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Tag: NGC

  • Nigeria Gas Company commences repairs on damaged pipeline in Delta

    Nigeria Gas Company commences repairs on damaged pipeline in Delta

    The Nigerian Gas Company ( NGC ) on Tuesday said it had commenced the process of fixing the exploded gas pipeline at Ugbokodo-Okpe community in Okpe Local Government Area of Delta.

    Mr Kingsley Onaipia, an official of NANPIST Venture, the company clearing the affected area for proper assessment and evaluation of the damaged pipeline disclosed this to newsmen at the site.

    He said the indigenous firm was hired by NGC to clear the area before the commencement of repairs on the pipeline.

    The NGC gas pipeline exploded on January 11, at about 4:00 a.m.

    Swamp boogies and others have already commenced work at the site.

    “We are on site at the instance of NGC, to enable the management ascertain the extent of damage of the gas pipeline.

    “We have commenced evacuation and as soon as we conclude, proper repairs will commence immediately by the company’s management,’’ he said.

    An, official of the NGC, who craved anonymity also confirmed the development to newsmen.

    “We want to effect repairs on the damaged pipeline as soon as possible,’’ the official said.

    Read also: Gas pipeline explosion sends panic round Delta community

    Reacting, the Spokesman of Ugbokodo-Okpe community, Mr Tobore Ajidsha, commended NGC for its quick response.

    Ajidsha, however, expressed  dissatisfaction with the process, noting that the community was not consulted before mobilising the contractor to site.

    He also said there was another damaged gas pipeline about 200 meters away from the residential area in Ugbokodo-Okpe community and urged the NGC to quickly effect repairs before it caused another disaster.

    “NGC has come to see us, they promised to come back after they have ascertained the extent of the damage.

    “But we are not satisfied with the step taken so far because they did not tell us before mobilising to site.

    “Although, no life was lost in the incident, the extent of damage was massive with thick flame that consumed fishing nets, boats and other items in the creek,’’ he said.

    The community spokesman, however, said there was the need to compensate the people for the damage, assuring NGC of a peaceful atmosphere for negotiation.

    NAN

  • Why gas supply is low, by NGC

    • Nigeria loses N2.5b to pipeline vandalism in six months

    The Nigerian Gas Company Limited (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), has listed factors that militate against the development, supply and monetisation of the huge gas resource in the country.

    Its Managing Director, Mr. Dafe Sejebor, said these issues are reasons expectations on supply are not being met.

    He said huge volume of gas meant for the domestic market is lost from the time of vandalism to detection,  about 150 million standard cubic feet per day (MMscf/d).

    He noted that the huge amount is also spent on repairs of the vandalised pipes,  adding that about N2.5 billion was spent on pipeline repairs between January  and June, this year.

    He also said the reluctance of upstream oil and gas companies to invest in domestic gas production as well as uneconomical gas-to-power price framework is stalling growth of the gas industry.

    He said the inadequate funds for infrastructure development and limited appetite of Nigerian banks to invest in long to mid-term projects as well as host community issues, work against the industry’s growth.

    Sejebor, however, said the government was working to address the issues. He said the gas sector reforms are underpinned by a set of enabling policies that are being implemented to jumpstart the gas industry agenda.

    Among the policies being implemented include scalable infrastructure, gas pricing regime to sustain supply growth in the long term and world class and bankable gas supply and purchase agreement (GSPA) and the gas network code while transmission tariff is pegged at a minimum of $0.80 MMscf to justify investments on gas infrastructure.

    He noted that the World Bank Partial Risk Guarantee is also mitigating against non-payment for gas sold adding that investors have been assembled for the Central Processing Facilities (CPF) ) for Western CPF and final investment decision (FID) is expected to be taken in 2016.

    To further boost gas development, the NGC chief said the company is in discussion with current gas producers in the country to boost output. The gas producers include the international oil companies (IOCs) such as Chevron and Shell, and indigenous companies such as Nigerian Petroleum Development Company (NPDC), Pan Ocean and Seplat as well as potential gas producers for more gas production especially from their non associated gas (NAG) assets. The potential producers include ND Western Oil, Seven Energy, Owel Linkso, and Sunlink, among others.

