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Tag: NAEE

  • Economists urge govt to balance economic gains with social protection

    Economists urge govt to balance economic gains with social protection

    The Nigerian Association for Energy Economics (NAEE) yesterday rated President Bola Ahmed Tinubu macroeconomics policies very high but urged the government to protect the vulnerable groups in the country.

    In his keynote paper at the 18th NAEE/ International Association for Energy Economics (IAEE) Annual International Conference in Abuja, the former NAEE President, Prof. Adeola Adenikinju, who thumped up for the government also urged the President to identify the susceptible group because the market will not address their issues automatically.

    The theme of the conference is “Emerging Geopolitics of the Energy landscape – Navigating Global Shifts and their impacts on Developing Economies.”

    He said, “In terms of macro policies, macro stability, government is doing fantastically well. But  you see, in this kind of reforms, you must also find a way  of ensuring that you identify the vulnerable groups and see how you can protect them.  The market will not do that for you.”

    He aligned with the position of the World Bank and the International Monetary Fund that the Nigerian Marco economic policies are good to move the citizenry forward in the long run.

    Proffering solutions on how to address the issues of the vulnerable, he asked the government to give every Nigerian access to affordable electricity with deployment of solar energy.

    Adenikinju also called for the removal of constraints to access to domestic gas to allow penetration of the Liquefied Petroleum Gas (LPG).

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    Meanwhile, the African Petroleum Producers Association (APPO) Secretary General, Dr. Omar Faruk said for the first time since the International Energy Agency (IEA) began to strongly advocate the end of fossil fuel use, the agency has now admitted that fossil fuels cannot be easily eliminated and that the much-touted promises of renewable energy are far from being realized within the timeframe the world has been led to believe.

    According to him, what the IEA has now acknowledged is something APPO has consistently maintained since the formal global shift away from fossil fuels symbolized by the 2015 Paris Climate Agreement.

    He added that “As leaders in Africa’s energy industry, I hope this significant admission by the IEA encourages us to be more critical in accepting dogmas presented as scientific facts.”

    Continuing, he said, “If Africa fails to produce the components it needs, whether in renewable or conventional energy, it will remain trapped in dependency.

    “My first point, therefore, is this: whatever the direction of the global energy transition, we must understand its economic implications for Nigeria. “The term “transition” implies moving from one system to another. But before we can move, we must first master what we currently have.

    “Right now, we are energy insecure. Our power systems remain fragile, and our mastery of even the existing technologies—alternating and direct current systems—is still limited.”

  • FG begin discussions with illegal refiners

    FG begin discussions with illegal refiners

    NAEE: regularization of artisanal refineries will save economy

    Following the federal government plans to regularize illegal refineries into modular refineries, it has in the last few weeks commenced discussions with some of the operators of refineries.

    Meanwhile, the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, who made this known Tuesday said “In the past few weeks, we have opened constructive discussions with some of these  has opened discussions with illegal refiners and government is working to ensure that the initiative is implemented.”

    He added that  the federal government will in this month start installment payment of JVC cash call.

    The minister was represented by the Executive Secretary, Petroleum Technology Development Fund (PTDF), Dr. Bello Aliyu Gusau spoke during the 10th conference of Nigerian Association for Energy Economics (NAEE), with the theme: “Energy, Economy and the Environment: The Interplay of Technology, Economy and Public Policy,” in Abuja.

    Describing the situation that Nigeria has found itself today as the one beyond price shock, the Nigerian National Petroleum Corporation (NNPC) Group Managing, Dr. Maikanti Baru, noted that militancy in the Niger Delta further worsened the economic situation of the country.

    According to the Group General Manager, Corporate Planning and Services, Umar Ajia  who represented the NNPC boss, “NNPC is to maximize our energy resource to forestall the reoccurrence of our present economic predicament.”

    The NNPC boss advised that it is also important to ensure that operators in the sector implement their obligations to the host communities.

    Speaking with journalists at the event, the association’s President, Prof. Wumi Iledare,  said that federal government’s move to regularize the illegal or artisanal refineries in the Niger Delta will save the economy.

    He pointed out illegal refining has been attractive because they operators are not paying for the crude.

    According to him, after a tax holiday, the regularized refineries will start paying for the crude and they will be trained on the technology in order to reduce environmental pollution.

