The Nation Newspaper

Tag: Nipco

  • Workers kick as firm plans tank farm for ports

    Workers kick as firm plans tank farm for ports

    Nigerian Ports Authority (NPA) workers are kicking over the planned building of a tank farm and pipeline by the Nigerian Independent Petroleum Company (NIPCO) across the NPA dockyard and waterfront in Apapa.

    President of Senior Staff Association of Communications, Transport and Corporations (SSACTAC) Comrade Omeiza Umar told reporters in Lagos that for safety reason the project should not be allowed.

    He said if the project is allowed, it would cost the government a lot in revenue, block entry and exit from the Apapa dockyard, subject facilities to explosion and pose serious threat to lives and properties.

    The Apapa dockyard, he said, had only one entry/exit point, with a pipeline laid by NIPCO. Establishing another pipeline along the quay apron is an invitation to disaster because the only available escape route in case of emergency would have been blocked by the same NIPCO, he said.

    He said: “If NIPCO is allowed to go ahead with its obnoxious intention, the navigational channel of about 1.5km will be blocked and any attempt to check vessels and NPA tug boats shall lead to collision with the pipe and there will be explosion, fire and spillage of product.

    “There exists a pilotage district within Lagos ports. The Joint Venture Company (JVC) handling the pilotage of Lagos district is located at the dockyard where tug boats and dredgers are berthed. The JVC called Continental Shipyard Limited (CSL), repairs ship and vessels of NPA and other third party jobs. This company repairs the tug boats, dredgers and pilot cutters of NPA with priority preference and at half the cost as compared with charges of similar companies such as Nigerdock.”

    Besides, he noted that there also exists a dolphin that anchored the floating dock of NPA awaiting repairs to class. This has cost NPA some fortune. We don’t have another dolphin to anchor the floating dock and we cannot afford to give away the existing one for mere piping of petroleum products to NIPCO jetty because without NIPCO Nigerians will not lack products, he added.

    He also explained that NPA has dredged the waterways and channels of Lagos pilotage district to make them navigable, which cost the government a huge amount of money. This was done for maritime operations and not for NIPCO tank farm and pipeline. Also the port reform that is yielding result would be reversed in the Lagos pilotage district by the unwarranted exercise of NIPCO as congestion at the port will return in an unimaginable level, he added.

    Umar said: “The ports of Nigeria are neither petroleum ports nor tank farm ports; however, there exists jetties for oil terminals. We advise NIPCO to look for virgin area (green field) like Oando did at Takwa Bay and established its tank farms there, for instance, Ogogoro village or Snake Island.

    He said the government should make it a point of duty for investors to invest genuinely not to struggle for existing structures that are of great importance to the economy such as dockyard of Apapa. We members of SSACTAC, will not fold our arms and allow corrupt government officials collude with NIPCO to short-change Nigerians and sabotage government’s efforts at developing the maritime sector.

    Reacting, a NIPCO source told The Nation in confidence that the workers were being mischievous, saying the company was not planning to build any tank-farm or pipeline. The source said what the company intended to do, is to build a jetty where ships bringing products to it would berth to discharge. The source explained that the group was there when the company conducted public hearing on the issue, advertised it in major national newspapers and electronic media and other requisite requirements and didn’t complain.

  • Nipco, others to participate in downstream expo

    Nipco, others to participate in downstream expo

    Nipco Plc, Conoil Plc, among other marketers, have agreed to participate at the seventh edition of Oil Trading and Logistics Africa Downstream Expo in Lagos this thursday. The programme will host key players in the industry in Nigeria and beyond.

    Nipco, in a statement, said the exhibition has become one of the Africa’s prominent forum for trade, knowledge and networking in the region’s downstream petroleum market.

    The company said the forum would be used to promote its products across value chain, as well as unfolding its marketing strategies for growth.

    ‘’ The exhibition will help us in promoting our on-going plans to make petroleum products gets to the consumer doorsteps through the acquisition of retail outlets in strategic locations across the country in two separate schemes. The schemes are: Dealer Owned-Dealer Operated (DODO) which are on long lease and the Company Owned-Dealer Operated (CODO) which is an outright lease. In all the schemes, concerted efforts are being made to ensure that the company’s stations operate in conformity with industry standards and sophistication,’’

    The company said it has a joint venture project with Nigerian Gas Company (NGC) to promote the use of Compressed Natural Gas (CNG) as a vehicular fuel. The scheme, it said, has attracted thousands of auto users in Benin, among other cities in the country.

