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Tag: PMS

  • What Nigerians must know about our top grade PMS production process, by Soneye

    What Nigerians must know about our top grade PMS production process, by Soneye

    In this interview, Olufemi Soneye, Chief Corporate Communications Officer of the Nigeria National Petroleum Corporation Limited (NNPCL), clears the air on issues around blending and the production of PMS.  He also speaks on the operational module of the refinery with sustainability as a key component. Excerpts:

    There’s been this controversy about the refining and blending going on at the Port Harcourt Refinery regarding PMS production.  What’s the truth?

    Refining and blending are interconnected processes crucial for crude oil processing and optimizing refinery yields, especially when producing Premium Motor Spirit (PMS).

    PMS is not a single product but a carefully crafted blend of various refinery outputs, including naphtha, reformate, pentane-plus hydrocarbons, and other middle distillates, designed to enhance value and meet consumer needs.

    Blending operations are standard in refineries worldwide, with the process and ratios varying based on factors like crude oil type, refinery configuration, and specific fuel requirements (e.g., octane rating or sulfur content).

    Read Also: Smuggling of migrants: FG adopts automated verification of travel documents

    Don’t be swayed by individuals misusing technical terms they don’t fully understand to spread misinformation or hinder progress. Blending and refining remain essential and sophisticated components of modern fuel production.

    Okay, can you clarify the issue of purchase of reformate?*

    We did not purchase any reformate.  Someone referred to an email that was dated August before the current start-up of the refinery in November. We didn’t purchase reformate.

    The purchase did not go through at all.  We were going to purchase reformate for blending. Reformate is a high-octane product derived from the catalytic reforming process in oil refineries. It is a critical component in blending high-quality gasoline. It was too expensive to purchase this reformate and it was going to impact our margin which will make our products to be sold at a loss.  That’s why we didn’t follow through with it.

    Let’s go back to the issue of blending. Is it normal and best practice for refineries to blend Naphta with high RON gasoline?*

    We are not blending SRG with Napthat.  SRG is blended with Crack C5.

    Yes, it is normal practice to blend SRG with Crack C5.

    Straight-run gasoline blended with cracked C5 refers to a mix of two distinct gasoline components, typically aimed at optimizing fuel quality and meeting market specifications.

    SRG is often blended with higher-octane components such as crack C5 to create commercially viable gasoline.

    C5 is derived from fluid catalytic cracking (FCC) processes, specifically from the lighter fractions of the cracked products.

    Our FCC is in the New PH refinery, and it is undergoing construction.

    Blending takes place in the FCC which is normal operation practice.

    Cracked C5 compensates for the low octane rating of straight-run gasoline, making the blend suitable for modern engines.

    What caused the delay in getting the refinery going?

    Execution of a revamp project in a brown field environment has a greater technical difficulty which is multiple times higher than in a green field.

    Unknown and unforeseen technical challenges impeded the commissioning and startup multiple times and took us back several weeks hence schedule delays.

    How were the challenges surmounted?

    We partnered with and drew on the wealth of experience from an external party who had carried out commissioning and startup, currently operating and maintaining several refineries. The injection of these additional, highly skilled and competent resources was the game changer. We also identified and mobilised retired NNPC staff who had worked in the refineries, their experience and expertise were useful.

    We carried out a detailed technical review to understand and identify areas of vulnerabilities; we put a system in place to eliminate and address the bad actors systematically.

    *NNPCL went mute for some time regarding the commencement date.*

    You would recall we had made several attempts to start up the OPHR about six to seven times with dates, we felt there would be added pressure on the entire team once we announced a date, hence the reason why we made sure, based on lessons of the past, we went mute on commencement date to allow us sufficient time to ensure operations were stable.

    Why the secrecy and suddenness of the launch?*

    There was no secrecy and suddenness of the launch, we had to ensure the OPHR 60kbblpd was stable after the commencement of operation and we had built up sufficient volumes of the products.

