The Nation Newspaper

Category: Energy

  • How to achieve cheaper oil, gas production

    How to achieve cheaper oil, gas production

    FOR most oil producing companies operating marginal fields, oil prospecting is a big issue owing to the cost involved.

    But with a new technology that emphasizes cost reduction in oil prospecting, an expert says the viability and profitability of exploration activities by these companies can now be enhanced.

    The Managing Director, WellManned, Uwem Udoh disclosed this at the September edition of the Nigerian Association of Petroleum Explorationists’ (NAPE) monthly technical meeting in Lagos.

    He said the technology known as Stress Field Detector (SFD) provides a faster, cheaper indication of prospects to help accelerate reserves addition and estimates especially for Nigerian Independents and marginal field operators.

    He hinted that these reserves estimates are needed to provide data for financing decisions to help move a lot of oil blocks to quicker development. This, he said, would have a significant effect on the production level as well as revenue accruable from the oil.

    “We must understand that the major objective of the SFD technology is to reduce the cost of exploration, which is currently very high especially for the marginal field operators. Besides, the technology also helps to reduce the time for development of oil blocks. With a reduced development time, it would be possible to have increased reserves. And with increased reserves, we would automatically have our production level, OPEC quota and revenues from oil also increased,” Udoh said.

    Describing oil and gas prospecting as an activity that has evolved over the years, Udoh said the use of different computer technologies for the exercise has meant that oil prospecting companies are able to gain deeper insight into the wave field phenomena of the earth though with huge cost implications.

    He said: “Over the years, oil and gas prospecting has adopted a geophysical method called exploration seismology for determining geologic structure by means of induced elastic waves.

    By studying body waves such as compression and shear waves propagating through the earth’s interior, the constituent and elastic properties of its solid and liquid core, its solid mantle and the thin crust are thereby defined.

    “But in recent times, available computer technology has allowed the resolution of some of the theoretical complexities of elastic wave propagation so that deeper insight into the wave field can be obtained. Also, the availability of a large number of channels in the recording instrument has facilitated three- dimensional and three- component acquisitions. In fact, there are now powerful super computers to allow for manipulation of larger data sets as well as their display and interpretation into single data unit through the use of advanced computer visualization techniques.”

    He noted that with this requirement, any oil prospecting organization would have to contend with the issue of the huge cost of exploration if it has to bring its field on stream.

    He said that the inability to fund exploration activity by several marginal field operators is the major reason why their productivity and the country’s proven reserves figures have been badly affected.

    On recent report by Reuters that the country may in few years run out of oil, Udoh dismissed such claim noting that the country still has fields that have not been prospected let alone exploited.

    He said: “I don’t think there is any logic in the assertion that our wells may soon run dry. As a matter of fact, there are wells that have not been tapped into at all. We have the Chad and Anambra basins that we have not explored and exploited at all. How can anybody now say we may run out of oil when there are wells yet untapped. I don’t believe so.

  • First Bank finances Broron’s oil vessel

    First Bank finances Broron’s oil vessel

    First Bank of Nigeria Plc has solely financed the multi-million dollar brand new oil and gas vessel, DSV Arianna. This is a milestone considering the poor response of Nigerian banks in funding oil and gas projects in the country.

    DSV Arianna is a brand new 78-metre ROV support and multifunctional field maintenance vessel acquired by Broron Oil and Gas Limited to service its clients such as Mobil Producing Nigeria Unlimited and Addax Petroleum Limited.

    First Bank’s Group Head, Corporate Banking, Ikeja 1, Oluremi Ajose-Adeogun, who spoke to our correspondent during the christening ceremony of the vessel in Lagos, said the bank found the oil company competent. This, he said, was why First Bank chose to fund the acquisition of the vessel. Although she didn’t reveal the amount the bank spent in financing the vessel, she said they (First Bank) didn’t syndicate the loan with any other bank.

