The Nation Newspaper

Tag: supply

  • Global oil supply dips by 41000 bpd in April

    Global oil supply fell by 41,000 barrels per day (bpd) in April, the Organisation of Petroleum Exporting Countries (OPEC) said in this month’s oil market report.

    The organisation said world oil supply fell by 0.41 million barrels per day (mbpd) in April to average 95.81 mbpd. However, global oil production was 831,000 barrels daily higher than a year ago and increased by 363,000 barrels per day in the first quarter of the year, it added.

    The report said: “Non-OPEC oil supply in 2016 was revised down by 18,000 barrels per day due to a downward revision of Russian oil supply in fourth quarter of 2016 to average 57.30 million barrels per day – indicating a year-on-year decline of 0.71 million barrels per day.

    “In contrast, oil supply in 2017 was revised up by 0.36 million barrels per day to average 58.25 million barrels per day – representing year-on-year growth of 0.95 million barrels per day, following changes in all quarters, mostly in the US, based on US actual production data from February and new forecasts for crude oil output.

    “In 2017, US growth forecast was revised up again, rising by 0.28 million barrels per day to average 0.82 million barrels per day. Similarly, but to a lesser extent, Canada, Brazil and Kazakhstan were revised up, while the growth forecasts for Mexico, China, Azerbaijan, Indonesia, Oman and Colombia were in decline.’’

    It continued: “OPEC natural gas liquids (NGLs) and non-conventional oil production in 2016 was revised down by 34,000 barrels per day to average 6.05 million barrels per day, and indicates a growth of 0.11 million barrels per day year-on-year, while for 2017, the growth forecast was revised up by 40,000 barrels per day to 0.17 million barrels per day to average 6.22 million barrel per day.

    “In April, OPEC production decreased by 18,000 bpd, according to secondary sources, to average 31.73 mbpd. Non-OPEC oil supply in 2016 is estimated to have averaged 57.30 mbpd, representing a decline of 0.71 mbpd over the previous year, and a downward revision of 0.02 mbpd from the last assessment.

    ‘’Within the quarters, non-OPEC oil supply encountered historical downward revisions in fourth of 2016 by 72,000 bpd, only in Russia. Non-OPEC supply in 2016 saw strong declines in  Organisation for Economic Co-operation and Development (OECD) Americas (0.47 mbpd), China (0.31 mbpd), and developing countries (0.10 mbpd.’’

    It added that preliminary March and last month’s data based on weekly figures shew a return to an upward trend with industrial, road transportation fuels, notably distillates and motor gasoline, accounting for the bulk of these increases.

  • ‘Fuel supply sabotage’: NUPENG wing faults DSS allegation on Ubah

    The Petroleum Tanker Drivers’ (PTD) wing of the National Union of Petroleum and Natural Gas Workers (NUPENG) yesterday faulted the Department of State Security Services (DSS) over allegation of collaboration with the Managing Director of Capital Oil and Gas Limited, Ifeanyi Ubah, to disrupt distribution of petroleum products.

    It said no individual or institution can be allowed to use tanker drivers to cause any economic sabotage.

    The union, which made the clarifications in a statement by its national chairman, Otunba Salmon Oladiti, dismissed the allegation as ”baseless, unfounded  and totally untrue”.

    The DSS linked Ubah’s arrest to alleged plans to incite members of the PTD, a critical player in the downstream sub-sector of the petroleum Industry, to refuse/stop the lifting of products.

    But the tanker drivers, through their chairman, said there was no way its members could be used for economic sabotage.

    Oladiti said the union has no relationship with the firm’s chief, ‘’ beyond the precinct of promoting, projecting and protecting the security of jobs and welfare of our members”.

    The statement said: “We read from an online publication the arrest of Ifeanyi Ubah for stealing and diversion of petroleum products worth N11 billion and further allegation of inciting Petroleum Tanker Drivers to cause economic sabotage.

    ‘’The leadership of the Petroleum Tanker Drivers wishes to categorically deny the allegation of Ifeanyi Ubah or any other individual, inciting the tanker drivers to cause any economic sabotage.  The allegation is baseless, unfounded and totally untrue.

