The Nation Newspaper

Tag: Gas

  • NLNG’s vessel with 13,000mt of cooking gas berths in Lagos

    NLNG’s vessel with 13,000mt of cooking gas berths in Lagos

    Avessel chartered by the Nigeria Liquefied Natural Gas Limited (NLNG) and laden with 13,126.6 metric tons of cooking gas or liquefied petroleum gas (LPG) will today berth in Lagos for discharge in continuation of the firm’s efforts to ease scarcity and reduce the price of the commodity that is currently between N5,000 and N6,000 for a 12.5kg cylinder depending on the area of purchase.

    The General Manager, External Relations, Kudo Eresia-Eke said the vessel – Gaz Providence, as at yesterday was at Lagos offshore, alongside the NOJ jetty waiting for berth to clear before proceeding to discharge and will certainly berth today.

    Gaz Providence had discharged the same volume of LPG in the second week of this month. According to him, 13,000 metric tons of LPG can fill 1,040 12.5kg cylinders.

  • Imported 10kg gas cylinders harmful, says SON

    Imported 10kg gas cylinders harmful, says SON

    The Standards Organisation of Nigeria (SON) has described as dangerous the imported 10 kilogrammes (kg) gas cylinders. It said the cylinders were carrying values meant for 3kg and 6kg cylinders.

    The agency made this known during the inspection of two 40-foot container loads of substandard gas cylinders worth about N50 million.

    SON Director-General, Osita Aboloma, who was represented by the Director of Compliance, Mr. Bede Obayi, said using a 6kg approval to bring in 10kg cylinders  subverted the regulatory standards and constituted economic sabotage.

    “The importer got approval to bring in 6kg, but went and imported 10kg camping gas, a different size, which is not in line with the standard. It is a typical negligence of the laws of the land,” Aboloma said.

    He urged the public not to patronise the 10kg cylinders because they are dangerous. SON, he said, has alerted its state offices to rid the market of the consignment.

    Aboloma said the only the 3kg and 6kg cylinders were approved for importation as camping gas, explaining that some unscrupulous importers were hiding under that to bring in 10 kg cylinders as camping gas.

    “The importation of 10kg cylinders as camping  gas is automatically out of the specification” Aboloma said.

    SON, he said, would prosecute importers of  the substandard gas cylinders and associated products.

    Importers would be made to follow regulatory guidelines as a way to avert danger, he said.

  • Power sector loses N534b to gas shortage, others

    Power sector loses N534b to gas shortage, others

    The power sector lost more than N534billion of revenue in 2016, the Nigerian Electricity Supply Industry (NESI) has revealed.

    Of this figure, the industry lost N1.525 billion on December 24, last year alone.

    According to NESI, the N534billion amounts to the value of electricity lost on account of the challenges, part of which could have been used to bridge the liquidity gap in the power sector, estimated at N1trillion.

    It said the loss was triggered by shortages in gas supply, frequency and line limitations, and water levels management constraints that led to several cases of electricity outage in the country.

    Putting the average daily revenue loss at N1.5billion, NESI identified gas constraint as one of the major challenges confronting the electricity sector.

    Also, NESI’s operational report for January 3 showed that the power sector hit a peak generation of 4,959 megawatts (Mw) as against 3,321Mw recorded on December 2 last year.

    NESI, a subsidiary of the TCN, said that the sector recorded highest system frequency of 51.52Hz and lowest system frequency of 48.85 Hz.

    It also said the highest voltage recorded was 372KV, while lowest voltage recorded on the same day was 300KV.

    Already, the key players in the sector are finding it difficult to access more loans from Nigerian banks due to their inability to meet the payment obligations for previous debts.

    The situation will also affect the capacity of the power firms to improve on electricity supply to consumers for domestic and industrial uses.

    NESI further disclosed that about 12 power stations could not produce electricity during off-peak period under the review.

    Statistics from the National Control Centre, Osogbo, showed that Afam IV-V, Geregu Gas, Alaoji National Integrated Power Project (NIPP) and Olorunsogo Gas plants could not produce a single megawatt (Mw) on December 25, 2016

    Others that generated zero Mw on the day include Odukpani NIPP, Okpai, Ibom Power, ASCO, AES, Omoku, Rivers NIPP and Gbarain power plants.

    Nigeria has total installed power output of 11,165Mw, of which the 12 plants have a combined capacity of 2,035Mw.