    She said: “There are a lot of potentials in the industry for Nigerians that own vessels in the oil and gas industry and we think if the banks are willing to support Nigerians that have the capacity in terms of knowledge of the industry and the wherewithal to execute contract of this nature, we can do a lot to stimulate the economy.

    “In the past most of the foreign companies are the ones that have vessels of this nature and as a result we had a bit of capital flight in the sense that money that should be spent in the economy was taken out by the foreign companies that own the vessels.

    “But now a lot of Nigerians have seen the potentials and are going into it and is good if the banks can support the Nigerian companies that are willing to do the business.”

    On what attracted the bank to fund the project despite the company being a relatively unpopular in the oil and gas industry, she said “what attracted us to finance the project is because the company has an existing contract it was running with a foreign leased vessel, so when the company approached us to fund the purchase of its own vessel, and we could see our way out of the finance, we decided to support them.”

    Commenting on the level of support by Nigerian banks to the oil and gas industry, she said that Nigerian banks are financing a lot of oil and gas projects. Apart from First Bank, which is doing a lot in that regard, other banks she added are doing something too. “if Nigerian banks cannot finance Nigerian companies, who will?,” she quipped.

    She said: “First Bank didn’t syndicate the loan with another bank. There are a lot of other such requests for financing but the bank evaluates them based on its risk acceptance criteria. For instance, in a project such as this vessel, we consider the company’s experience to be able to deploy the vessel. We also consider your experience in the industry job, the contract and consider if you have the capacity to execute the contract and also ask ourselves if we can see our way out of the loan if we lend you the money. When we have transactions that are viable, we are always willing to finance them, she added.

    Broron Oil and Gas Limited provides marine, subsea construction and maintenance services, pipeline and piping engineering, project management services and procurement support services. The company led by Henry Ojogho.

    The company currently has an ongoing contract agreement with Mobil Producing Nigeria Unlimited to provide a multifunctional Field Maintenance Vessel (FMV) at QIT (Qua Iboe Terminal) with DPII capabilities for the following field operations: diving, survey operations for positioning and subsea inspection and seabed imaging with ROV

  • DPR warns marketers on illegal construction of filling stations

    DPR warns marketers on illegal construction of filling stations

    The Department of Petroleum Resources (DPR) has warned oil marketers on the construction of filling stations without its approval.

    The DPR Director, Osten Olurunsola gave this warning at the 2012 major and independent marketers meeting held in Lagos. He decried the rising issue of marketers building new filling stations without seeking the statutory approval from the regulator.

    Olorunsola, who spoke through Mr Lanre Buraimoh, DPR’s Assistant Director, Product Depot and Jetty, said: “The past year witnessed an upsurge in the number of marketers who began construction of filling stations with an ‘Approval to Construct,’ and then later applied for a waiver from the Department. This is an outright violation of the laws governing the construction of filling stations, and an appropriate penalty will soon be in place for this.”

    He told the marketers that the construction of filling stations and fabrication of underground tanks should be undertaken only by DPR accredited consultant. Likewise all oil and gas equipment suppliers must be accredited by DPR, he added.

    He drew the attention of the marketers to strict compliance with oil and gas industry standards as practised worldwide.

    On ensuring further application of global standards in local operations, Olorunsola said the Department is in advanced stages for the implementation of the Trucking Policy, which is envisaged to enhance tanker trucks usage and institute orderliness in trucking activities at the depots. The policy will also minimise pipeline vandalism, check diversion, theft and adulteration of petroleum products, and enhance road users’ safety, amongst others.

    On the current fuel scarcity, the DPR chief said that fuel distribution has remained stable until recently when reduction in supply has been noticed probably as a result of outstanding subsidy payments to the marketers and vandalism of distribution facilities as witnessed recently at Arepo. He said that the government is making concerted effort to ensure the availability of petroleum products.