    ‘’Our responsibility as a trade union is solely to promote, project and protect the job security and welfare of workers, most especially the petroleum tanker drivers in Nigeria.

    ‘’We have no further relationship with any capitalist/ employer beyond the precinct of promoting, projecting and protecting the security of jobs and welfare of our members.’’

    The union further restated its commitment to the war against corruption by the federal government and its determination to sustain what it called “a good brand of integrity and excellent service to the nation”.

    ‘’We unequivocally support the ongoing war against corruption by the current government and any capitalist/employer found culpable of stealing, diversion or embezzlement of government funds should be appropriately dealt with in accordance with the law.

    ‘’The PTDs’ branch of NUPENG has over the years built a good brand of integrity and excellent service to the nation and we will not allow anyone or institution, no matter how highly placed to bring this beautiful brand our forebears toiled to build into disrepute.’’

  • Domestic gas supply increases to 40%, says DPR

    Domestic gas supply increases to 40%, says DPR

    •Agency fines defaulters  

    Domestic Gas Supply Obligation (DSO), an initiative of the Federal Government to meet national demand, is achieving the desired result with the level of compliance by oil producing firms rising to 40 per cent this year, The Nation has learnt.

    Before now, the level of compliance by oil firms was very low. According to the Department of Petroleum Resources (DPR), between 2008-2013, DSO compliance was about 23 per cent, by 2016 it rose to 38.18 per cent and currently stands at 40 per cent.

    DPR’s Deputy Director/Head, Upstream, Mrs. Pat Maseli, stated this at the 10th annual sub-Saharan Africa Oil and Gas conference holding in Houston, Texas.

    She said DSO was assigned annually to all gas producers, such as Shell Petroleum Development Company (SPDC), Agip, Total, Chevron, Mobil Producing Nigeria Unlimited (MPNU), Addax, Nigerian Petroleum Development Company (NPDC), and Pan Ocean Oil Company Limited (POOCL) pursuant to the National Domestic Gas Supply Obligation & Pricing Regulations 2008 to determine the gas demand or the national gas requirement annually and evaluate utilisation along the gas value chain, among others.

    Maseli noted that the Federal Government intervenes in several ways to ensure that national gas requirements are adequately met. Some of the interventions include the estabegy to facilitate orderly gas sector development, ensures integrated approach to maximise potential benefits and ensure sustained implementation, which is critical for actualisation

    Others are through legislative reforms, Domestic Gas Supply Obligation Regulation (DGSO) 2008, establishment of National Gas Policy (NGP) and Production Sharing Contract (PSC) gas terms, provision of guidelines for third party access to gas-at-flare-points, commercial framework reforms, transitional gas pricing to power and other sectors, world class contractual frameworks for supply, transmission and network access, World Bank revenue securitisation, gas aggregator to manage DGSO and price aggregation, infrastructure blueprint, provision of network of critical pipelines and three Central Processing Facilities (CPF), Network Code Implementation, Petroleum Industry Gas Bill (PIGB) and sanctions, which include imposition of penalties such  as $3.5 per 1000 standard cubic feet (scf) shortfall, among others.

    Apart from boosting domestic gas supply to meet national demand, Federal Government’s interventions were to ensure that as much as possible is utilised to reduce flaring.

    According to a report on global gas flaring in 2015 by the World Bank led Global Gas Flaring Reduction (GGFR), Nigeria ranks seventh in the world having flared about 8billion cubic meters of gas in 2015.

    The GGFR report stated that within the period under review, Russia topped the global flaring with 20billion cubic meters of flared gas followed by Iraq with 16bilion cubic meters, Iran 12billion, United States 11billion, Venezuela and Algeria nine billion cubic meters each.

  • 37 bid to supply NNPC six trucks

    37 bid to supply NNPC six trucks

    No fewer than 37 companies have submitted bids to supply six triple agent firefighting trucks for the operation of the Nigerian Pipelines and Storage Company (NPSC), one of the downstream subsidiaries of the Nigerian National Petroleum Corporation (NNPC).