  • ‘Deregulation’ll ensure safety in downstream’

    Operations in the downstream petroleum sector will be safer if it is deregulated, the Managing Director, NIPCO Plc Mr

    Venkataraman Venkatapathy, has said.

    Speaking during a two-day training with the theme: ‘Safety and security challenges in the downstream sector,’ Venkatapathy said it has become necessary to train the workers in line with the oil and gas industry local content development Act, 2010, which harps on effective harnessing of indigenous capacity.

    Represented by the firm’s Assistant General Manager, Human Resources/Administration, Mr Magaji Mohammed, Venkataramad said the development became necessary to enable the staff to operate effectively in a truly competitive business environment, adding that Nipco will continue to develop its workforce in line with the Nigeria Content Development Management Board (NCDMB) guidelines.

    He said the programme is designed to create awareness for participants on contemporary issues in safety and security management in downstream operations.

    According to him, the company has put in place a robust performance framework to ensure that the staff are supported to deliver higher levels of Key Performance Indicators (KPIs)

    “The loss in the downstream sector could take different forms with an all encompassing effect on every facet of operations anytime it happens, thus making it imperative for an enduring loss control strategies. We are convinced that our investment in training and human capital development will translate into greater productivity higher performance and impact positively on the overall operations of the company,” he added.

  • Lagos LPG to get supply from NLNG, NIPCO

    The Lagos State liquefied petroleum gas (LPG) known as ‘Eko Gas’, which is being run in partnership with private sector operators, will get supply from the Nigeria Liquefied Natural Gas Limited (NLNG), it was learnt.

    This is to guard against supply of substandard LPG also called cooking gas, to consumers.

    Chairman, LPG group of Lagos Chamber of Commerce and Industry (LCCI), a partner in the project, Omo’ ba Bambo Ademiluyi, said all safety measures had been taken into consideration. He spoke against the backdrop of the alleged substandard LPG in circulation and explained that the partnership was aware of supply of high propane content LPG, which is dangerous considering the obsolete and substandard gas cylinders in the system.

    He explained that even though the LPG (cooking gas) with high propane content is mostly distributed in the North because it is supplied from Niger Republic, the safety measures factored into the Eko Gas project is tight.

    He said all the LPG that would be supplied to Eko Gas would come from NIPCO and Nafgas facilities. The two firms get their supply only from the NLNG. “Therefore, the issue of supply of product with high propane content will not arise,” he added.

    He noted that the companies that would supply the cylinders will be member-firms of the chamber to ensure that the integrity of the cylinders is guaranteed.

    Ademiluyi said: “We are mindful of the LPG in circulation, and the utensils that are being used to take LPG from the filling plants to the homes. We are aware and also Standard Organisation of Nigeria (SON) and the Department of Petroleum Resources (DPR). We are all aware that a lot of these cylinders are very old and a lot of the new ones are substandard. However, for this scheme, the people that will be supplying all the cylinders, utensils, and skid plants, among others, are members of LCCI, their companies will not cut corners. They are all registered with the DPR, they have certification for their imports and we don’t expect anything untoward.

    “As regards high propane content LPG, it is predominantly circulated in the north, because it comes from Niger Republic. The two plants where we will be taking LPG from for this key project are NIPCO and Nafgas. Those two facilities don’t take LPG from anywhere except NLNG. Therefore, the integrity of this scheme is tight. One of the key things taken into consideration is safety because a single explosion of cylinder can bring the scheme down.

    “We have also designed an elaborate awareness creation programme for the scheme to educate people on the need to convert to use of LPG.”

    Lagos State Commissioner for Energy and Mineral Resources Taofeeq Tijani, said Eko Gas project, which was rolled out last week is approved by the Executive Council (Exco).

    He said: “The chief executive of the state is backing the initiative because the product is efficient, safe, support the environment and will be a benefit to the people.

    “The Ministry of Energy and Mineral Resources has got approval from the governor and executive council of Lagos State to adopt LPG as the fuel of choice for Lagosians. Having got the approval, we have worked with all stakeholders particularly the LPG Group of LCCI, those involved in LPG cylinders and products marketing. We have worked out the formula on how we will inform Lagosians on how we will distribute affordable cylinders and all the places the products can be obtained.

    “LPG skid tanks will be built in strategic locations for easy access of the product by consumers. The product will be launched in Surulere today. It is an opportunity for Lagosians to convert from use of kerosene, charcoal, and firewood to a cheaper, safer, cleaner and more reliable fuel.