    He also appealed to the marketers to step up product supply, especially as the festive periods approach. “We are approaching the end of year with the expected usual surge in social and festive activities. The attendant elevated quest for consumption of petroleum products cannot be over-emphasised. We wish to encourage marketers to ensure product availability to the public at this critical period. Marketers are strongly advised not to engage in acts that may lead to creation of products scarcity, and other associated ills such as hoarding and product diversion for profiteering, he said.

    DPR Operations Controller Mr Gbenga Koku corroborated Olorunsola, urging the marketers to conduct their operations within the provisions of petroleum laws and regulations, adding that a lot of challenges still lie ahead towards transforming and repositioning the downstream sector for sustainable economic development.

    He said: “We will continue to monitor licensed outlets, and hand over the illegal operators to the police. We will not licence retail outlets constructed without recourse to petroleum regulations.”

  • Marketers to support NNPC in fixing Arepo pipeline

    The Western Zone of the Independent Petroleum Marketers Association of Nigeria (IPMAN) would assist the Nigerian National Petroleum Corporation (NNPC) to fix the vandalised major pipeline, System 2B, at Arepo in Ogun State, to ease distribution of petroleum products across the country.

    The South-West Zonal Chairman, IPMAN, Mr Olumide Ogunmade said this in a joint communiqué issued by the group after their meeting in Lagos. He condemned the attack of officials of Products and Pipeline Management Company (PPMC), a subsidiary of NNPC, in the course of their official duty. The group noted that such sabotage on socio-economic infrastructure of the country should be stopped.

    Ogunmade said the association would support the NNPC in whatever action it takes to restore pumping of products into the System 2B pipeline in the shortest possible period.

    He said that the current products rationalisation within the southwest depots was as a result of the vandalised pipeline at Arepo, which has caused the entire nation a setback in the petroleum distribution sector.

    “We commiserate with the management of NNPC/PPMC on their staff that were attacked at Arepo in the course of repairing the vandalised pipeline. We promise to support the management of NNPC/PPMC in whatever action they will take in restoring the System 2B pipeline in the shortest possible period.

    “We also want to appeal to the Federal Government not to surrender to vandals by ensuring the quick repair of the System 2B pipeline. The effect of leaving the pipeline unrepaired is scarcity of products all across the country,” he said.

    The group also appealed to the government to put in place measures that would holistically address the issue of pipeline vandalism. “Strong mechanism should be put in place to checkmate activities of vandals not just on NNPC pipeline network but all oil and gas infrastructure. We also urge the National Assembly to put in place laws that will ensure that vandal are punished,” they added.

    Ogunmade said: “We also plead with host communities of NNPC right of ways such as Magboro, Magbon, Arepo, Ogere, Ijedodo, Isawo, Ogolonto in Ikorodu and others, to cooperate with the PPMC management in ensuring the pipelines are protected. Communities where the pipelines passed should be very security-conscious to drive the local economy.”

    He added that the level of pipeline vandalism in the country is getting worrisome and needs divine intervention.

    The NNPC said oil thieves opened fire on a team of engineers and technicians of the PPMC that came to repair the pipeline and killed three.

  • Expert tasks House on passage of PIB

    The Petroleum Industry Bill (PIB) if not passed into law soon, would translate into Nigeria wasting eight years of investment in the oil and gas industry.

    The Chairman and Chief Executive Officer, International Energy Services Limited, Diran Fawibe who said this, called on the lawmakers to put in place strong measures to fast-track the passage of the bill.

    He called on President Goodluck Jonathan and the Minister of Petroleum Resources to engage the leadership of the National Assembly into meaningful discussions to ensure quick passage of the bill

    While commending energy reporters on their efforts in bringing to the lime light the industry activities, he challenged reporters to do detailed analysis of the benefits derivable from the passage of the bill to the Nigerian oil and gas industry and to the nation’s economy.

    Expressing dissatisfaction over what he described as legislative protocols, Fawibe urged the National Assembly to pass the bill devoid of personal or political interest, saying overriding interest of the country should be paramount.

