The Nation Newspaper

Tag: Gas

  • ‘Gas supply bottleneck stalls NIPPs’ privatisation’

    ‘Gas supply bottleneck stalls NIPPs’ privatisation’

    The Director General, mBureau of Public Enterprises (BPE), Mr. Benjamin Dikki, has blamed bottleneck in the signing of  gas agreements that would make the transaction bankable for stalling on-going privatisation of the National Integrated Power Project (NIPP) plants.

    He said the process was not  stalled because of politics  as being speculated in some quarters.

    According to Dikki, concerted efforts were being made to secure reliable gas supply that will facilitate the signing of the gas agreements.

    Its Head, Public Communications,  Mr. Chigbo Anichebe in a statement yesterday, made the clarification at a panel discussion titled Making the Power Sector Privatisation Work in a Privatised Environment” organised by the Business Day newspapers, in Lagos.

    Dikki said the privatisation programme was anchored on the attainment of clearly defined goals and parameters, adding that in the case of the generation companies, capacity is expected to be ramped up from the current low levels to those that meet the minimum target capacities specified under the respective business plans submitted by the core investors.

    For the distribution companies, he said the performance of the new owners would be measured on the basis of their abilities to reduce the Aggregate Technical, Commercial and Collection (ATC&C) loss targets specified in their business plans.

  • Fed Govt to increase gas flaring fine

    The Federal Government is planning to raise the fine paid on flared gas by oil companies in Nigeria and the committee working on the project may submit its report next month, it was learnt.

    A source told The Nation in confidence that a committee set up by the government is working on the appropriate fine that will compel companies to faithfully comply with government’s aspiration for zero gas flaring from all the oil producing fields.

    Oil producing companies in Nigeria currently pay a fine of $3.50 per 1000 standard cubic feet of gas flared, which most of the companies were said to smartly evade. According to the Department of Petroleum Resources (DPR) report, Nigeria loses $4.9 million daily when the quantity of flared gas is computed at the rate of $3.50 per 1000 standard cubic feet. At   that rate, the loss amounts to $1.7885 billion per year, the agency said.

    Although the source didn’t disclose what the new fine will be, he noted that the committee comprised of representatives from the major stakeholders in the gas industry including the petroleum and power ministries and the Nigerian Electricity Regulatory Commission (NERC), among others. The source said that the committee will recommend enough penalty regime that will compel oil firms to commit to utilisation of associated gas that is being flared. The report will be out next month, the source added.

    The source said that the decision to increase the fine became imperative because of gap in gas supply and demand. Despite the huge gas resource in the country, we don’t have enough gas to power electricity generation companies, which is grave setback to economic and industrial development, he said. Besides, he said that the country flares more gas than it utilises, which is not complimentary.

    He said the situation is worsened by the fact that Nigeria’s source of power supply is predominantly thermal, which accounts for over 70 per cent of the total energy supply. He said that Power Ministry and NERC were represented in the committee because of Federal Government interest and desire to provide stable power supply.

    An estimated 1.4 billion cubic feet of gas is flared per day, and this occurs through the year. Last year, the House Committee on Gas Resources during the presentation of its report on a Bill for an Act to Amend the Associated Gas Re-injection Act No. 99 of 1979 Cap. A25, Laws of the Federation of Nigeria, put the nation’s loss to gas flaring at $2.5 billion yearly.

    Although the government increased penalty for gas flaring from N10 to $3.5 per 1000 standard cubic, the passage of the Petroleum Industry Bill (PIB) would fast-track the achievement of government’s aspiration to fully utilise flared gas, and reduce or eliminate environmental pollution caused by gas flaring.  “If the PIB is passed, it will put into effect modern petroleum legal framework and align operation of the Nigerian gas sector to international best practices and also enhance transparency in the sector,” the source said.

  • Shell warns on dangers of building on gas pipelines

    Shell Nigeria Gas (SNG) has drawn the attention of members of the public to the dangers of building on gas pipelines.

    A statement by Shell’s Corporate Media Relations Manager, Precious Okolobo, said SNG stressed the dangers of encroaching on the pathway (right-of-way) of gas pipelines during a campaign on the issue in its business areas in Ogun, Rivers and Abia states.