    Earlier, the Transmission Company of Nigeria (TCN) had said about 3,959 Mw of electricity was generated to the 11 distribution companies (DisCos) as the country’s power supply gradually stabilised.

    Power generation data is obtained from daily forecast on the Nigerian Electricity System Operator (SO) website.

    The daily power statistics posted by SO, a section of the TCN, showed that power generation gradually improved during the festive season with a peak generation of 3,959 Mw from the national grid.

    The website showed that the country’s lowest power generation during the period was 3,366 Mw.

  • ‘Be involved in oil and gas sector’

    The Nigerian Content Development and Monitoring Board (NCDMB), has advised Nigerian youths, especially those from the oil-producing communities, to be involved actively in the oil and gas industry.

    The NCDMB General Manager, Zonal Coordination and Board’s Projects, Dr. Ginah O. Ginah gave the advice at the youth sensitisation and enlightenment workshop held in Akure and Owo local government areas for the youth in the central and northern senatorial districts of Ondo State.

    The participants were taught on the fundamentals mandates of the NCDMB and its activities, relevant skills in the oil and gas industry and how to acquire them.

    He added that they are to promote the development and utilisation of in-country capabilities for industrialisation of Nigeria through effective implementation of the Nigerian content act.

    He noted that the board is working on how to ensure more Nigerians, particularly youths from the Niger Delta region engage in relevant skills that will make them become employable in the industry.

    Ginah said the development would also promote peace in the Niger Delta by reducing the rate at which the youth in the oil-producing areas engage in crime.

    He also explained that the board was examining a situation in which there is reduction in the rate where companies prefer foreigners to our local experts when jobs are available.

    A consultant to the NCDMB, Hon. Oyebo Aladetan said they have been able to find one of the laws of the country to acquaint the people about environmental values and how they could benefit from their environment.

    Aladetan, who was a former lawmaker presenting Ilaje State Constituency I also said the NCDMB act would help in reducing the rate of neglect of the Niger Delta people.

  • ‘How to make gas more profitable’

    The Federal Government can make gas investment more profitable by providing enabling environment for operators,  Nigeria Gas Association (NGA) President, Mr Thomas Dada, has said.

    In an interview with The Nation, he listed other factors to include the provision of credit facility to operators by banks, and ensuring that local and foreign investors participated in the sector.

    Dada said the sector would be made more profitable for investors  when the right  policies are in place and operators are able to access funds for growth.

    He said when banks provide funds, there would be increase in investments.

    He praised the decision of the Federal Government to develop a new gas policy, adding that the initiative would help in galvanising the potential in the sector.

    He urged stakeholders, including the Federal Government, the Nigerian National Petroleum Corporation (NNPC) and other regulators, as well as  investors to work together to make the sector viable.

    He  said the sector has its own problems that need to be addressed urgently to achieve the desired results.

    Dada, also the Managing Director, Frontier Oil Limited, said there must be a willing buyer and a willing seller of gas, arguing that the idea would lead to competition among operators.

    The idea, Dada said, would help in unlocking the potential in the sector for growth.

    On power, Dada said operators in the electricity industry depend on one another for growth.

    “Consumers of electricity must pay their bills to their power distribution companies(DisCos) and DisCos in return would pay the power generation companies (GenCos) for the power they supplied the DisCos.

    ‘’Also, the GenCos pay the gas marketing companies for gas they supply them to generate electricity.  The sector operates like a chain; one aspect depending on the other for growth,” he said.

    He said the Nigerian Gas Association is into advocacy, adding that the body has senstised  the government and other stakeholders on how to develop the sector.

    The NGA chief urged the government to maximise the potential in the petroleum industry.

    He said the government could achieve this goal, when the country’s exports ensure refined petroleum products, instead of crude oil and also exports Liquefied Petroleum Gas (LPG) instead of natural gas it is exporting to countries in Asia and Middle East to earn revenue for the government.

  • Activist urges Fed Govt to end gas flaring

    An activist, Jonah Gbemre, has urged the Federal Government to enforce a 2005 Federal High Court judgment, which ordered oil and gas companies to end gas flaring.

    Gbemre, who is the Convener of the Host Communities Network of Nigeria (HOCON), spoke at the weekend at a workshop on the impact of gas flare/Environmental Impact Assessment (EIA) and energy transition in Iwhrekan community, Ughelli South Local Government Area of Delta State.

    The event was attended by representatives of the Federal Ministry of Environment as well as environmental activists.

    The activist noted that the continued flaring of gas would endanger the lives of the residents and the environment.

