The Nation Newspaper

Tag: LPGAN

  • DPR, SON to sanction erring gas plants

    DPR, SON to sanction erring gas plants

    TIME is up for erring Liquefied Petroleum Gas (LPG) plants. The Department of Petroleum Resources (DPR), Standards Organisation of Nigeria (SON) and the Liquefied Petroleum Gas Association of Nigeria (LPGAN) have resolved to deal with plants not following gas rules.

    Also under scrutiny are cooking gas retailers, unauthorised importers and marketers of gas cylinders.

    DPR, SON and LPGAN officials  in separate interviews with The Nation, said they had started investigations into the activities of  operators nationwide to determine thier level of compliance with safety guidelines.

    Head, Gas Department, DPR, Antigha Ekaluo, said the department had made arrangements to get all the stakeholders in the LPG sub-sector involved.

    The agency, it said, is auditing all the licensed gas plants to know those that were complying with the rules. He said owners of plants who failed to operate in line with the statutory provisions provided for the sub-sector risked being sanctioned.

    Ekaluo, who spoke on the sideline of a stakeholders’ conference in Lagos, said part of the measures to rid the industry of quacks is the licensing of retail outlets.

    He said: “Our inspectors have been directed to ensure compliance. The DPR in the coming months shall commence facility audit of licensed plants nationwide to ensure compliance with statutory provisions on plant operations.”

    Many of the marketers, Ekaluo said, sell and store LPG without licences, and in the process, contravene the laws guiding the operators. He said DPR is putting a stop to the menace to promote safety and healthy environment.

    He directed all plants to ensure that resale outlets have valid licenses to be able to operate well, adding that the body has directed its officials to move against illegal operators.’’

    SON’s Head of Enforcement Bede Obayi said the agency had started what he described as ‘search and fit’ exercise to know people behind the operation of illegal LPG plants and check their excesses.

    He said the body has officials in the 36 states and the Federal Capital Authority (FCT), working to rid the country of sub-standard LPG cylinders, among other products.

    Obayi said the body relies on external sources of information to deal with illegal sellers and importers of gas cylinders.

    He said: “Apart from the fact that SON’s officials have been deployed to check the activities of illegal importers in the country, the agency relies on ‘informants’ to get information on the hideouts of perpetrators of such crimes. Informants have been of great help to us in this regard. We have informants in ports across the country, and they oblige us with information needed to tackle the issue.

    “When we get information that a container carrying gas cylinders is leaving the ports, we mobilise our men to intercept the container. Once we discover that the products lack neceesary details, we impound them immediately.”

    Obayi said SON has intercepted several containers carrying substandard gas cylinders, seized and taken them to designated warehouses from where they were taken to steel firms for grinding and conversion into other metal objects.

    “The importation of substandard gas cylinders is the handiwork of some operators. We have directed people to apply to the Director-General, SON, Dr. Joseph Odumodu, for approval to import gas cylinders. There are procedures for bringing gas cylinders into the country. People that meet the guidelines have no problem. Once you are not complying with the guidelines, we stop you from importing the product. We are on top of the game,” he said.

    According to him, when arrests are made by SON, suspects and their goods are usually handed over to the police for further investigation and prosecution.

    The President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Dapo Adesina, said the association has  directed his members to report anybody contravening procedures for engaging in the business to the nearest police station.

    Adesina said there are 200 gas filling plant owners and 4,000 retailers in the country, noting that they have been certified to do the business. He added that the group’s duty is to pass safety information and other relevant data for growth to the operators.

    He said illegal operators of gas filling plants are not members of the association, and are treated as such.

    According to him, the power to approve LPG operators lies with the DPR, noting that the body regulates the sub-sector.

    Adesina said his members were aware of the safety procedures, and ready to comply.

    ”One way of tackling the menace is to educate members on the dangers of operating gas plants or selling the product without approval.

    “Through training, we enable our members to know gas compositions, how volatile the product is, and how to prevent explosion. The training is ongoing because we want to get to a level that the activities of fake operators are curtailed,’’ he said.

    There had been cases of gas explosions in some parts of the country that had resulted to fatalities. There was a gas explosion in Akure, the Ondo State capital a few weeks ago. The incident, which occurred at a gas station, drew the ire of stakeholders, including the state government, owners of LPG plants, among others. The group called on the Federal Government to ban any operator that is disobeying the rules.

  • ‘Infrastructure deficit inhibits growth in gas sector’

    Inadequate infrastructural facilities such as pipelines, pressure station, and Central Processing Unit (CPUs), is hindering the growth of the gas sector, the President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr. Dayo Adesina, has said.

