their performance, urging the companies to be fair.

    The President, National Union of Electricity Employees (NUEE), Mansur Musa, said the workers had been subjected to unnecessary pressures since the companies took over the assets of PHCN last year.

    Musa said the workers were made to undertake more responsibilities, adding that they are in dilemma as the expiration of the probation period draws nearer.

    He said: “We are fighting our battles from two fronts. First, we are working to ensure the operators do not sack more people after the probation period. Secondly, we want to ensure that those disengaged from services are recalled. We do not want the sector to collapse, hence the decision to appeal to the government to handle the workers’ issues with caution. To secure quality hands is not easy. That is why the government needs to reconsider its decision on some labour issues.”

    He said the business units and other locations managed by the power distribution companies could not boast of enough funds, stressing that the issue has affected their operations.

    ‘’ We have been trying to tell the government that the money level in the business units and other locations have been depleted. This has worsened the workers’ plight because the power distribution companies were not ready to employ more hands. What we see is mounting pressure in the industry. If the trend continues, there would be industrial accidents. The workers are going to burn out, as a result of stress. When this happens, low productivity would set in and the DISCOs and GENCOs would not be able to achieve their goal of improving power supply.”

    The Spokesman, Ministry of Power, Timothy Oyedeji, said the workers should understand that the government is trying to fix the sector. The government sold the PHCN to investors, provided blueprint for them to operate and cannot interfere in their decision making, he said.

  • How to stop gas flaring, by NLNG

    How to stop gas flaring, by NLNG

    For Nigeria to eliminate gas flaring, the government must put in place adequate security measures for assets and personnel. It must also enforce operational best practices, Senior Business Strategy and Performance Analyst, Nigeria Liquefied and Natural Gas Limited (NLNG), Ezekiel Adesina, said in Lagos.

    He said there was need for new partnerships in gas flaring reduction initiatives and commitment by the government to investment, adding that technology is a vital tool in monetising stranded gas and reducing flaring.

    The country, he said, would require partnership from foreign investors and also employ public-private partnership (PPP) initiative to achieve both technical capability and financial support for zero flaring.

    He said in 2000, gas flaring was 38 per cent in terms of volume while in 2012, it was 11 per cent, which showed that Nigeria has taken off 27 per cent of stranded gas that had been put into utilisation. He said that within the period, a lot of improvement had been made in reducing gas flaring in the country.

    He noted that if the right regulatory framework and fiscal policies were put in place, Nigeria would have zero flaring in the next couple of years. Other factors to be considered, he said, include the issue of viability and commerciality of the gas as well as unbundling the value chain in the sector. This, he said, would give room for many players to come into the sector. It would also help to ensure that the stranded gas are captured and commercialised.