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Tag: NMDPRA

  • Regulatory mess

    Regulatory mess

    • If NMDPRA accepts that we have enough supply, it should take the blame for the fuel queues

    It is amazing that we should experience long queues in fuel stations across the country. This has been the case in the past few weeks, subjecting Nigerians in all walks of life to the tardy regime of frustrated day.

    The last time we suffered it was during the 2023 election season when it was weaponised by the forces of government against palpable foes on the other camp. Now that we are in the throes of governance, fuel scarcity and its woes have sprung up on us. Few expected it.

    It was believed that long lines at fuel stations would be the last thing to expect in this new season of the removal of fuel subsidies with its implications for deregulation along all the tiers of fuel management.

    The Nigerian National Petroleum Company Limited (NNPCL) reported that it had a logistic issue and that it had been resolved. This was consequent upon a vessel that had a movement problem, and so it created a lag in the supply chain. Nonetheless, as at April 28, the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) stock report had it that 1.547 billion litres had been released to the country. That volume was enough to sustain demand for 30 days.

    Read Also: IPMAN appeals against delisting by NMDPRA, NNPCL

    Yet, over a week after, the queues are still biting, and Nigerians are left to wonder why they have to suffer if they had such a plenitude of fuel in the market. If the supplier claims it has supplied and the regulatory authority, that is the NMDPRA, confirmed its report, it means there is a gap in communication between the regulatory authority and the motorist.

    The NNPCL is a major supplier, but it is not the only one. It works in tandem with the NMDPRA. If both of them agree on supply, the problem therefore lies in what the downstream distributors are doing with the supplies. The industry view, especially from the NNPCL perspective, is that arbitrage has taken over.

    Unscrupulous marketers are believed to be gaming the system by taking advantage of the initial lag in supply to foment artificial scarcity. It is obvious that the parallel market is booming with desperate motorists buying fuel at higher costs.

    The consequence is more inflation in a country at odds with prices after the removal of subsidies and the collapsing of the two windows of currency exchange rates. Adding new costs is asking too much of our citizens. For anyone in the name of new profits to exploit the situation is callous. This should not be if a proper enforcement and monitoring is in effect. That is why we call on the chief executive officer of the NMDPRA, Farouk Ahmed, to take charge of the situation and stop Nigerians who are exploiting the miseries of fellow citizens from thriving in evil.

    There have been reports of fuel stations surreptitiously opening their stations to customers who were ready to pay higher prices. The NMDPRA has the constitutional powers, infrastructure and reach to fish out the culprits. We therefore call on Ahmed to rise to his responsibility to the country and deploy staff and law to identify those who would not sell unless they profiteer. They should be exposed and prosecuted for economic crimes.

    It is a case of riches without happiness if we have as much as 30 days supply. It should embarrass the NMDPRA boss that we should be groaning amidst a profusion of supply.

    The long lines must not be allowed to linger for long. An economy in need of infusion of confidence does not need an encumbrance

  • NMDPRA to issue oil refining licence to Dangote

    NMDPRA to issue oil refining licence to Dangote

    The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday said  sooner or later it would commission the 650,000b/d Dangote Petroleum Refinery fully.

    Besides, the Authority said it will also issue a licence to the refinery to operate very soon.

    NMDPRA, Chief Executive, Engr. Farouk Ahmed, made this known in Abuja during the “Stakeholders’ Consultation Forum on Midstream and Petroleum Host Community Development Trust Regulations.”

    Executive Director, Distribution Systems Storage Retailing Infrastructure, Ogbugo Ukoha, who represented him, noted that only three refineries have three valid licences.

    “We have issue three refineries with three valid licences. We awarded to Dangote Refinery even in their pre- commissioning and sooner than later they will have full commission and a valid license to also operate,” he said.

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    Ahmed also noted that about 15 gas facilities have valid licences while more were undergoing processing.

    According to him, there are 1,199 facilities with valid licences in the downstream.

    He also said there are more than 176 operators, who hold gas import permits.

    The Authority Chief Executive also noted that there are 130 depots with valid licences while 69 hold valid coastal vessels licences.

    In terms of retail, Ahmed said NMDPRA has licensed 9,464 retail outlets as at 10:00am yesterday.

    His words: “In the gas processing facility, within the midstream, there are about 15 of them with valid licenses. And much are under processing.

    “If you go to the downstream, in the gas state of the downstream, there are facilities more that 1,199 facilities are with NMDPRA valid licences. More than 176 operators hold gas import permits. In the liquid licensing side of the downstream, there are 130 depots with valid licenses, coastal vessels of more than 69 valid licenses as at today.”

    “And in the retail outlets, we have 9,464 licensed retail outlets as at 10:00am today 30th April.”

    On the essence of including midstream and downstream as part of the  Host Community, he noted that emissions and effluence affect them.