    To what extent will this positive development impact the PMS space, going forward – in terms of pricing?

    PHR – and any operating refinery in Nigeria – will contribute to supply security for Nigeria and reduce the dependency on importation and the related USD needed for those imports. Refineries also contribute to technology developments and employment.

    Pricing will always be determined by market forces both inside and outside Nigeria, however, one could expect that using locally produced crude and reduction of imports reduce overall logistics costs.

    What supply mechanisms are in place to ensure a smooth operation and avoid a repeat of the type of Dangote issue with IPMAN and MOMAN?

    We have well-established ways of working with all market parties including IPMAN and MOMAN which will continue to apply also to any loadings from PH. That is, there is no need to establish new ways of working, just an extension for these to our PH location.

    Warri and Kaduna should be the next focus. What’s at play?

    The quick fix project of WRPC Area 1 (125kbopd) is in progress and expected to start operations first and subsequently the full plant. Construction work on KRPC (110kbopd) is progressing and is expected to come on stream as well.

    What’s the operating model for the refinery?

    • Crude Oil supply will be purchased from our NNPC Trading Company under sales and purchase agreement

    • Crude oil transportation will be via pipelines under the tariffing framework

    • Operations and Maintenance (planned turnarounds and reliability engineering) will be outsourced to the external contractor based on a 5-year contract,

    • Planning & Scheduling, Commercial, supply chain and Finance will be under PHRC

    • Product evacuation/offtake will be via NNPC Retail under the purchase agreement.

    What guarantees can Nigerians get that the issue of failed maintenance that plagued the refinery in the past will remain in the past?

    To ensure the sustainability of the historical operations of the OPHR 60kbblpd plant and the NPHR 150KBBLPD, NNPC has put in place an interim Operations and Maintenance Contract to guarantee uninterrupted operations of Area 5. As you are aware we are about to finalise the 5 years O&M tendering process, this will finally put us on the right path to ensure we have the best Contractor in the world working NNPC to ensure reliability and utilisation 210kbblpd refinery – this would ensure energy security to the Country.

  • Petrol Price: Five major ways to reduce fuel consumption

    Petrol Price: Five major ways to reduce fuel consumption

    Petrol pump prices rose to N998 and N1,030 per litre on Wednesday at various outlets of the Nigerian National Petroleum Company Limited (NNPC Ltd) in Lagos and Abuja, respectively.

    The recent development comes after the NNPC decided to terminate its exclusive purchase agreement with Dangote Refinery.

    Here are five ways to reduce fuel consumption

    1. Use AC when driving at higher speeds:

    While it might seem counterintuitive, driving with your windows down at speeds above 80km/h can actually use more fuel due to increased wind resistance. In this case, it’s more efficient to switch on the air conditioning—your car will glide more smoothly without the extra drag.

    2. Accelerate smoothly:

    Rapid acceleration and revving your engine to high RPMs might feel powerful, but it guzzles fuel. A steady, smooth acceleration keeps your engine running efficiently and helps conserve fuel, making your drive easier on both your wallet and your car.

    Read Also: We’re not responsible for petrol price hike – FG

    3. Brake gently:

    Slamming on your brakes not only wears them down faster but also forces you to burn more fuel when you accelerate again. Try to maintain a safe distance from the car ahead, so you can brake gradually and avoid wasteful fuel usage.

    4. Turn off the engine when idle:

    If you’re waiting for more than a couple of minutes, it’s a good idea to turn off your engine. Even when you’re stationary, an idling engine continues to consume fuel unnecessarily. A quick switch-off can save fuel and reduce emissions.

    5. Keep your tires properly inflated:

    Underinflated tires create more friction with the road, causing your car to work harder and consume more fuel. Keeping your tires at the right pressure not only enhances fuel efficiency but also extends the life of your tires, saving you from future expenses.