    He observed that a lot of investments had found their way out of Nigeria to other African continents including Angola as a result of non-passage of the bill.

    “A lot of investments that are meant for Nigeria go to other countries and Nigeria is no more in the position it was in the 1970’s when it was the only major producer in Africa. Now Angola appears to have overtaken Nigeria not in terms of labour of production but in terms of inflow of investment,” he said, adding that there are yet other countries in Africa that are discovering oil.

    He, however, expressed the hope that Nigeria would reclaim the loss as soon as the bill is passed into law. “Of course some stakeholders would be benefiting from the status quo, they gain while the country loses. If we don’t use our oil revenue judiciously to sustain our economy, get to the next level and make the vision 2020 aspiration credible, we need to aggressively look for foreign investment,” he added.

  • Firm to build 107,000 bpd refinery in Bayelsa

    Firm to build 107,000 bpd refinery in Bayelsa

    An indigenous company, EPIC Refinery and Petrochemical Industries Limited, said it had concluded arrangement to build a 107,000 barrel per day refinery in Bayelsa State, which is expected to be completed in 2014.

    The Managing Director and Chief Executive Officer of the company, Hon. Barango Matthew Wenka Jnr. stated this during a presentation on planned refinery to the Department of Petroleum Resources (DPR) in Lagos.

    “EPIC Refinery and Petrochemical Industry Limited will be commissioned in 2014 by President Goodluck Jonathan if the DPR will issue us the operational license without delay,” Wenka stated after the presentation.

    The refinery, which will be sited in Oporoma Community in Bayelsa State, Wenka said, is purely a private business concern that has everything ready to make the project succeed despite failures of several firms that had been issued licenses to construct in the past.

    The Coordinator of EPIC refinery, Mr. Zakari Umar, an engineer, who also led the EPIC technical team, took the DPR team led by Olumide Adeleke, the Assistant Director, Pipelines, Plants and Installation and Joseph Odiong, Manager, Hydrocarbon Processing Plant, through the plant drawings, process description and flow schematics of the refinery.

    Presenting the technical details of the refinery and petrochemical plant, Umar said the construction of the refinery would be done in close collaboration with the DPR. Umar explained the design philosophy, technology, design development and components of the refinery complex as well as the construction, stock input and output (the yield), export options and modalities, power generation and social infrastructure of the refinery.

    Umar stated that what informed the choice of Oporoma as the site for the refinery is nearness to source of crude oil. He said the refinery complex, will be configured to process 107,000 barrels of crude oil per day (Bonny Light or low sulphur blends). He listed the process units of the refinery to include crude distillation, naphtha reformers, vacuum distillation and gasoil hydro-cracking units. Others include hydro-treating units for kerosene and diesel, residual fluid catalytic cracking and merox unit.

    He explained that out of the 107,000 barrels of crude feed per day, 4,287 barrels of fuel gas and 25,320 barrels of gasoline (petrol) will be produced. For kerosene, diesel and fuel oil, he said, 10,332 barrels, 38,714 barrels and 25,897 barrels of the products will be produced on daily basis.

    On the proposed market for the products, Umar said Nigeria and other West African countries as well as the United States and Europe would be the primary markets. He also told the DPR that the company would also build a power plant that would generate over 200 megawatts (MW) of electricity to power the refinery, adding that the excess of what would be required by the refinery would be wheeled into the national grid at a reasonable price.

    Adeleke promised the EPIC team of DPR’s support but stated that in time past, other promoters had come for presentations after which nothing happened. Reacting to the statement, the EPIC chief reassured DPR that the funds for the project is not a problem as HSBC had already pooled together about $30 billion required for it. All the bank is waiting for is the approval from DPR for it to start. He said the refinery, when completed would represent a monumental legacy in the transformation agenda of the administration of President Jonathan.

    Stressing the need for the construction of the refinery, Wenka said the downstream subsector of Nigeria’s oil and gas industry is under-invested. The sector he said, lacks adequate productive capacity, which accounts for the reason refined products are largely imported. The opportunities of profit and technology transfer are being lost to other developing countries, making petroleum products to be perennially in short supply with demand always high.