    Driving home his point, he imagined the emissions from the Dangote Petroleum Refinery and the Nigerian Liquefied Natural Gas (NLNG).

    He explained that he rolled out the data on the midstream and downstream for the stakeholders to appreciate their spread.

    He urged the stakeholders to which facility should come under the Host Community and the criteria in order to infuse it into the regulation.

    According to him, the Authority organized the forum for the stakeholders to ventilate their ideas.

    In his goodwill message, the House Committee on Host Community, Chairman, Hon. Dumnamene Robinson Dekor, vowed that any industry player that is found wanting in the implementation of the regulation has to bear the legal consequences.

    He said, “Any player found wanting will be made to face the full consequences of the law.”

    He urged the forum to consider the objectives that should give sense of ownership to the Host Community dwellers.

    He advised that the repeal should also strengthen the relationship among to the companies, government and the communities.

    The chairman said, “As we review the draft regulation, the objectives which includes the need to transmit sense of ownership and inclusion to the people who live in and around the house communities.

    “There is the essential need to repeal and strengthen the trust between the companies and the community and between the community and the government.”

  • NMDPRA confirms ongoing actions to reduce cooking gas price

    NMDPRA confirms ongoing actions to reduce cooking gas price

    The Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) yesterday confirmed that there are ongoing actions to create the enabling environment to boost the supply and consequently reduce the price of Liquefied Petroleum Gas (LPG) also known as cooking gas.

    Speaking as a panelist at the 7th Nigerian International Energy Summit (NIES) in Abuja yesterday, the NMDPRA, Executive Director, Distribution Systems, Storage & Retailing Infrastructure, Mr. Ogbugo Ukoha, revealed that the minister of power, Chief Adebayo Adelabu, is working with the Authority to attain gas price cut. He spoke on “Gas Policy, Regulation, and Sustainable Solutions in LNG, AUTOGAS, LPG, CNG, and Gas-to-Power.”

    “The Minister and the Authority are working towards creating an enabling environment for much domestication of gas because with an increased supply we hope to see downward trend on the price of LPG,” he said.

    NMDPRA is working with the Standard Organization of Nigeria and the Council of Automotive Development to look into standard and engineering level of the conversion for the Compressed Natural Gas (CNG).

     According to him, the Authority is also considering the availability and affordability of gas cylinders.

    He added that “We have granted a number of licenses to a number of cylinder producers within the FCT in particular, there are about two major producers who will be coming on stream very soon. We are hoping that all these will drag down the space.”

    On CNG, he recalled that President Bola Tinubu’s administration came up with a fresh impetus on how to ramp up utilization of gas and price, especially as alternative to Premium Motor Spirit and Automotive Gas Oil), diesel that the prices are rising.

    The Executive Director said the NMDPRA has met with some operators that have plans for modern CNG stations.

    He added that “We have dedicated engineering team working with them showing the regulatory steps to make sure all these things are achieved at the earliest opportunity.”  

    Ukoha said were the minister in the panel he would have confirmed the NMDPRA efforts in the LPG space.

    According to him, the local production of the LPG surpasses the domestic needs but even as the demands of the domestic market are yet to be met, the producers are still exporting the product.

    “There are other things we are working with stakeholders to see. If the Minister was here, he will acknowledge our efforts in the LPG space.

    “ We continue to produce locally much more than we consume domestically. And we have operators, a number of them still exporting  while domestic demands are not yet met,” he said.

    Meanwhile, the Shell Group Chairman, Mr. Osagie Okunbo, identified security issues, which has been accountable for incessant production shutdown as the bane of the gas industry.

    He said “The security issues around it became so bad that we had to shut down that line for the year. That was the lowest of the lows.”

    He noted that however, there has been improvement in production as the company recorded its highest supplied volume of gas in January first time in the last three years.

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    He noted that in the last 12 months, the authority has worked to strengthen the capacity of the Decade of Gas (DoG) and being the primary platform for bringing stakeholders in the gas industry together and also to drive the country’s transition within the fuel supply space.

     The authority, said Ukoha, continues to headquarter the DoG and provide all the resources the needed on ground to meet the objectives.

    According to him,  “Secondly, during these last 12 months, the authority has deployed its greatest tool, which is its licensing regime to see that much optimization is done within the market.

    “ In that period, we have granted licenses to the gas aggregation company, and licensing for gas trading as well.

    “And we are in the process of completing our initial due diligence for the gas distribution license, which promises to be the last man, major game changer within the country.

  • NARTO notifies NMDPRA, DSS, MEMAN on withdrawal of operations today

    NARTO notifies NMDPRA, DSS, MEMAN on withdrawal of operations today

    • IPMAN to meet transport union

    The Nigerian Association of Road Transport Owners (NARTO) has notified the Department of State Services (DSS), the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), and the Major Energy Marketers Association of Nigeria (MEMAN) on its plan to suspend operations today.