    “Why we embarked on the initiative is because LPG is used worldwide as fuel and Nigeria produces the product in large quantities and most of our refineries have LPG as a by-product. International oil companies particularly NLNG and ExxonMobil, among others produce it. NLNG dedicated 150,000 metric tonnes to be used in Nigeria but as I speak, Nigeria is the largest supplier and lowest consumer of the product in Africa. The 150,000MT is still available and Nigerians are yet to consume up to that volume.

    “Therefore, part of this initiative is to work with all stakeholders to fully utilise consumption of this volume and more. We are also looking at companies that have built storage tanks in Lagos, NIPCO 4,000MT, Nafgas 8,000MT, Pipeline and Products Marketing Company (PPMC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) 4000MT. These storage facilities will help us move the products from where it is produced to demand centres in Nigeria.”

  • Using Cooking Gas will reduce poverty, hunger in Nigeria

    A downstream oil sector company, the Nigerian Independent Petroleum Company (NIPCO) Plc., has said that greater utilisation of cooking gas locally would  reduce poverty and hunger in the country.

    This was contained in a statement issued and signed by Alhaji Lawal Taofeeq, Head, Corporate Affairs and Communications of NIPCO, and made available to newsmen on Monday in Lagos.

    “Our gas cylinders in this country are of different sizes and are to the delight of potential users which can go a long way in reducing the suffering of poor Nigerians.

    “The 12.5kg , 6kg and 3kg gas cylinders with their accessories; the gas stoves locally made here are designed with the ultimate objective of improving access to cooking gas to the populace,“ he said.

    He said that NIPCO’s vision was to provide “a more pocket friendly cylinder“ and gas stove that could be affordable, especially to those in the low income bracket and petty traders.

  • Nipco eyes upstream operation

    Determined to be an integrated oil and gas company, Nipco Plc is set to make its debut in the upstream sector as part of diversification of its business.

    Its Chairman, Chief Bestman Anekwe, said this at the firm’s annual general meeting held at the Transcorp Hotel, Abuja.

    He said a subsidiary outfit, Nipco Upstream Limited, has been established with a mandate to actualise the objective, adding that with the coming on stream of the subsidiary, the management is poised to ensure that the new company becomes a success story in the upstream sector like its parent company, which is fast becoming a household name in the downstream sector.

    Chief Anekwe recalled that the parent company floated by indigenous fuel marketers under the aegis of Independent Petroleum Marketers Association of Nigeria (IPMAN) and a core investor – Purebond Limited UK – has made inroad in the downstream sector and is poised to replicate such in the upstream segment.

    He said: “We have already carved a niche for ourselves in the downstream sector and our future has become brighter than ever before in the light of our enhanced relationship with several government agencies in the country,” adding tha the board is committed to building a formidable integrated oil and gas company that will complement the energy reforms of the government to deliver greater value to both customers and shareholders.

    Reflecting on the performance of the company last year, Chief Anekwe said the organisation was able to make a lot of inroads into the liquefied petroleum gas (LPG) market through enhancement of its distribution network, as well as in the provision of cylinders and other gas accessories at pocket-friendly rates.

    On the compressed natural gas (CNG) project which is a joint venture scheme with Nigeria Gas Company (NGC) incorporated as Green Gas Limited (GGL), he explained the project has gained tremendous momentum with more and more vehicles as well as tricycles switching over to gas in the city of Benin, Edo State.

    Chief Anekwe said with about eight CNG stations completed in Benin to facilitate easy access to gas as auto fuel, GGL is constructing more outlets and conversion workshops in Ogun and Ondo states which are expected to be completed this year.

    He told the shareholders that as part of the company’s expansion scheme, a lubricant unit was set up to boost operations last year and it is expected to mature and blossom in the years ahead.

  • Nipco rewards loyal marketers

    Nipco Plc, an integrated downstream operator, appreciated its customers for their patronage and delivering quality service, particularly in the dispensing of petroleum products to Nigerians in all parts of the country.

    The event, which held at the company’s terminal in Lagos, was to recognise and honour outstanding marketers in which the overall best marketer for last year, went to Tamal Petroleum Nigeria Limited, based in Katsina State.

    The Managing Director of the company, Alhaji Muhammadu Usman Sarki, received the award on behalf of the company. He expressed appreciation for the honour and pledged to consolidate on the company’s business relationship with Nipco by pulling more volumes this year.