    In view of these, refining of crude oil is attractive to local and foreign investors and above all, government needs to extricate itself from the stronghold of products importation and subsidy scandal.

    He said EPIC is ready to commence work if the DPR issues it the license, adding that the company’s technical partner, the Sino Asian Energy (SAE) Group Limited has cutting edge technology and vast experience in the construction of refineries worldwide. The EPIC boss cited other projects undertaken by SAE Group to include the ultra-modern 348,000 barrel per day capacity refinery recently completed in Indonesia.

    He said that EPIC and SAE Group are in a joint venture. The SAE Group is to Build, Operate and Transfer (BOT) the refinery to EPIC by 2016. According to the BOT schedule, the construction is to take 24 months while the operate period is to last for 48 months. The pre-start activities of site acquisition, surveys, assessment, compensation, clearing, fencing and similar issues had been sorted out already, he added.

    He also told the DPR that a memorandum of understanding (MoU) has been signed with the Federal Ministry of Trade and Investment, which has promised to fast-track the processes and incentives. The project will cost about $30 billion and would be fully funded by foreign financiers. He noted that there is a proof of funds made available by HSBC.

  • Banks commit $1b on vessel financing, says Nwapa

    Banks commit $1b on vessel financing, says Nwapa

    The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Ernest Nwapa has said that within the short period the board came on stream, Nigerian banks have committed over $1 billion into financing of oil and gas vessels.

    Nwapa criticised the rush of Nigerians into acquiring vessels indiscriminately or expanding their existing fleet without measuring the demand and specifications applicable in the industry. He noted that the positive side of the board’s decision to ensure that Nigerian vessels get jobs before foreign vessels, is that Nigerian banks have developed interest to fund such vessels.

    Nwapa spoke in Lagos at the christening of the DSV Arianna, a brand new vessel acquired by Broron Oil and Gas Limited through the General Manager, Capacity Building, NCDMB, Mr Omorode Oviasu, an engineer.

    He said there has been an unprecedented interest from Nigerian banks seeking to understand the opportunities and participate in marine vessel financing. Already, there is evidence that Nigerian banks have participated in funding over $1 billion assets in this short period.

    Nwapa, in his paper delivered at the event, said that the board is on course in achieving the target set for it in terms of retaining value in-country and creating jobs, among others.

    He said the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke had at the inauguration of the Governing Council of the Board by President Goodluck Jonathan on September 3, 2010, challenged the Board to within four years ensure retention of over $10 billion out of an average annual oil and gas industry expenditure of $20 billion in the Nigerian economy compared to the current sum of less than $4 billion.

    The board, he also said, was tasked to create of over 30,000 direct employment and training opportunities; consider the scale of activities to be domiciled in Nigeria; and establishment of three to four new pipe mills to service the demands of the industry and other ancillary manufacturing plants for coatings, valves, fittings and components.

    Others include development of one or two dockyards and increased utilisation of existing shipyards for maintaining marine vessels operating in Nigeria, which currently sail out for their maintenance and dry docking; transformation of ownership profile of marine assets supporting industry activity from a current ratio of 20 Nigerian-owned versus 280 foreign-owned vessels to a more equitable ratio of 180:120; integration of indigenes and businesses residing in the oil producing areas into the mainstream of industry economic activity; and capture of over 50 to 70 per cent of banking services, insurance risk placements, and legal services supporting industry activities and transactions.

    Nwapa noted that the structured implementation of the Act and strategic initiatives put in place by the Board around the minister’s medium term target is ensuring a total shift from the faulty perspective held by some persons in the industry regarding the capacity of Nigerians to acquire and manage costly and high tech equipment.