    The Nation learnt that the union’s notice was contained in a document, titled: “Notice of withdrawal of operations,” which our correspondent sighted yesterday in Abuja.

    NARTO National President Yusuf Lawal Othman, who signed the letter, premised the suspension of operation on operational cost in the industry.

    He said: “We are deeply constrained to seek the support and understanding of your union and members towards the excruciating challenges petroleum trucks owners are facing with the high operational costs in the industry.”

    Othman said the association had made several efforts to negotiate appropriate freight rates with the MEMAN to no avail.

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    The NARTO national president explained that the union’s National Executive Council (NEC) had directed members to park their trucks.

    He said: “As you are already aware of several efforts we have made to secure negotiations for appropriate and commensurate freight rates for our operations from all conceivable authorities concerned in the industry, most especially the Major Energy Marketers Association of Nigeria but which have received no positive responses from them, we have no other options but to write to inform you that the NARTO NEC has resolved to direct all our members not to make their petroleum trucks available for petroleum products loading activities with effect from Monday, February 19, 2024.”

    Othman added: “In the light of this directive, we implore all our employees (petroleum truck drivers), who are your members, to show maximum cooperation, support and understanding to our collective efforts for continued sustainability of the petroleum haulage business and effective service delivery by ensuring adequate and immediate compliance.

    “There is definitely no way we can continue in this business within the context of the current economic situation in the country.”

    Also, in a bid to stop the looming scarcity of the Premium Motor Spirit (PMS), or petrol, the Independent Petroleum Marketers of Nigeria (IPMAN) has promised to meet today with the NARTO.

    IPMAN National President Abubakar Maigandi announced this while speaking on phone with The Nation yesterday.

    The union leader said the Federal Government had not invited the members on the issue.

    He said: “If they (NARTO) stops loading, we will not be able to load. That is the problem.

    “Tomorrow (Monday), we are going to reach out to them to discuss. We will hold a meeting with them. May be tomorrow the Federal Government will invite the stakeholders.”

    The Chief Communication Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Olufemi Soneye, who The Nation asked what the company was doing to avert the situation, simply said: “I will call you.”

    But he did return the call yesterday.

  • NMDPRA, firm sign MoU for CNG infrastructure development

    NMDPRA, firm sign MoU for CNG infrastructure development

    The Midstream and Downstream Gas Infrastructure Fund (MDGIF), which operates under the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has signed a MoU with IBILE Oil and Gas Corporation.

    The purpose of this agreement is to develop infrastructure for Compressed Natural Gas (CNG).

    The Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo, addressed reporters at a signing ceremony in Abuja.

    Ekpo noted that the removal of the PMS petrol subsidy has made it necessary to establish a MoU for an alternative fuel.

    He said: “It is an important moment in the history of this ministry and today, I have witnessed the signing of a MoU between the NMDPRA with IBILE Oil and Gas Company.

    “This will help them to develop the infrastructure for CNG. And of course, with the withdrawal of subsidy, the alternative means now is natural gas.

    “So what they are coming in to do and the essence of this agreement or MoU is to fastrack the penetration of natural gas in the form of CNG to drive the transport sector.”

    Asked when the agreement would become effective, he said it took immediate effect.

    He however put a caveat to it that the parties to the pact will perfect everything, expressing optimism that it will they will not delay the project.

    Ekpo said: “We have started everything today. It is left for the party concerned to perfect everything and I don’t think it will take a longer time.”

    Read Also: NMDPRA grants firm approval for 500MT LPG depot in Gwagwalada

    He said it was the importance of the agreement that compelled him to return from Port Harcourt, where he went for the event of the completion of the Port Harcourt Refinery yesterday.

    He vowed to ensure that he drives the parties to keep to the schedule in the agreement because Nigerians are eager to see an alternative fuel to petrol.

    The minister said: “You can see the importance of this meeting while we are having it today, I was in Port Harcourt, I had to drive in and the MD decided to stay behind.

    “All the persons, the Authority Chiefs stayed behind to make sure that this thing happened today. So I want to make sure they will key into the speed we are doing it today. The importance of this event is to make sure they finish it on schedule. Nigerians are waiting for this.”

    Meanwhile, MDGIF, Executive Director, Malam Mansur Kuliya, said the agreement aligned with the mandate to provide incentives for CNG.

    He noted that aside from having the duty to support President Bola Tinubu’s agenda, the fund has the mandate to deepen the domestic gas market.

    According to him, the agreement was an indication of similar projects that are underway.

    Kuliya said: “I am very excited and this is just in line with the incentive for CNG.