  • HoS tongue lashes Permanent Secretaries over PMS

    HoS tongue lashes Permanent Secretaries over PMS

    The Head of the Civil Service of the Federation Dr Folashade Yemi-Esan has slammed Permanent Secretaries for alleged lackadaisical approach to implementing the Performance Management System (PMS) across Ministries, Department and Agencies (MDAs) of the Federation.

    Speaking at the 2024 PMS retreat in Abuja, Yemi-Esan didn’t hold back, accusing Perm Secs of being “clueless” and neglecting their duties.

    With veins bulging, she asked: “How many perm secs have read the PMS policies and guidelines? Some permanent secretaries don’t even know what is in the guidelines.”

    She tongue-lashed Perm Secs for their apparent ignorance of PMS guidelines and their failure to take charge.

    With frustration boiling over, she admonished them to stop passing their duties to directors and start taking responsibility.

    Fuming, she questioned: “What else do Perm Secs want the Office of the Head of Civil Service to do for them? We have gotten consultants to train and handhold them on the implementation of the PMS. Are consultants suppose to do the work for them in their various MDAs? The consultants are there only to point perm secs in the right direction. 

    Read Also: PMS price in some African countries in Naira

    “Even the consultants are complaining to me that while there are in MDAs for months, the Perm Secs don’t even have time to sit with them. That is not good enough.”

    Yemi-Esan warned that the era of complacency was over, vowing to crack down on underperformance with rigorous scrutiny of quarterly reports.

    “A team of officers has been appointed to monitor the affairs of all MDAs. The report of the evaluation and monitoring exercise for the first quarter of 2024 will be considered,” she said.

    She urged Perm Secs to step up their game, warning of consequences for those who fail to deliver.

    Emphasising the importance of effective performance management, Yemi-Esan stressed the need for Perm Secs to drive accountability and foster a culture of improvement within their teams.

    She said:;”Appropriate institutional frameworks provide the opportunity for effective documentation of measured performance across sectors and priority areas of government. This ensures that the strengths of MDAs are identified, areas of weakness are addressed to improve performance, and regular feedback is received for their rankings.

    “PMS as we know is being driven as the

    second Pillar of the Federal Civil Service Strategy and Implementation Plan 2021–2025 (FCSSIP 25). In the emplacement of PMS within the implementation framework of the FCSSIP 25, a key building block that accounting officers must begin to accord due priority, is an effective incentive and consequence management system. 

    “One of the hallmarks of a functional Performance Management System is one in which employees face sanctions for non-compliance with procedures or get incentives for high performance.”

    She maintained that as accounting officers, it is pertinent for Permanent Secretaries to implement effective performance monitoring and reporting systems, providing timely and accurate data to inform decision-making and drive organizational performance. 

  • PMS price in some African countries in Naira

    PMS price in some African countries in Naira

    The average price of gasoline around the world is 1.31 U.S. Dollar per litre.

    However, there is substantial difference in these prices among countries.

    In Africa, Mali sells petrol for N2266 while Nigeria sells for a peak price of N668.

    The differences in prices across countries are due to the various taxes and subsidies for gasoline.

    All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different.

    Read Also: Fuel subsidy was costing FG N400bn monthly – Edun

    Here is a list of PMS price in some African countries in Naira and dollar

    NAIRA EQUIVALENT

    1 Mali: ₦2,266
    2 Ivory Coast: ₦2,289
    3 Cameroon: ₦2,196
    4Togo: ₦1,832
    5 Benin: ₦1,779
    6 Ghana: ₦1,594
    7. Nigeria: ₦668

    IN USD

    1 Mali: $1.435
    2 Ivory Coast: $1.450
    3 Cameroon: $1.391
    4 Togo: $1.160
    5 Benin: $1.127
    6 Ghana: $1.009
    7. Nigeria: $0.423

  • Police intercept bus laden with stolen PMS

    The police in Lagos on Sunday said they intercepted a Fiat bus laden with sacs of Premium Motor Spirit (PMS) suspected to have been stolen.