    He regretted that government’s alleged disregard for the safety of the residents in oil and gas exploration areas had been taking place in the last 10 years the judgment was given.

    Gbemre said: “Oil corporations, such as Shell and NPDC, should stop further pollution and gas flaring in Nigeria and at the flare sites in Niger Delta. Government should enforce the court orders of November 14, 2005, delivered by Justice Nwokorie on the need to stop gas flaring in Nigeria without delay.

    “The learned judge held that gas flaring is illegal and it constitutes serious environmental health hazards as well as gross violation of the people’s fundamental human rights as enshrined in the Africa Charter. So, it should be stopped.

    “Gas flare by oil companies in Niger Delta constitutes one of the worst forms of environmental degradation and contributes highly to climate change. The practice has continued primarily because of the unwillingness of government, which acts as the regulator and partner to the oil companies.”

    The activist said he organised the workshop in partnership with the Friends of the Earth to enlighten the residents on the impact of gas flare on their lives.

    He advised the host communities, policy makers, civil society groups and relevant government agencies to end gas flaring.

  • Total ends gas flaring from OMLs 102, 58

    Total Exploration and Production Nigeria Limited (TEPNL)  has completed gas flare down projects in two of its fields, its Managing Director, Nicholas Terraz, has said.

    At the Nigerian Gas Association’s Conference in Abuja, he said the flare out feats were achieved in Total’s offshore field in oil mining lease (OML) 102 and onshore acreage in OML 58.

    He said: “At Total, we are committed to better energy and have had a flare-out policy for producing fields and a no-flaring policy on all new developments since year 2000. The Amenam-Kpono and Akpo developments are examples of this in new projects whilst brown fields flare down projects have been completed in our OML 102 offshore and OML 58, onshore Nigeria.

    “In  a presentation entitled ‘’Harnessing natural gas: New opportunities for Nigeria’s energy agenda,’’ Terraz stated that with about 180 trillion cubic feet (TCF) of proved gas reserves and a potential for 600 TCF of which only 47 TCF is currently developed, natural gas is obviously a key resource for Nigeria, which apart from generating much needed export revenue, will also be a catalyst for rapid economic development especially in the areas of power generation and gas based industry growth.

    Total has been an active partner of the Federal Government and the Nigerian National Petroleum Corporation (NNPC) in the development of Nigerian gas sector. “We are a shareholder in Nigeria Liquefied Natural Gas (NLNG) and have been supplying gas to NLNG plant in Bonny since production started in 1999 contributing to significant reduction of gas flaring in Nigeria,’’he said.

    Total, with its Joint Venture partner NNPC, has built the Northern Option Pipeline (NOPL), a strategic 50 km gas pipeline with a capacity of 300 million standard cubic feet per day (MMSCF/D) designed to supply gas to the Alaoji power plant and other gas based industries in the Eastern domestic market. This is a major contribution to the efforts of the Nigerian government to develop the domestic gas market.  Gas supply to Alaoji plant through NOPL started on October 18, he added.

    He noted some achievements accomplished by the Nigerian Gas Master Plan such as growing domestic gas supply to about 1.3 billion cubic feet per day (bcf/d) from less than 1bcf/d, and export gas to over 3bcf/d.  Gas flaring has reduced from a high of 2.5bcf/d 10 years ago to about 0.8bcf/d today. Some major pipeline projects are either ongoing or have been completed. Escravos Lagos Pipeline 2 (ELPS 2) which will double the ELPS capacity and the Obiafu, Obrikom, Oben gas pipeline (OB3) East-West Interconnector are under construction while the NOPL from Rumuji to Imo River has been completed, he added.

    Terraz also noted some significant challenges in the gas subsector such as inadequate infrastructure along the value chain, insufficient pipeline work and increasing vandalism of existing ones, constrained power generation capacity due to inability to dispatch power to the grid even where sometimes gas is available, and upstream joint venture funding shortfalls, which delay projects including gas development and production projects, but this is being addressed in a creative manner by NNPC and JV partners.

    He also said lack of bankable commercial, fiscal and strong regulatory frameworks that stimulate new developments, including absence of PSC gas terms, were major challenge.

    Terraz said that Nigeria was important for Total. We have made major investments in the oil and gas industry over the past decades and this would continue. It is one of the countries we foresee long-term growth.

     

  • Gas demand rises

    Gas demand rises

    Demand for domestic gas is now on the rise following the marginal increase in the pump price of petrol and scarcity of kerosene.