    “We have a duty to support Mr President’s agenda and the mandate to ensure we deepen the domestic market. This is what we are doing and more and more are to come in the near future.”

    Speaking, the Ibile Oil & Gas Corporation, Managing Director, Ms Doyin Akinyanju, noted that that the firm is fully prepared to hit the ground running with the signing of the agreement.

    The Chief Executive Officer said apart from reducing the cost of transportation, the agreement will culminate in the reduction of the carbon footprint.

    She revealed that the Lagos State Governor is very keen that the project will commence between now and the first quarter of 2024.

    She said it will take off with government-owned fleets before extending the services to commuters.

    Akinyanju said: “It is for the government fleets as well as commuter buses so that the commuter buses people can actually be driving and moving around at lower cost,” she said.

    “We are rolling out mobile stations so that very quickly people can drive into stations and fill up from there.”

    According to her, the project will start with the target of fast-tracking gas for transport and power in Lagos State.

    She revealed that the company is partnering with international technical partners who are the manufacturers of the kits.

    She further revealed that the firm has also partnered with stations in terms of conversion of the vehicles.   

  • NMDPRA grants firm approval for 500MT LPG depot in Gwagwalada

    NMDPRA grants firm approval for 500MT LPG depot in Gwagwalada

    The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) yesterday granted approval to Noretek Energy Ltd  to construct a 500 metric ton (MT) Liquefied Natural Gas depot in Gwagwalada, Abuja.

    Addressing reporters at the ceremony in Abuja, the Authority Chief Executive Officer, Engr. Farouk Ahmed, said aside increasing domestic gas supply to the Federal Capital Territory (FCT),  the depot will boost gas supply to the entire country.

    The Executive Director, Distribution Systems Storage and Retailing Infrastructure, Mr. Ogbugo Ukoha, who represented him, said the depot will create employment and rake in revenue for the Federal Government.

    He said, “Secondly,  as you can imagine, this will provide employment opportunities never minding revenue.

    “At 500 metric tonnes, a number of hands will be required to work in that place.”

     Ahmed explained that the Approval to Construct (ATC) which the authority granted the firm is the earliest stage of the gas depot.

    According to him, there are also financial plans of the depot the company and the NMDPRA have to undertake.

    He added that there are conditions and timelines to every approval it grants for the construction of any plant.

    His words: “With the ATC, this is the earliest stage. There are financial plans we have to do, projecting we work with them.

    ” Each permit we grant and license there are conditions to them . So there are timelines. But again, we will work with them to see that is achieved at the earliest initiative.”

     The Authority Chief Executive disclosed that there are other construction  and development of other gas depots, which are at different levels of implementation  across the country.

    According to him, the ongoing gas depot in Apapa Lagos is scheduled for commissioning either in Q4 2023 or Q1 2024.

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    He added that some operators in the industry are also  constructing massive gas depots in Port Harcourt and Idu, Abuja.

    Ahmed said, “In Apapa, there is a big one. We are looking forward to commissioning it either Q4 this year or Q1 next next year.

    ” In Port Harcourt,  there is a big one as well. Even in Abuja here, at Idu, the same operator that is at Port Harcourt is also doing something big one in Idu in Abuja here.”

    According to him, within the value chain, there are several derivatives that are used for different purposes.

    He said, “But today, we are celebrating Noretec and this is 500MT.

    “Within the gas value chain,  there are many derivatives: LNG,  LPG, CNG, propane, brutane. And it is in our best interest to have a full grasps on all these derivatives. “Some can be deployed immediately for autogas.  Some will do better for cooking, others will do better for powering engine. But it is better to have a full booke of this so that everybody can have options.”

    Asked about the rising global petrol prices, he said the Authority is monitoring the market trend of petrol.

    Ahmed said “Everybody is monitoring the movement of not just price but also FX.

    “Different operators will take different positions as we progress.  We are monitoring the trend.”

    Speaking, Noretek Energy Ltd, Managing Director, Edward Traore,

    noted that launching this 500-metric-ton LPG storage depot marks the first step of the proverbial 1000-mile journey.

    He added “We at Noretek Energy have a comprehensive project

    agenda.

    ” This initial installation lays the foundation for our planned expansion of LPG Autogas services and infrastructure across the region as a central element of our

    long-term objectives.

    “Autogas is a key component of our investment plan, and

    presents a viable, eco-friendly alternative to traditional fuels, providing both economic and environmental benefits.”

    He revealed the company was already projecting its investment into the future.

    “We’re not simply investors in projects; we’re investors in the future.”

    Ahmed disclosed that the company’s  plans include rolling out LPG reticulation services to residential and commercial estates.

    He said, “the depot we establish today is strategically positioned to guarantee a reliable supply chain, ensuring that clean, affordable energy reaches the  doorsteps of homes and businesses safely.”