    Iledare said : ” The only reason why the illegal refiners are making money is because they are not paying for the crude. Because if you look at the margin in refinery economics, it is the crude that is the driver. If someone is taking apt he crude and he is not paying for it it will appear as if it is profitable.

    “The technology is also crude which means they are not actually mindful of the environmental implications of refinery process. I think what the government is trying to do, is to find a way to make sure that they are educated enough to acquire the technology that will reduce environmental pollution and get them to pay for the crude.”

  • More households to be hooked on national grid

    More households to be hooked on national grid

    •’Why we’re yet to adopt coal-to-power’

    The Federal Government promised yesterday to connect at least 75 per cent of households to the national grid by 2020.

    Minister of Power Prof. Chinedu Nebo said this in Abuja at the seventh annual conference of the Nigerian Association for Energy Economics (NAEE).

    He said: “We are getting these things ready. The Federal Government is investing huge resources to make sure that most communities get connected. That is going to happen. By the grace of God, it will not be long. By 2020, 75 per cent of Nigerian population and households will be connected to the national grid.”

    The minister explained that because of the vandalism at the nation’s gas pipeline, the Federal Government had learnt not to depend on just one source of energy.

    He said the government decided to go beyond a monolithic source to the development of an energy mix to complement gas.

    Prof Nebo said the Federal Government started the 700 megawatts (MW) Hydroelectric Project in Zungeru, Niger State.

    According to him, the government would soon begin the development of the Mambilla Hydro Power project, besides the adoption of renewable energy from wind, solar, biomass and biofuel.

    Prof Nebo said Nigeria had not utilised its coal to generate power because there was no adequate quantity.

    The minister assured that the Federal Government was working on a bankable feasibility study on the use of coal-for-power.

    According to him, for Nigeria to venture into coal-to-power, there must be proof of adequate quantity to last 25 to 30 years.

    He said: “But we don’t have the finite quantity of coal deposit in Nigeria…We need enough coal for 25 to 30 years. We are working on bankable feasibility study to ensure that we don’t just rush into coal power plant without making sure of adequate supply.”

    On whether or not the vision of connecting 75 per cent of Nigerians to the national grid by 2020 was realisable, Nebo said: “What the Goodluck Jonathan administration has put in place is dynamic, with infrastructural development not only conceived but also being implemented in extensive grid transmission and will soon make a national grid possible.

    “By the grace of God, we will be able to achieve that, and for those not connected to the national grid we are making efforts that they have power upgrade sufficient for them.”

     

  • Govt urged to find new market as US embraces shale oil

    Govt urged to find new market as US embraces shale oil

    Nigeria must rethink its marketing strategies to win the confidence of prospective buyers of its crude oil, an expert, Prof Adeola Adenikinju has said.

    He told The Nation that the introduction of shale oil by the United States (US) has implication for the nation’s oil and gas sector. Shale oil is a petroleum obtained by the distillation of bituminious shales.

    He said the country needs to adopt a more flexible and proactive strategy, by offering discounts to potential buyers of its oil.

    Adenikinju, the President of National Association of Energy Economics (NAEE), said India and China were Nigeria’s new oil destinations, advising the Federal Government to offer them discounts to win their confidence.

    “In the short- to-medium term, the emergence of shale oil will affect Nigeria’s ability to generate more money from the market, the reason being that the United States is the largest importer of our oil. Now, that the US is more concerned about the development and sales of its oil, Nigeria needs to overhaul its strategies to win new and stronger markets.

    “Nigeria will be struggling with other countries to penetrate new markets, especially India and China. We need to understand the fact that the two countries already have commitments, and the only way to penetrate them is to offer them discounts on any volume of crude they are buying from us,” he said, adding that there is nothing wrong in offering your prospective customers discounts. “In business, when you are entering a new market, you adopt different strategies to get your customers look in your direction. I think that is the most valuable option available to Nigeria now.”

    He advised the government to put in place short-medium and long-term strategies to cushion the shocks in the global oil market, adding that the inability to do that would affect the country. He listed the strategies to include building refineries in order to meet local demands and further reduce importation; prospecting for new buyers in advance to mitigate the shocks of losing some markets; offering a discounted oil price and providing value additions in the industry, among others.

    According to him, Nigeria must look beyond the US if it wants to achieve a lot in the global oil market.