    The company said the exercise has already been held in Ogun State, with SNG and its Right-of-Way campaign partner, the African Foundation for Environment and Development, sensitising communities in Ijoko, Itokin and Ota in Ado Odo-Ota Local Government Area, on the dangers of vandalising pipelines, bush-burning, and construction of structures on and around gas pipelines.

    “The campaign goes beyond our business interests,” pointed out SNG Managing Director, Toyin Adenuga. “It is rather more about safety of lives and property. People who build on gas pipelines risk losing everything including their lives and things they’ve worked hard for. The campaign is to make them to realise that the risk is not worth it.”

    He said SNG would continue to engage the communities as partners to promote the company’s safety culture and respect for the environment. The campaign will be taken to Port Harcourt and Aba where gas pipeline Right-of-Way surveillance contractors will dedicate one day to walk through SNG pipeline routes distributing flyers and other enlightenment materials.

    SNG is a wholly Shell-owned gas distribution company which began operations in 1998. The company distributes gas to industrial consumers in Ogun, Rivers and Abia states.

     

  • Nigeria loses N31.8b to gas flaring

    Nigeria loses N31.8b to gas flaring

    The Federal Government  lost N31.8billion through gas flaring in the month of February this year alone, the Social Development Integrated Centre (Social Action), a non-governmental organisation (NGO),  has said.

    Its Communications Officer, Lillian Akhigbe,  in a statement issued in Port Harcourt yesterday, described gas flaring as the bane of the nation’s gas sector

    She lamented that very little has been achieved to stimulate growth in the sector since Nigerian Gas Master Plan  (NGMP) was approved in 2008.

    According to her, the NGMP was designed to boost the gas sector in order to attain a full market-driven status which regrettably had not been acheived.

    She also lamented that the country had neither experienced a long term energy security nor enjoyed comparative advantage in the high-value gas export market, adding that it is persistent gas-flaring, mainly in the oil and gas producing communities of the Niger Delta region, that had become the order of the day.

    Akhigbe said: “Statistics indicate that Nigeria has about 179 trillion cubic feet of proven gas reserves, yet it lost $198.775 million (about N31.8 billion) to gas flaring in the month of February, 2014.

    “The NNPC data further revealed that the amount of gas flared was 50.098 billion Standard Cubic Feet (SCF), which is equivalent to 23.2 per cent of the total gas produced in the period, 215.93 billion SCF.

    “The abundant gas resources have regrettably spelt doom rather than boom for the people whose environment is perpetually devastated by incessant emission of greenhouse gases into the atmosphere.

    “Gas flaring in Nigeria dates back to 1956, when oil was first discovered in the country and as oil production increased, so did gas production, of which the gas is often regarded as a waste product and disposed into the atmosphere.”

    While fingering independent oil companies, marginal field operators, production sharing companies and joint venture operators for being involved in gas flaring to varying degrees, Akhigbe also said government has not adequately checkmated these firms.

    “So far, government’s efforts at curbing the menace of gas flaring have been feeble and grossly inadequate, as Nigeria remains one of the largest gas-flaring countries in the world,” she said, adding that the last National Conference recommended in its final report that gas-flaring should be criminalised and offenders made to pay the commercial value of the flared gas. The conference also recommended that communities prone to gas flaring should be paid compensation for its devastating effects on health, safety and environment.

  • Govt gives $1b to boost gas supply

    Govt gives $1b to boost gas supply

    Gas supply has got a $1billion boost, in the country, with the Federal Government approving the cash for the Niger Delta Power Holding Company (NDPHC). It is all in a bid to push up electricity generation.

    NDPHC Managing Director James Olotu broke the news at the end of a meeting chaired by Vice President Namadi Sambo at the State House, Abuja.

    He noted that there was still a shortfall in the gas sector despite the concerted efforts by the government to address the issue.

    He said: “The board of the Niger Delta Power Holding Company therefore met Friday and looked at additional strategies in which government again can move the sector forward. One of such strategies is to commit some funds out of the expectations from the sale of power holding companies towards partnering with the private sector again in developing some hollow walls, identified certain portions where they have been proven gas availability.