    The recovery, according to spokesman Bala Elkana, a Deputy Superintendent of Police (DSP) was made on March 28, around 12:30pm at Canoe in Ejigbo.

    In a statement released Sunday afternoon, Elkana said policemen on anti-crime patrol led by Sergeant Sunday Joseph had suspected the bus with registration number LND825BC.

    The contrasting paints on the bus- Lagos commercial vehicles colour in front and blue at the back- was said to have aroused the suspicion of the policemen who drew closer to the vehicle to interrogate the occupants.

    But on sighting the policemen, Elkana said the three occupants jumped out of the vehicle running in different directions.

    “The policemen pursued them and caught up with one of them, Wasiu Oyewole of 3, Oluwaseyi Street, Agodo Egbe, Lagos. The other two escaped.

    “The suspect confessed that he and his cohorts loaded the bus with multiple sacs laden with PMS. He claimed further that the Nigerian National Petroleum Corporation
    (NNPC) pipeline was bust in Owutu, Agric in Ikorodu where the products were loaded while their intended sales point was Ijegun.

    “Efforts are being made to track other accomplices who jumped off the vehicle on sighting the police. Meanwhile, NNPC officials have been contacted to decant the product.”

  • ‘We have enough petrol’ – NNPC tells motorists

    ‘We have enough petrol’ – NNPC tells motorists

    The Nigerian National Petroleum Corporation ( NNPC ) on Thursday in Abuja urged motorists not to engage in panic buying of any petroleum products.

    A statement by the NNPC Spokesman, Mr Ndu Ughamadu, assured motorists that the Corporation had a robust stock of Petroleum Motor Spirit ( PMS ) otherwise known as petrol.

    According to the statement, the PMS stock was sufficient to serve the nation for more than 30 days.

    ”This plea comes on the heels of queues noticeable in some fuel stations, especially in Abuja.

    ”Motorists are advised to report any marketer selling above N145 per litre of petrol or hoarding the products to the Department of Petroleum Resources (DPR) which is statutorily empowered to deal with such issues.

    ”DPR has offices located in all parts of the country and law enforcement agencies would mete out appropriate sanctions to operators of fuel stations who engage in hoarding or sell products above the recommended band,” Ughamadu said.

    In another statement, Ughamadu said the corporation’s Group Managing Director, Dr Maikanti Baru, had directed that repair works be carried out immediately on the Escarvos to Lagos Pipeline
    (ELP).

    Read also: NNPC doubles supply as scarcity bites harder

    The pipeline, ruptured by an explosion today, January 11, along Egbokodo-Omadino, in Warri South Local Government Area of Delta State.

    ”Dr Baru further directed that gas supply from other sources like Oben, Oredo, Sapele, Ughelli and Utorogu be stepped up to augment any shortfalls as repair works have commenced on the pipeline.

    ”The Escravos pipeline supplies gas to power plants, in addition to feeding the West Africa Gas Pipeline System.

    ”It should be recalled that ELPS-C (downstream) of this pipeline was incinerated by a bush fire Jan. 2, at Abakila, in Ondo State, which
    has since been rectified and brought back to service,” Ughamadu said.

    The earlier fire incident had affected gas supply to customers in Ondo, Ogun and Lagos States with subsequent shutdown of some power plants with a combined generating capacity of 1, 143MW.

    NAN

  • No plan to increase fuel price – NNPC

    No plan to increase fuel price – NNPC

    The Nigerian National Petroleum Corporation, (NNPC) has once again said it has no plan to increase price of premium motor spirit, (PMS) otherwise known as petrol in country.

    NNPC in a statement by Ndu Ughamadu, Group General Manager Public Affairs Division, said the pump price of petrol remains N143 per litre in NNPC Retail outlets and N145 in other fuel stations, while maintaining PMS ex-depot price of N133.28k per litre to marketers.

    “In the last few weeks, the corporation has increased its daily truck-outs of PMS per day to ensure petrol sufficiency across the states of the federation” .
    “Motorists and other consumers of petroleum products are assured that NNPC has a robust sufficiency of petroleum products to cater for their daily consumption” .