     

    He stated that it is imperative to for indigenous firms to participate in gas infrastructural development because they have come of age. “Indigenous companies have come of age and are competing favourably with their foreign counterparts. They are now taking control of lucrative pipeline construction projects and are creating employment opportunities. The engagement of several Nigerians as skilled and unskilled staff has helped to reduce the restiveness in the Niger Delta and also reduce the rate of unemployment in Nigeria as a whole.

    “In view of the need to ensure that indigenous contractors have access to funds to execute its projects, Shell/NNPC Joint Venture entered into an understanding with a selected group of Nigerian banks in 2012, while the Central Bank of Nigeria (CBN), in a recent statement indicated that increased activities by indigenous companies contributed to the appreciation of the Naira against the Dollar and other currencies,” he added.

     

  • BUA, NGC sign gas deal

    BUA, NGC sign gas deal

    A cement manufacturing firm, BUA Cement, has signed a Gas Sales and Purchase Agreement (GSPA) with the Nigerian Gas Company (NGC) for its Edo Cement Company Limited.

    NGC Managing Director, Saidu Mohammed,who signed for his firm, said the agreement is for the supply of about 33 million standard cubic feet of gas daily (mmscf/d) by NGC to the plant in Okpella in Edo State.

    Group Executive Director, BUA Group, Kabiru Rabiu, who signed for BUA Cement, described the deal as an important milestone towards the commissioning of the new cement plant at the end of the year.

    Rabiu said $500 million has been spent on the plant ading that on completion, it will add about 15 per cent to the total cement output in the country.

    Nigeria produced about 21 million metric tons of cement in 2013 and with its population of 170 million people making the country one of the lowest per capita cement consumption in the world.

    BUA Group entered the cement sub sector in 2008 when the Federal Government of Nigeria issued out licenses to 13 companies, including BUA, to import cement in an effort to reduce the price of the product locally.

  • Dangote, NGC to invest $20m on fuel conversion

    Borkir International Gas and Energy Company, a subsidiary of Dangote Group and Nigerian Gas Company (NGC) is to invest $20 million on the purchase and sale of gas and conversion of fuel vehicles to Compressed-Natural-Gas(CNG).

    The two companies have signed a Memorandum of Understanding (MoU).

    The 20-year contract agreement is to harness natural resources, such as gas, locally and effectively and to provide the country with a chit that can convert fuel vehicles into gasoline vehicles at an affordable price.

    Speaking to reporters in Lagos, the Chairman, Borkir International Gas and Energy Company, Sanni Dangote, said the company plans to have eight stations.

    He said two stations are on ground and the others would be ready in the next five months.

    “The company expects to spend close to $100 million in the next couple of years to cover all the major highways and major cities in Nigeria.

    “People’s perception could be a challenge. They may be considering whether or not it is economical to convert into CNG or how reliable it will be as well as the availability of the gas in different stations.

    “But the truth is that everybody knows that gas is a cleaner energy.

    “And for availability and reliability, we decided to invest into the initiative to make the gas available at a fixed price based on price contract.

    “We have opened conversion centres on major roads and highways where vehicle owners can diagnose their engines and other parts of their vehicle before conversion.

    “We have got 5,000 trucks signed into our contract and this gives us the platform to demonstrate that this project will survive.”

    Unlike the price fluctuation of PMS, Dangote reiterated that the advantage of gas is that there won’t be any price fluctuation since it is a product that is based on price contract.

    “The price contract can be guaranteed for a long period, either for six months or one year.

    “Another advantage of the chit we are introducing is that it is optional.

    “If you run out of gas, you can run on diesel at a full range. Vehicle owners are not restricted.

    “Also, a one year warranty of performance will be given to every converted vehicle,” he said.

    The NGC Managing Director, Saidu Mohammed, said the agreement is to harness gas locally.

    He said the NGC, which operates over a 1,500-kilometre network and various stations has been propagating the use of gas.