    “This programme promises to unlock gas from these locations within a short time and then complement efforts currently being done by the Petroleum Ministry to ensure that we close the gap between gas requirement and gas supply. The sum of $1 billion out of the funds of NDPHC is being put on the ground to support this iniative and this will involve a lot of private sector investors who will be willing to partner and get this gas supply enhanced.”

    “The petroleum ministry is agreeable to this and is supporting the entire programme, the ministry of power, finance are also in the picture. And so we hope that gas supply will become a thing of the past very soon. Then maybe we can begin to have more megawatts.” Olotu added

    The thinking is that since some power plants have been built, adequate gas supplies will enhance their performance and result in better electricity.

    The Permanent Secretary, Power Ministry, Godknows Igali, said the ministers of Power and Petroleum, Central Bank of Nigeria (CBN) Governor and chairman of National Electricity Regulatory Commission (NERC) met at the weekend on resolving the shortfall in gas supply.

    “Today’s meeting is on a higher level, chaired by the Vice President during which the vision of the Niger Delta Power Holding Company, which is already playing a critical role in the power sector, especially in the development of the NIPP power plant, and also now going to make further investment in the sector, plans towards ensuring gas is available to these plants.”

  • ‘NNPC committed to gas delivery’

    ‘NNPC committed to gas delivery’

    The Nigerian National Petroleum Corporation (NNPC) has said it is committed to the Federal Government’s gas revolution agenda to ensure efficient gas-to-power and gas-to-industry deliveries and sufficient gas supply for domestic consumption.

    NNPC’s Group Managing Director, Andrew Yakubu, spoke during the combined opening ceremony of the batches 073 to 079 capacity building programme of the NNPC tagged Chief Officers Management Development programme (COMDP) in Abuja.

    The Group General Manager, Group Public Affairs Division, NNPC, Ohi Alegbe, said Yakubu noted that the NNPC is saddled with ensuring that the abundant gas value chain is explored maximally, stressing that the corporation must do everything possible to make the gas revolution agenda succeed.

    Yakubu admonished the participants to come up with creative ways of dealing with the target of fully monetising the gas resource endowment of the nation, which remains a crucial deliverable of the Federal Government’s gas revolution Agenda.

    He emphasised that the management was fully committed to supporting the capacity development programme and will continue to provide all resources required to sustain growth of the programme.

    In his lecture titled: “Gas commercialication and economic growth,” Prof Pat Utomi of the Lagos Business School, said the NNPC is required to deliver on the mandate of the gas-to-power strategy execution and effectiveness.

    He noted that there was every need for the NNPC to build human capital focused on the gas knowledge economy that will ensure domestic gas utilisation and provision of strong gas infrastructure to protect the environment and bottle the gas for effective consumption.

    The Group Executive Director, Corporate Services, NNPC, Dr. Dan Efebo, assured the participants of the preparedness of management to expose them to knowledge that will deliver on the various core mandates of the corporation.

    The  COMDP batches 073-079 comprised 375 candidates and they are expected to run a four-module programme, which includes leadership, problem solving research work, oil and gas fundamentals and emerging trends in oil and gas industry.

    The programme, which is mandatory for senior staff, has equipped several members of staff with skills and competences for transition to management cadre in the last 24 years.

  • ‘Needed: Infrastructure in oil, gas’

    Nigeria requires infrastructure to achieve the much-needed growth in its oil and gas industry, the Managing Director, Chevron Nigeria Limited, Andrew Fawthrop, has said.

    Fawthrop, who spoke at a stakeholders’ forum in Lagos, said there are investment windows in the industry, adding that only consistent and solid infrastructural framework can help foster the sector’s growth.

    He said the development of infrastructure would help in providing the needed energy support for the populace and further galvanise the tempo of economic activities.

    ‘’Development of infrastructure is required to get energy support in Nigeria to Nigerians, and Africa to Africans. Nigeria can develop its energy resources, as well as provide them commercially to bolster growth. Though Africa contributes more to energy security in the world, the impacts are not being felt in economies of oil producing countries,” he said, adding that a stable framework is needed to increase Direct Foreign Investments (FDIs) in Nigeria and Africa.