    He said: “The Board’s strategy on marine vessel utilisation is anchored around four pillars – vessel ownership by Nigerians, Nigerian manning of vessels, utilisation of Nigerian owned vessels by operators, expanding vessel maintenance capabilities and a programme to fit out topsides of larger marine vessels in Nigerian yards. These will lead up to the ultimate goal of full blown shipbuilding in the longer term.

    “Significant progress has been made such that today, 85 per cent of category 1 vessels in the records such as crew boats servicing major operating companies on regular contracts are owned by Nigerians. Similarly, the number of indigenously owned PSVs, AHTS and other Category 2 vessels working on regular contracts with operators is steadily on the rise.

    “Within the past one year, over 10 Category 2 marine vessels have been acquired by indigenous interests while feedback indicates that more than 20 more vessels are in various stages of procurement.

    “Working with the operators, we have been able to extract written commitments and identified a total of 49 category 2 vessels slots that will be given to indigenous vessel owners before the end of 2012. This exercise is ongoing and will ensure that a minimum of $3 billion is retained in the Nigerian economy.”

    He however, said this programme of the Board has thrown up fresh challenges, one of which is that many Nigerians have now rushed into acquiring vessels indiscriminately or growing existing fleet without measuring the demand and specifications applicable in the industry. Indigenous companies wishing to benefit from the opportunities must exercise diligence to ensure that vessels being procured meet the requirements.

    But on the positive side, Nwapa said that “there has been an unprecedented interest from Nigerian banks seeking to understand the opportunities and participate in marine vessel financing. Already, there is evidence that Nigerian banks have participated in funding over $1 billion assets in this short period.

    “It is therefore, imperative that assets procured by Nigerians in this way must be put to work so as to guarantee the viability of the investments. Anything less than this will not only kill the Nigerian companies, which are exposed to the loans but also threaten the local banks that funded the assets,” he added.

    He assured that the Federal Government through the Nigerian Content Development and Monitoring Board will not permit a situation Nigerians that invest in marine vessels that meet set technical requirements stay without work while foreign owned vessels are engaged by the industry.

    “At the practical level, we must address the following issues if we are to make sustainable gains from this initiative: How do we ensure that the vessels are genuinely owned by Nigerians? How do we ensure that these vessels optimise employment for Nigerians and keep money earned in the Nigerian economy? How do we ensure that these vessels will continuously be maintained in Nigeria? How do we address the issue of temporary import permit so that it does not stifle vessel acquisition drive by Nigerians? Are the vessels insured by Nigerians?

    “In order to address these posers, the Board has requested all the indigenous vessel owners to upload their details onto the Nigerian Content Joint Qualification System. Having done this, we are now in the process of verifying the authenticity of these claims before further categorizing marine vessel owners in line with marine vessel strategy,” he added.

  • Local content: firm manufactures subsea equipment

    The local content policy got a boost with the unveiling of the first made in Nigeria Subsea Christmas Tree at the Onne Oil and Gas Free Zone. The equipment was manufactured by Cameron Offshore Systems Nigeria.

    The event marked a major achievement in the drive for Nigerian content implementation as the Christmas Tree was designed in Nigeria; the frames fabricated at Globestar yard in Warri while critical value add activities such as radiography, painting, production of anodes were also procured within Nigeria.

    The Subsea Christmas Tree, which was manufactured for Total Usan’s subsea development project offshore Nigeria was assembled and tested at Cameron Base Onne.

    Speaking at the event, the Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Ernest Nwapa, described the Christmas Tree as belonging to the top of technology ecosystem, adding that the accomplishment was a statement for the maturing of the Nigerian supply chain.

    He said the implementation of the Nigerian Content Act had started to achieve Federal Government’s aspiration of transforming the oil and gas sector from an importer of over 95 per cent of the industry needs a few years ago to one that manufactures inputs used in the industry and other sectors of the national economy.

    Nwapa also noted that the industry, which used to create millions of jobs in foreign economies had begun to generate jobs for Nigerians through the development of facilities in-country where work are being executed while indigenes of host communities were becoming active participants in the activities of the industry, thereby creating growth in knowledge, wealth and general wellbeing.