    Presenting the award to the recipient on behalf of Nipco, the Executive Director, Finance, Mr Ramesh Virwani, said the award was in recognition of the outstanding performance of the marketing company in the distribution of petroleum products to end-users through its outlets.

    Virwani assured the marketing companies doing business with Nipco of its excellent service delivery, which he added, is beneficial to both parties and in the interest of the sector.

     

     

     

     

     

     

     

  • NIPCO moves to check sharp practices in filling stations

    To ensure that customers get value for their money for purchases at the retail outlets, the management of NIPCO has created a unit in the company that will oversee activities at its filling station across the country.

    Managing Director of the company,Mr Venkataraman Venkatapathy, who spoke with reporters, said the essence of the unit is ensure that no sharp practice is carried out in any of its filling stations.

    He said: “A department was set up in October last year to monitor activities at the stations, ensure that calibrations are properly done and right pump price and right practices always maintained.”

    Venkatapathy, who spoke on other activities of the company slated for this year, confirmed that it has not been easy for the downstream sector of the petroleum industry especially last year.

    He said: “Since the past two years, the industry has been undergoing challenges. Last year was particularly a difficult year because the industry is going through transformation and I must say that the government meant good and doesn’t have any negative intention.”

    He noted that NIPCO had been stable and stronger because it applies world best practices in its operations.

    He highlighted some of the projects the company plans to accomplish this year to include expansion of its compressed natural gas (CNG) for fuel programme. The first CNG programme approval given to the company is Benin but it has got approval to extend the programme beyond Benin.

    Venkatapathy, however, noted that the areas that should benefit from the expansion is still being kept secret and would be made known to the public in two months.

    He also said the company would increase its retail outlets this year as well as its liquefied petroleum gas (LPG) retail outlets. He said company plans to increase its LPG retail outlets from six to 20 this year, adding that it has the largest LPG retail outlets in Abuja.

    The company is also setting up LPG plants in Yola and Abeokuta and looking at setting up one in the east but the eastern plant arrangement hasn’t be concluded, the NIPCO boss said.

    NIPCO has been in the forefront of campaign for increased consumption of LPG (cooking gas) in Nigeria. Venkatapathy had at a summit held in Abuja, said his company supported the meetings and summits as part of its conscious initiative of deepening the LPG market through a well-articulated policy for the benefit of stakeholders.

     

  • Operators meet to enhance Nigeria’s LPG consumption

    Operators and other stakeholders in the gas sector of the petroleum industry met in Abuja to brainstorm on how to boost consumption of liquefied petroleum gas (LPG) also called cooking gas.

    The stakeholders, according to a statement, made efforts to fashion out strategic policies that will aid rapid growth in domestic LPG consumption in the country. The policies include forms of awareness creation on the benefit of LPG usage and best way Nigeria can rapidly develop the market.

    The meeting, which was co-sponsored by NIPCO, an indigenous downstream operator in the oil and gas, articulated a policy paper on domestic LPG usage, which would be submitted to the Federal Government for consideration in order to develop a viable and thriving LPG market.

    Managing Director, Nipco, Mr Venkataraman Venkatapathy, who spoke at the summit, said his company supported the meeting as part of its conscious initiative of deepening the LPG market through a well articulated policy for the benefit of all stakeholders.

    The company, he noted, had over the years put in place a massive 4,500 MT LPG storage facility and supported plethora of events for stakeholders to deepen the domestic gas market.

    The Managing Director recalled scores of joint sponsorships and sole campaigns undertaken by the company aimed at boosting LPG use as cooking gas and vehicular fuel, citing the LPG summit organised by the Senate, Federal Ministry of Environment auto gas fuel exhibition, Cooking gas Awareness programme organised by Lagos Chamber of Commerce and Industry (LCCI), among others.

    According to him, these initiatives are primarily to provide veritable platforms for a sustained campaign on the economic and environmental benefits of LP gas against the backdrop of the abundant gas resources in the country.

    He reiterated that Nipco is not in the LPG business as an investor alone but as a corporate entity desirous of availing the populace the benefits of using gas with the introduction of its three and six kilogramme cylinder with single burner stove.

    Venkatapathy explained that as part of the company’s conscious resolve to improve access to gas, LPG skid are being deployed to major cities across the nation using some of the company’s branded outlets.

    The skid, which is akin to a mini- gas station, he noted, offers dual purposes. He said it can be used to refill for domestic gas cylinders and refuel vehicles using LPG as auto fuel with its attendant economic and environmental benefits.