    He said immense opportunities are waiting to be tapped in the continent.

    ‘’To increase the inflow of foreign investment in energy resources in Nigeria and Africa in particular, government and private sector participation is needed. Chevron has for more than a century, been doing business in Africa. We are focusing on opportunities in Angola to boost investment prospects in Africa,” he added.

     

  • Scare in Benin as gas explosion kills shop owner

    Panic gripped residents of Aruosa street on Sakponba road and adjoining streets in Benin, Edo State following a terrifying loud gas explosion which emanated from a gas shop claiming the life of the shop owner.

    The deceased simply identified as Steve in his late 40’s had just resumed his routine work on Sunday when the incident happened.

    Steve who deals in the supply of oxygen and cooking gas was blown apart in his shop.

    The blast which shattered his limbs created panic around the vicinity as bureau de change dealers, passersby and resident scampered for safety.

    A neigbour to late Steve who pleaded not to be mention said ” this is a very sad day for us because late Steve was a good man.”

    “When we heard the loud bang we thought it was Boko Haram bomb because we have never heard this kind of explosion. Immediately the explosion happened people started running up and down fearing that it was Boko Haram.”

    He said it was shortly after the blast that they saw Steve few metres from his shop reeking in pain and was immediately rushed to the state owned Central hospital where he later.

    The remains of the deceased have been deposited at the mortuary.

  • Stakeholders in oil and gas urged to update knowledge

    • Peacock begins new management programmes

    The Principal, Peacock College, Dr. Zenon Adamek, has called on players in the oil and gas industry to update their knowledge to meet up with competitions in the industry.

    Ademak spoke at a forum where he introduced a new management programme for the oil and gas sector by the institution.

    The programme, which he said, would lead to MSc and MBA degrees, is designed for company executives and government technocrats, who can participate online and onsite.

    He said the programme is meant for them.

    He said the college, which is part of the Peacock Group, with interests in travel management and financial services, is also offering courses in Marketing, Personal Development, Travel and Tourism as well as Information and Communication Technology.

    Adamek said: “The programmes, which are essentially short courses, kicked off in February at the institution’s facility located at Ramsgate in London. The courses, Ademak explained, are designed to fire up executives into their creative peak in order to add value to their organisations.

    Under the programme, he said, participants will be taken through courses, such as Petroleum Economics, Risk Analysis, Oil and Gas Accounting and the Fundamentals of Gas and LNG Projects.”

    “To keep up in the modern world, you have to continually top up your skills and acquire new ones along the way.

    “We offer a lot more. These include experienced instructors, modern instructional aides, networking opportunities with participants from Nigeria and other Africa countries, Asia and the Middle East,” he added.

     

  • Nigeria loses 1.1m gas daily

    Nigeria loses 1.1m gas daily

    • Gas confab coming

    Nigeria wastes about 1.1 million cubic metres of gas daily, it was learnt yesterday.

    Representatives of Soprise Impact Organisation, an Oil and Gas servicing firm based in Europe and America, told the Senate Committee on Gas that the amount was capable of providing electricity to about 20 million houses.

    The Chief Executive Officer of the firm, Peter Jenson, lamented that the amount of gas being lost to flaring in the Niger Delta region of the country, if harnessed and processed, could solve the power problems of the entire African continent and beyond.

    To address the development, Jensen explained that his firm which has branches in Norway, United Kingdom and the United States, has concluded arrangements to hold a Gas Conference in Nigeria on March 12.

    He said the forum would attract critical stakeholders in the sector, while experts would speak on the theme of the conference, which is, ‘Deepening Domestic Gas Implementation.’

    Jensen expressed confidence that the quality of experts’ presentations on the subject matter would assist policy makers and investors to take advantage of the abundant gas in the country and commit resources to processing it.

    He said: “We are here to seek the support of the Senate Committee on gas in partnering with the Federal Government on how to attract investors into the Nigerian gas sector to improve power supply, create more jobs and stop polution in the Niger Delta region.”

    Chairman of the Committee, Senator Nkechi Nwogu, commended the efforts of the consultants and asked them to request the partnership and support of the committee towards the success of the conference.