    He praised Intels Nigeria Limited-the management of the Onne Oil and Gas Free Zone for the support it lent to the assembling of the Subsea Christmas Tree, noting that huge investments in infrastructure and facilities are being made in the zone to support the growth of work load the industry must place in Nigeria under the Nigerian Content Act.

    He expressed hope that new jobs would justify the investments and provide the impetus to replicate similar facilities in other parts of the country. He also said that the Equipment Components Manufacturing Initiative, which the Board started to implement recently, was receiving positive support from the industry.

    He said: “In the next 3-5 years, Nigeria will have over 25 globally recognised original equipment manufacturers making their equipment or major components here, either directly or using their Nigerian representatives.

    “From this segment alone, it is estimated that over 10,000 direct and indirect jobs can be created with a new industrial complex emerging from the exercise. Over 30 per cent of total procurement costs for manufactured equipment and spares will be spent in Nigeria.”

    Nwapa explained that the Board’s implementation efforts would be targeted towards ensuring the training of Nigerians to the highest international standards, supporting companies that set up facilities in Nigeria, working with the Nigerian Content Support Fund to drive down fund costs to local entrepreneurs and feeding work into the local industry being created.

    In his remarks, Nigerian Content Director, Cameron, Mr Sunny Nwankwo listed some of the key achievements recorded on the Tree build programme. He said: “Seven subsea injection Trees have been completed-one installed and six in storage. Four Trees are work in progress and at various completion stages. Four Nigerian welders have completed training and certification to ASME-IX international level.

    “In 2004 when we established Cameron Onne base, we occupied a mere industrial space of 10,000sqm, today it is 40,000sqm. Our staff strength was only about 50 Nigerians, today we are over 200 Nigerians with over $30 million investment in personnel development and infrastructure and tooling. We were in the past importing Christmas Trees, today we are building Subsea Trees.”

  • Schneider, ECN, UNDP to implement energy project

    As part of measures by the United Nations Development Programme (UNDP) and Global Environment Facility (GEF) to promote energy efficiency in Nigeria, Schneider Electric has been selected to implement a renewable energy project at the Energy Commission of Nigeria (ECN’s) Headquarters building in Abuja.

    The project which is aimed at showcasing the Energy Commission of Nigeria’s building as a model for public lighting using renewable energy, would include the replacement of all non compliant lighting fixtures in the building with Schneider Electric’s energy efficient LED lamps ‘In-Diya.’

    It will also include the installation of Schneider Electric’s off grid energy solution ‘Villasol’ as well as an upgrade of the building’s electrical distribution network to include metering so that the energy consumption of the building can be measured henceforth.

    Speaking at the event in Abuja, the Country President of Schneider Electric, Mr. Marcel Hochet described the project as a landmark development in the sensitization of the general public on the feasibility and benefits of energy efficient lamps.

    He said, as the global specialist in energy management, Schneider Electric is committed to bringing to the project, its enormous wealth of experience and knowhow to ensure timely completion and delivery.

    He therefore, stated that Schneider Electric is strongly committed to helping people make the most of their energy.This involves making the energy safe, reliable, efficient, productive and most of all, green. “Our fully functional renewable energy project in Asore, Ogun state is a testimony to Schneider Electric’s involvement in renewables industry in Nigeria.”

    Also speaking at the event, the national coordinator of the UNDP-GEF programme, Mr Etiosa Uyigue disclosed that the project’s target was to reduce the buildings’ consumption by up to 50 percent thereby creating an energy efficiency best practice for others to follow.

    The Director-General of the Energy commission of Nigeria, Prof. Sambo who gave a presentation during the event, highlighted that the key barriers to successful energy efficiency practice in Nigeria include a lack of relevant policy, cost versus market ratios, a lack of information as well as wrong human behaviour. He further reiterated that projects that help save energy, eventually save the environment as well as the economy.