    He assured stakeholders of the company’s interest in increasing gas infrastructure in the country as epitomised in its investment running into billions of naira in the sector.

    The NIPCO chief commended the Ministry of Petroleum Resources for its vision for the sector and its assertion that LPG remains one of the veritable engines for economic growth of the nation in line with the gas master plan.

    He also commended the efforts of the leadership of the Nigerian LP Gas Association (NLPGA) for its various advocacy initiatives, which largely brought about the strategic policy discussed at the two-day conference.

    The summit was declared open by the Minister of Petroleum Resources, Mrs. Diezani Alison- Madueke and handed over 100 participants, who agreed that even though LPG use is a critical component of the gas master plan, there is still need for a policy document to harness gas resource and deepen its domestic use, especially as cooking fuel.

    Executive Secretary, Petroleum Products Pricing Regulatory Agency (PPPRA) Mr Reginald Stanley, who also facilitated the conference, urged all stakeholders to take keen interest in the policy document with a view to finalising it before the end of January 2013 preparatory to its submission to the Federal Government for approval.

  • ‘Nipco spends N17b on CNG projects’

    Nipco Plc, an integrated indigenous downstream operator, has injected over N17 billion in the provision of Compressed Natural Gas (CNG) infrastructure in a joint venture scheme with Nigeria Gas Company (NGC), a subsidiary of Nigerian National Petroleum Corporation(NNPC).

    The scheme resulted in the setting up of Green Gas Limited had inaugurated 8 CNG stations and three conversion workshops in Benin City while more outlets are under construction in other parts of the country.

    Managing Director, Nipco, Mr Venkataraman Venkatapathy, spoke at the Nigeria Gas Association(NGA) Eighth International Conference and Exhibition.

    He said over 1,500 vehicles had been configured to use CNG as vehicular fuel, which are capable of saving the nation huge a lot of money that could have been expended on fuel subsidy

    The Nipco boss explained that the GGL initiative, which is the first of its kind in West Africa, is ushering a new set of vehicles running on CNG in Nigeria with their attendant benefits.

    Venkatapathy listed other infrastructure provided by the JV Company to include the laying of over 50 km still pipelines for gas distribution to the inaugurated CNG stations Benin City to guarantee access to gas to the outlets.

    He said the conversion, which takes five hours has been very smooth since 2009 when the company inaugurated its first set of stations .

    Venkatapathy explained that after conversion the vehicle could run on petrol and natural gas, thus giving the motorist a tab switch between using CNG and petrol.

    The NIPCO helmsman said in to create more awareness on the benefits of powering vehicles with gas over petrol, GGL has showed cased CNG vehicles in exhibitions, including the NGA event to enable the public to see and experience vehicle that runs on petrol and CNG.

    He said the latest addition in the CNG revolution being undertaken by GGL is the conversion of tricycles popularly referred to as “Keke Napep” and Mass Transit buses in the fleet of Edo State government transport fleet popularly known as “Comrade Bus”.

    According to him, five Edo mass transport buses are running on CNG for the last six months while 25 more are being converted as a further boost to natural gas usage in the state and beyond.

    “The CNG initiative, which is the first of its kind in West Africa, is receiving a lot of support from both the Federal and Edo State government, a feat that is serving as good catalyst for GGL to pursue the dream with vigour and deep sense of responsibility, he noted.

    He reiterated that pioneering the project was a big challenge but the unwavering commitment of the Federal Government through the relevant agencies such as the NGC the JV partner, DPR etc have spurred them to redouble their efforts to enable the citizenry to enjoy the benefits of the environment friendly fuel.

    Group Executive Director, Gas and Power, NNPC, Dr David Ige said the GGL initiative was commendable and in line with the transformation policy of President Goodluck Jonathan, which harps on the exploration of the abundant natural gas reserves for the benefit of the people.

    “The initiative between NIPCO and Nigerian Gas Company (NGC) was to leverage Natural Gas in vehicular use as it is significantly cheap, environment friendly, safe and efficient in comparison to white products, especially in a deregulated fuel market,” he said.

    Ige maintained that over time, the 50 per cent savings enjoyed by taxi drivers whose cars run on CNG would be passed to passengers and make an average passenger in Nigeria move around at a relatively cheaper rate than they could with petrol.

    The NNPC chief assured that the government would continue to support initiatives of this nature, adding that of the three firms given the licence to pioneer CNG revolution in 2007, only NIPCO showed enough commitment.