    Other  challenges, he said, include lack of gas stripping plants and effective regulatory mechanisms, among others.

    Adesina said the problems are ineffective utilisation of gas, which makes it impossible for critical sectors of the economy to access the product for growth. He said the country is finding it difficult to take the gas to where it is needed, processed and used to achieve the desired results.  He lamented that Nigeria is flaring gas without considering its socio-economic implications.

    He said: “The country is flaring millions of metric tonnes of gas daily, because there is no infrastructure in place to capture it for productive usage.  And to take the gas to where it is needed, the government has not done much  in that regard. Facilities such as Central Processing Units (CPUs), gas stripping plants, pressure stations and others are lacking in the country. What is considered a waste in the gas sector can be turned around and be useful in other sectors, if there are adequate infrastructural facilities in place.”

    According to him, the gas  being flared can power the whole of Africa, if the right policies are in place.

    Also, the Director-General, Bureau of Public Enterprise (BPE), Benjamin Dikki in an interview with The Nation, said gas shortage has affected the operation of the power sector. Dikki said infrastructural deficit in the gas industry is having spillover effects in the power sector. “Instead of wasting gas by flaring it, we can channel it to the power sector. Due to gas shortage, the power sector cannot generate enough electricity. We are producing less than 6,000MW of electricity. We are hovering between 4,000MW to 5,000MW of electricity; when we are supposed to generate 10,000MW.We have been targetting 10,000MW for some time now and we are yet to achieve it.

    The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, and her counterpart in the Power Ministry, Prof. Chinedu Nebo, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), and other relevant stakeholders had in Abuja, discussed how to make gas available to the power sector.

  • ‘Infrastructure deficit inhibits growth in gas sector’

    ‘Infrastructure deficit inhibits growth in gas sector’

    Inadequate infrastructural facilities, such as pipelines, pressure station, and Central Processing Unit (CPUs), are hindering the growth of the gas sector, the President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr. Dayo Adesina, has said.

    Other  challenges, he said, include lack of gas stripping plants and effective regulatory mechanisms, among others.

    Adesina said the problems are ineffective utilisation of gas, which makes it impossible for critical sectors of the economy to access the product for growth. He said the country is finding it difficult to take the gas to where it is needed, processed and used to achieve the desired results.  He lamented that Nigeria is flaring gas without considering its socio-economic implications.

    He said: “The country is flaring millions of metric tonnes of gas daily, because there is no infrastructure in place to capture it for productive usage.  And to take the gas to where it is needed, the government has not done much  in that regard. Facilities such as Central Processing Units (CPUs), gas stripping plants, pressure stations and others are lacking in the country. What is considered a waste in the gas sector can be turned around and be useful in other sectors, if there are adequate infrastructural facilities in place.”

    According to him, the gas  being flared can power the whole of Africa, if the right policies are in place.

    Also, the Director-General, Bureau of Public Enterprise (BPE), Benjamin Dikki, in an interview with The Nation, said gas shortage has affected the operation of the power sector. Dikki said infrastructural deficit in the gas industry is having spillover effects in the power sector. “Instead of wasting gas by flaring it, we can channel it to the power sector. Due to gas shortage, the power sector cannot generate enough electricity. We are producing less than 6,000MW of electricity. We are hovering between 4,000MW to 5,000MW of electricity; when we are supposed to generate 10,000MW.We have been targetting 10,000MW for some time now and we are yet to achieve it.

    The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, and her counterpart in the Power Ministry, Prof. Chinedu Nebo, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), and other relevant stakeholders had in Abuja, discussed how to make gas available to the power sector.

  • ‘Infrastructure deficit inhibits growth of gas sector’

    Inadequate infrastructural facilities such as pipelines, pressure station, and Central Processing Unit (CPUs), is hindering the growth of the gas sector, the President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr. Dayo Adesina, has said.

    Others challenges, he said, include lack of gas stripping plants and effective regulatory mechanisms, among others.

    Adesina said the problems are ineffective utilisation of gas, which makes it impossible for critical sectors of the economy to access the product for growth. He said the country is finding it difficult to take the gas to where it is needed, processed and used to achieve the desired results.  He lamented that Nigeria is flaring gas without considering its socio-economic implications.

    He said: “The country is flaring millions of metric tonnes of gas daily, because there is no infrastructure in place to capture it for productive usage.  And to take the gas to where it is needed, the government has done in that regard. Facilities such as Central Processing Units (CPUs), gas stripping plants, pressure stations and others are lacking in the country. What is considered a waste in the gas sector can be turned around and be useful in other sectors, if there are adequate infrastructural facilities in place.”