    In May 2011, UNDP-Global Environment Facility (GEF) in Nigeria launched an energy efficiency project to promote appliances in the residential and public sector, which had earlier been boosted by a $3 million grant in 2009.

    The four-year’s project is being implemented by the UNDP, while the Federal Ministry of Environment and Energy Commission of Nigeria are among the executing partners of the project that is being funded by GEF. Similar projects have recorded success stories in countries like Ghana, Cuba and Bangladesh.

  • Power generation to exceed 7,000MW by December

    Data from the Power Holding Company of Nigeria (PHCN) facilities and the National Integrated Power Project (NIPP), show that the Federal Government will exceed power generation capacity of 7,000 megawatts (MW) by end of the year.

    The Managing Director of Niger Delta Power Holding Company (NDPHC), which superintends the NIPP, Mr James Olotu, said the NIPP plant would supply at least 2500MW by year end. Generation from the PHCN facilities stood at 4477MW as at last month.

    While the government is making effort to rehabilitate dysfunctional units Egbin and other power plants, the NDPHC is also working to bring on stream new units from its power plants.

    Given this scenario, generation is expected to well exceed the current targeted combined generation of 6977MW.

    Olotu, who spoke at the inauguration of a newly built 150MVA transmission facility at the Ikeja West Transmission Station in Lagos, said four of the 10 plants supervised by NDPHC, are currently operational and generate 1150MW into the national grid. The four plants are Olorunsogo in Ogun State, Omotosho in Ondo State, Sapele in Delta State and Alaoji in Abia State.

    He assured that the improvement in power supply would be sustainable, adding that the NIPP henceforth would be inaugurating a new power facility either from generation or transmission or distribution every month.

    But categorically noted that each month new facilities would be commissioned to improve supply.

    Speaking during the inauguration of the 150MVA transmission facility at the Ikeja West Transmission Station, which brought the total capacity of the station to 750MVA, the General Manager, Transmission Company of Nigeria, Lagos Region, Oyeleke Adeoye, said the same 150MVA facility is being replicated at Akangba Transmission Station in Lagos.

    He said: “Ikeja West is a major station in Lagos. We have another one in Akangba and as you can see the leap achieved with this new facility, this additional capacity will affect the whole of Lagos State and part of Ogun State, up to Abeokuta. We have increased capacity now, before we had 4x150MVA, which translates to 600MVA and we now have additional 150MVA. So we have 750MVA here. With this, we will have increased power supply, which we are already experiencing in Lagos. If you live around Lagos, you could have noticed that.

    “In terms of maintenance, just like in the older transformers, we have maintenance programme for all of them. For us in Transmission we have always had equipment maintenance programme and that is why we have been able to keep the older transformers for over 40 years. We are having another intervention of 150MVA at Akangba.”

    Olotu also added that by next month, the NDPHC will commission more projects like this in Ibadan and Benin and will continue to commission new projects till end of the year. Every month, we will commission a new project in one part of the country to improve power supply that is our promise to Nigerians. However, he noted that the issue of gas supply has become a problematic one but is being addressed at the highest level.

    “The President, the Vice President, Ministers of Petroleum Resources and Power and all stakeholders sit on daily basis over this issue. All efforts are being put in place through this integrated mechanism to ensure that some emergency gas is delivered between now and December.

    “The Nigerian Gas Company has said that between 300 million standard cubic feet (mscf) and 500 mscf would be made available under this emergency period and would be dedicated to NIPP power plants. If we get that, we will get more power into the grid. This intervention is aimed at enhancing the efficiency of power delivery,” he added.

    He said that Alaoji is a 1074mw plant when completed and two units out of the six are ready now and will and be wheeled into the grid subject to availability of gas. He added that actions are being taken by the government to rehabilitate dysfunctional power stations to make them effective. “We have had shortage of capacity at the generation, transmission and distribution ends and the population of Nigeria is increasing, which calls for more supply,” he said.