    “Marketers are hereby cautioned against hoarding or diversion, as law enforcement agencies have been enjoined to deal appropriately with defaulters”.

    “Again, NNPC affirms that it has no intension, whatsoever, to execute any increase in the pump price of petrol, as such the price of PMS stands at N143 per litre in NNPC Retail outlets and N145 per litre in other fuel stations” .

     

     

     

     

  • Law to ban petrol vehicles coming in 3years – Sen. Tinubu

    Law to ban petrol vehicles coming in 3years – Sen. Tinubu

    Senate Committee Chairman on Environment, Sen. Oluremi Tinubu has said the committee in three years will sponsor a bill banning vehicles that run on Premium Motor Spirit (PMS).

    Tinubu said it is the responsibility of the Senate to promote legislative superstructure that will help the nation achieve Green economy.

    She spoke at the 10th Anniversary of National Environmental Standards and Regulations Enforcement Agency (NESREA) and 11th National Stakeholders’ forum themed: “Environmental Governance, a key to achieving green economy,” held at the weekend in Abuja.

    She said: “When we are discussing the environment and greening the economy for sustainable development, there has to be a legislation on ensuring all industries in Nigeria are running on green fuel, solar energy and other alternative systems.

    “We need to strengthen NESREA. We also need a law that says in the next three years, all automobiles in Nigeria must use gas and other non-fuel systems, fuel cells, solar power and the rest.

    “The time to set the framework is now, if we don’t do that now we would delay dooms day, other countries have setup their green policies economies and Nigerians cannot drive their cars to such countries. India today, all the tricycle and all the public transport systems go on compressed gas.

    “The standard needs to be set in Nigeria. The European Union (EU) have set their own standards that in less than 10years, we would not have anything to do with petroleum products as sources of fuel except compressed natural gas or natural gas as it is in the air.

    “If we don’t get it right through the law and penalties set in that law that will punitively punish those who disobeyed it, we would not get to where we want.”

    Represented by the Committee Vice Chairman, Ogola Foster, the committee chairman, said it was imperative because of the implication of gas emissions in the nation, unlike other progressive countries that adopts renewable energies.

    The NESREA Director General, Dr. Lawrence Anwuka, in his remarks described the action against pollution and protection of the environment as a collective responsibility.

    Anwuka expressed optimism on supports from the lawmakers stressing that proper legislative framework will smoothen operations of the agency.

    However, he noted that the 34 regulations have so far been enacted and being implemented since commencement of their operations.

  • I inherited N600bn debt owed to marketers of PMS – Kachikwu

    I inherited N600bn debt owed to marketers of PMS – Kachikwu

    Cheap petrol is coming, Minister of State for Petroleum Resources Dr. Ibe Kachikwu predicted yesterday.

    His forecast is based on what he described as the competition inherent in the Premium Motor Spirit (PMS) price modulation.

    He said the price of diesel, which is now 40 per cent down amid surplus supply, was enough evidence that petrol prices will also crash. Petrol is N145 per litre.

    Presenting his scorecard on his two years in office in a podcast released to reporters in Abuja, Kachikwu said that “once Nigerians throw their trading skill in it, once competition thrives, the prices will continue to tumble.

    “My guess is that you will see the prices tumble in the next four, five to six months. The market will be more stable and definitely, the prices will be lower than what we see today.”

    Besides, said the minister, in the last 10 years, this is the first time that the three refineries are working simultaneously, although at 50 per cent of their capacity.

    “We expect to put in investment to put them to 90 per cent capacity,” he said.

    According to Kachikwu, this is the first time the NNPC group has recorded savings, which could be used to address the refineries alongside the Joint Venture Partners.

    The minister noted that this is the first time the government has upgraded the depots. Of the 19, only three are grounded.

    He said this is the first time that a government is considering the replacement of the 35-year-old pipelines.