    According to him, the gas  being flared can power the whole of Africa, if the right policies are in place.

    Also, the Director -General, Bureau of Public Enterprise (BPE), Benjamin Dikki in an interview with The Nation, said gas shortage has affected the operation of the power sector. Dikki said infrastructural deficit in the gas industry is having spillover effects in the power sector. “Instead of wasting gas by flaring it, we can channel it to the power sector. Due to gas shortage, the power sector cannot generate enough electricity. We are producing less than 6,000MW of electricity. We are hovering between 4,000MW to 5,000MW of electricity; when we are suppose to generate 10,000MW.  We have been targetting 10,000MW for some time now and we are yet to achieve it.

    The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, and her counterpart in the Power Ministry, Prof. Chinedu Nebo, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), and other relevant stakeholders had in Abuja, discussed how to make gas available to the power sector.

  • ‘Infrastructure deficit inhibits growth of gas sector’

    ‘Infrastructure deficit inhibits growth of gas sector’

    Inadequate infrastructural facilities such as pipelines, pressure station, and Central Processing Unit (CPUs), hinder growth of the gas sector, the President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr. Dayo Adesina, has said.

    Others challenges, he said, include lack of gas stripping plants and effective regulatory mechanisms, among others.

    Adesina said the problems are ineffective utilisation of gas, which makes it impossible for critical sectors of the economy to access the product for growth. He said the country is finding it difficult to take the gas to where it is needed, processed and used it to achieve the desired results.  He lamented that Nigeria is flaring gas without considering its socio-economic implications.

    He said: “The country is flaring millions of metric tonnes of gas daily, because there is no infrastructure in place to capture it for productive usage.  And to take the gas to where it is needed, the government has done in that regard. Facilities such as Central Processing Units (CPUs), gas stripping plants, pressure stations and others are lacking in the country. What is considered a waste in the gas sector can be turnaround and useful in other sectors, if there are adequate infrastructural facilities in place.”

    According to him, the gas that is being flared in the country can power the whole of Africa, if the right policies are in place.

    Also, the Director -General, Bureau of Public Enterprise (BPE), Benjamin Dikki in an interview with The Nation, said that gas shortage has affected the operation of the power sector. Dikki said infrastructural deficit in the gas industry is having spillover effects in the power sector. “Instead of wasting gas by flaring it, we can channel it to the power sector. Due to gas shortage, the power sector cannot generate enough electricity. We are producing less than 6,000MW of electricity. We are hovering between 4,000MW to 5,000MW of electricity; when we are suppose to generate 10,000MW.  We have been targetting 10,000MW for some time now and we are yet to achieve it.

    The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, and her counterpart in the Power Ministry, Prof. Chinedu Nebo, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), and other relevant stakeholders had in Abuja, discussed how to make gas available to the power sector.

  • Indigenous operators, partners for JVAs

    Indigenous operators, partners for JVAs

    Local oil operators and their partners are fine-tuning arrangements to seal Joint Venture Agreements (JVAs) in the oil and gas industry, the President, Liquefied Natural Gas Association of Nigeria (LPGAN), Dapo Adesina, has said.

    Speaking to The Nation against the backdrop of the decision of the international oil companies (IOCs) to divest their stakes because of crude oil theft, pipeline vandalism and loss of revenue, Adesina said local players were considering JVAs to execute huge ticket transactions, especially the ones found in deep off sites.

    He said: “With IOCs leaving the shores of Nigeria and selling their marginal fields, the local operators have no choice but to brace for the challenges ahead. They are making moves within and outside the country on the issue. A combination of technical expertise and funding is required for indigenous operators to increase their participation in exploring activities. Already, they contribute 10 per cent to exploration; they want to go beyond this in the foreseeable future.

    ‘’ They did not achieve 10 per cent overnight. They started somewhere and they can dominate the exploration business in the event that oil majors left the country. Technology is available. What they need is funding running into billions of dollars to do business which international oil firms are doing. New partnerships that would provide such activities are being formed. It is not impossible for local firms to go into deep offshore projects in the next few years.’’

    He said discussions tend towards that direction, urging operators not to come together and move the industry forward.

    He said many oil companies were divesting from offshore to play in onshore, arguing that the industry dynamics unfold globally.

    On crude oil theft, he said the government, security agencies and oil companies have a role to play in checking the vices.

    ‘’Oil theft is something that needs sustained efforts before it can be dealt with. Stakeholders, including oil firms, security institutions, and governments at all levels and others must involve in the fight against crude oil theft. Bigger vessels are used to steal oil; they must be intercepted by powerful security team/ apparatus,’’ he added.