    He said while it is good to acknowledge the growing influence of US in the oil market, the need to consider new debutants should not be overlooked.

    He explained that in recent times, some countries have discovered crude oil in West Africa, saying those countries have added to the list of players in the market. This means that the more players in the market, the stiffer the competition, he said.

    “Nigeria must be wary of these countries, by putting measures to protect its oil. That is why the government must consider future and potential problems, and find means of preventing them,” he stated.

    Also, the nation’s oil and gas industry is threatened by the activities of oil thieves and its attendant loss of an estimated $10billion in the last four years. While reacting to the issue, the President, Petroleum and Natural Gas Senior Association of Nigeria(PENGASSAN), Babatunde Ogun, said the development is making International Oil Companies to divest from the industry, as well as posing more threat to the economy. He said companies, such as Shell, Chevron, Addas, Petrobras, among others have plans to divest their stakes in the industry.

    He said: “Shell has divested part of its stakes in the industry. Chevron has concluded plans to do so. Addax and Petrolbras are making similar moves.”

    He said the companies are facing three problems namely; losing crude oil production and profit as a result of the activities of oil thieves, facing attacks from the government’s agencies and civil liberty organisations and spending a lot of money to repair the vandalised pipelines.

  • Investors promise $150m on alternative energy in Ogun

    At least 10 investors including foreign and indigenous companies have committed to investing about $150 million in alternative energy in Ogun State.

    The Special Adviser to Governor on Energy, Chief Taiwo Fagbemi, disclosed this during a press conference in Abeokuta to announce the 2012 Nigeria Alternative Energy Expo (NAEE), which will be hosted by the Ogun State Government from October 29 to 31 at the June 12 Cultural Centre in Abeokuta, the state capital.

    He said the reason Governor Ibikunle Amosun approved the hosting of the expo, is to bring in activities that would improve the energy sector of Ogun State adding that all the states and 774 local governments in the country would be invited. “It will not be a talk show. It will be a practical transformation event as the exhibitors will showcase their expertise in the state,” he added.

    He also said the government would carry out an energy audit of the state to determine the state’s energy policy.

    On the quantum of energy the investors eye to generate through alternative energy, Fagbemi said that would be determined after the expo, when the state has signed memorandum of understanding (MoU) with the investors, and know what the investors would be able to do within a given period.

    He said the event would offer a platform for all stakeholders to network and transfer knowledge and skills; raise awareness and educate the public about climate change in Nigeria and Ogun State in particular and specifically highlight Governor Ibikunle Amosun’s five cardinal point initiatives in the area of rural and infrastructural developments; showcase local and international initiatives and technologies that are at the forefront of renewable energy technology and climate change resilience; and bridge the gap between investors and renewable energy project development in Ogun State and Nigeria, among others.

    Fagbemi said: “As at today, we have 10 confirmed exhibitors. The expo is key to help mobilise foreign investment in energy sector. Between our confirmed exhibitors, they are having more than $100 million to $150 million to be invested in the state. These include the commitment of PAX of South Africa and Katika Energy Limited of Germany and Nigeria. The consortium has operations in London, United States, Germany, China, Nigeria and South Africa where massive campaigns have been mounted with road-shows to showcase Nigeria’s rising image.

    “The Nigerian Alternative Energy Expo is designed to enable participants stay abreast of developments and highlight issues affecting the energy industry and further provide strategies, technologies and policies covering the wind, solar, biofuel, hydrocarbon, geothermal, ocean/tidal/ wave, agriculture, environment, finance and hydrogen in Nigeria. We believe there is no other better time to be part of this exciting moment that Nigerian government has pledged to deliver uninterrupted power through alternative energy.

    “Nigerian National Petroleum Corporation (NNPC), the National Science, Technology and Infrastructure (NASENI) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have given endorsement to be partners in the event.”

    Fagbemi said by leading the way in planning for alternative power solutions, the state increases its power threshold and guarantees rural electrification.

    Besides, the NAEE 2012, will feature the maiden edition of Nigeria Green Awards, which would be presented in both individual and corporate categories. Winners according to the organisers will be nominated on the basis of individual and corporate commitment to eco-system initiative, resilience in the investment in clean and renewable energy sources. The organisers of the event also urged visiting delegates to take part in tour of the state during the expo to see the untapped opportunities for investment and development across the state.