    “It has been one massive problem after the other for the sector to stabilise in term of product supply.

    To Kachikwu, “the time has come to take on the problem bullishly and that is what we are trying to do”. “So, we believe the ire will be money for infrastructural development in the downstream sector”, he said, adding:

    “We believe that a lot of the companies will jump up now and be able to sell at the right prices and not the pump down by the problem of price control and will be able to grow their businesses. We believe that most of them, efficient ones will drive prices southward rather than northward.

    “And we believe that almost 200,000 jobs will be created in this sector and over 400,000 jobs will be saved, which would have been lost if we had continued on the path we were in.”

    On the assumption of office two years ago, Kachikwu said, he inherited a debt of N600billion owed to marketers of Premium Motor Spirit (PMS), which the Federal Government settled.

    His words: “Now, why do we have to do this? The first one is that when we came into position in August, last two years, about  N600billion was owed to marketers. And all of them basically ceased importing products.

    He spoke of how he lifted Nigerians from the pains of the scarcity of the Premium Motor Spirit and its concomitants queues.

    He noted that the product was scarce because its selling price was higher than its cost price, hence the removal of the Petrol Support Fund (PSF), also known as petrol subsidy.

    Kachikwu said: “ I know that a lot of you watched as we moved price from N86.50; you to N145 were screaming where were we heading ?”

    According to him, there would have been no better time to accomplish the feat other than in the administration of President Muhammadu Buhari, who is trusted enough to utilise the benefits from PMS for the betterment of the country.

    This, according to him, upon the removal of the subsidy, the marketers were reluctant to import the product owing to their lack of access to forex.

    He said the government had no money from crude oil following the reduction in production as the militants were on rampage .

    The minister said: “The reality was that we did have the barrel to throw at it; we didn’t have the refineries . The Federal Government was bleeding. The production today is about 1.4  because the militants attack had taken away about 800,000 barrels per day. Once you do not have the barrel, foreign exchange does not come in.

    “So foreign exchange was depleting and the question was what did we do with the foreign exchange we had.

    “And the President made the right choice to leave what we have intact so that we do not run into a state of bankruptcy. The only option we had was to create a liberalised environment so that people can bring in their products, source their money from secondary markets, charge the right price, which they would not do unless the price was high. Fellow Nigerians, we were left with no option than what we did.”

    According to Kachikwu, the refineries were not working but as soon as the government was able to revamp, the 445 barrels per day was sent to the refineries

    He noted that the situation culminated in almost making the Nigerian National Petroleum Corporation (NNPC) the sole importer of PMS instead of its statutory provision of 55 per cent.

  • Fuel price strike: Senate to interface with FG, NLC

    The Senate Wednesday resolved to interface with the Federal Government and the organised labour on an early resolution of the industrial action by a faction of the Nigeria Labour Congress (NLC) over the fuel price hike.

    The upper chamber mandated its Committee on Labour to interface with both the Federal Government and the organised labour to ensure that issues that led to the strike are quickly resolved.

    Deputy Senate President, Ike Ekweremadu, announced this after about 30 minutes closed session.

    Ekweremadu said that the Senate in the closed session deliberated on the nationwide strike by organised labour.

    He noted that the intervention of the Senate became necessary in order to find ways and means of resolving the issues that led to the strike to avoid inflicting untold hardships on Nigerians.

    He added that “We also mandated the committee on Labour under the chairmanship of Senator Mohammed Nasif, to continue to interface with both government and labour for an early resolution of all the matters.”

    Meanwhile the upper chamber adjourned plenary till Tuesday May 24, 2016.

    Although Senate Leader, Senator Mohammed Ali Ndume, claimed that the adjournment was informed by the need to enable standing committees to works on bills referred to them, insiders said that the adjournment was actually to allow Peoples Democratic Party (PDP) Senators time to prepare for their national convention holding in Port Harcourt, the Rivers State Capital on Saturday.