    Vice President, Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Abubakar Dankigari in a telephone interview said “now most energy consumers have converted their utilities to gas; they are using gas now instead of kerosene.”

    Although he said that he could not quantify the percentage increase in the demand for gas, he added that “all I know is that they (consumers) are diverting their interest to gas.”

    He said the association is partnering with a foreign firm to make cylinders available to everybody, adding that IPMAN wanted all its member filling stations to commence gas sale.

  • ‘Nigeria’s gas output can deliver 32 Gw of power’

    If dysfunctional gas facilities are fixed and fiscal and regulatory policy issues in the gas subsector addressed, the current gas production can deliver 32 gigawatts (32,000Mw) of power, oil and gas industry operators have said.

    This was contained in a communiqué at the end of the three-day international gas conference of the Nigerian Gas Association (NGA) held in Abuja.

    It was signed by the association’s president, Mr. Dada Thomas, and made available to The Nation

    Giving the verdict, they said there is a need to urgently fix the dysfunctional gas-to-power value chain, to attract investment to the sector. There is also the need for the government to respect the sanctity of contracts and agreements.

    According to them, the illiquidity of the power market requires urgent attention. “We suggest a rethink of the quality and capitalisation of players, and a readjustment of the tariff structure may be required. Without a doubt, we must find creative securitisation mechanisms that improve bankability,” they added.

    On gas policy, the communiqué noted that the conference recognised the role of the NGA in creating sustained awareness on issues, and the opportunities within the gas sector. It posited that the association should continue to work with the government and stakeholders to harness gas as a catalyst for sustained economic development with the right regulations and policies.

    “The emerging gas roadmap by the government is a welcome development that could provide the much-needed clarity on issues of ownership, infrastructure development, gas gathering and pricing.

    “The association will mobilise the sector to do a proactive review of the Draft Gas Policy to provide a win-win document that will attract the required investment for the sector. The intent would be the reduction of lead-time between policy formulation, legislation and implementation to enhance the competitiveness of Nigeria as a preferred gas investment destination,” it said.

    According to the communiqué, the conference recognised the need to nurture the willing buyer-willing seller commercial model that will encourage and sustain the gas value chain, from the reservoir to the consumer.

    It also saw the need to encourage investment in exploration for gas to increase national reserves and facilitate access to such reserves by competent operators. It recognised the threat to security in the Niger Delta and acknowledged the progress being made to address the menace. “We agree that the sector must join hands with government to support intelligence based security arrangements.

    “NNPC Joint Venture funding continues to constrain rapid development. We support the efforts towards finding alternative funding mechanisms.

    “There is slow decision making by policy makers and regulators and conference strongly recommends a collaborative model to find fast track processes and solutions that achieve the desire for Nigeria to be a gas-based industrialised hub meeting both local and export demands.

    “Conference believes that financing is possible if the right conditions for success such as fixing the gaps in the value chain, avoiding policy summersault, honouring sanctity of contracts, stabilisation of the exchange rate, long term view of fiscal policies are in place.

    “There exists the need for approximately $51 billion in investment in the sector to cover gas exploration, processing, transportation and general infrastructure. Whilst acknowledging the funding constraints of government at this time, we still agree that such investments must be Government led. It might require creative schemes to leverage the existing assets and infrastructure,’’the communique added.

    “The need to establish a Gas Promotion Council that will address investment opportunities in the sector was raised. The NGA puts itself forward to midwife same if it finds government’s interest,” the communiqué added.

  • ‘Government should encourage gas usage’

    To discourage the continued use of firewood for cooking and deforestation, with their attendant environment and health hazards, the government needs to make gas more affordable to the average Nigerians and ensure that operators access foreign exchange (forex).

    The General Manager, Dozy Oil and Gas, Isaac Isiguzo, stated this.in Lagos.

    He said the Federal Government’s encouragement of investors to go into manufacturing and packaging of liquefied petroleum gas (LPG) would make Nigerians to shift from  wood to cooking gas.

    Isiguzo told The Nation in Lagos that the company was channeling efforts to curtail deforestation in line with the government’s initiative.

    He  said profit aside, it was patriotism that made the company key into the gas initiative, adding that the company was committed to partnering with the government to improve the life expectancy of Nigerians by switching to clean fuel such as LPG.

    He expressed worry that many Nigerians still depended on firewood, which is causing deforestation, adding that climate change and desertification are real.