    Speaking at a public bid-opening exercise held at the NNPC Towers yesterday, the Managing Director of NPSC, Mr. Luke Anele, who was represented by the Manager, Health, Safety and Environment (HSE), Mr. Agbami Tijani Mohammed, said the bid would lead to the procurement of six fire fighting trucks that would replace the non- functional and old trucks in its fleet.

    NNPC’s Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a statement yesterday, explained that the public bid-opening exercise is part of NNPC’s avowed commitment to openness and transparency aimed at transforming the Corporation into a focused, accountable, competitive and transparent organisation conducting its business with integrity.

  • BEDC tackles low supply, estimated billing

    Benin Electricity Distribution Plc (BEDC) has resolved about 128,000 issues  on low supply and bill estimation, its Managing Director/Chief Executive Officer, Mrs. Funke Osibodu, has said.

    She made this known tduring the inauguration of the company’s Asaba Customer Complaints Forum Office in Delta State.

    She said the office opening would re-invigorate BEDC’s commitment to improve customer service standard in Delta, despite the challenges confronting distribution companies (DisCos).

    Among the challenges, she said, were low power generation to the grid, metering gaps, transmission limitations, low payment culture and vandalisation of power infrastructure.

    “The power sector is a value chain comprising generation, transmission, distribution and ultimately the customer utilisation. This implies a string of interdependency among the four tiers. While the customer is king, he must pay for services rendered to him to ensure that the entire value chain continues to provide good service,” she said.

    Mrs Osibodu, represented by the Executive Director, Commercial, Abu Ejoor, added that as part of efforts at resolving complaints on estimated billing and to assist customer self-manage and regulate their electricity consumption, BEDC has also introduced the billing calculator format.

    This, she explained, is for customers to estimate their billing from consumption, adding that with it customers could calculate the installed electrical load in their premises with available power supplied and use same to crosscheck the billing as well as manage the use of appliances that consume heavy load.

    The Commissioner, Consumer Affairs, Nigerian Electricity Regulatory Commission (NERC), Dr Moses Arigu, said the opening of the  Forum office could not have come at a better time when customers within the BEDC network were facing several challenges, including safety issues, disconnection of communities, and estimated billing issues.

    Arigu noted that though BEDC holds a 30 per cent deficit in metering, the implementation of its meter roll out plan with the performance agreement would inject an average of about 100,000 meters yearly over the next five years, thereby closing the gap in the next three years based on the roll out plan.

    He confirmed that the Commission has wound down the Credited Advance Payment for Metering Implementation (CAPMI) programme, assuring that efforts were being made to ensure that the pace of metering continues using other schemes currently being reviewed.

    He congratulated the newly appointed forum members, including Oghene-Ovie Ukochovwera representing Nigeria Society of Engineers (NSE), Abraham Ifode from Consumer Protection Council (CPC), Mr. Solomon Ejenavi Akperiojire from the Manufacturers Association of Nigeria (MAN), Mr. Peter Okolie of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Mr. Ugochukwu Santino Ozah from the non-governmental organisation (NGO) sub -sector. He asked them to approach their tasks with equity and patriotism.

    Delta State Commissioner for Energy, Newworld Safugha, who represented the Delta State Governor, Dr Ifeanyi Okowa and Senator James Manager, Chairman, Senate Committee on Solid Minerals, said the danger of illegal connections and overbilling were of concern to the government, urging the forum to address them.

  • March inflation dips on forex supply, says NBS

    March inflation dips on forex supply, says NBS

    Annual inflation in Nigeria fell for a second straight month in March, showing the early effects of the Central Bank of Nigeria (CBN) intervention on the currency market to meet demand for dollars, the National Bureau of Statistics (NBS) said yesterday.

    Inflation declined to 17.26 per cent in March, NBS said in a report, down from 17.78 per cent in February, which was the first drop in 15 months.

    A Reuters’poll of economists had predicted a decline to 16.70 per cent.

    General price levels in rose for the 12th straight month in January to its highest level in more than 11 years, as the nation battled an economic recession, a currency crisis and dollar shortages, brought on by low oil prices, its economic mainstay.

    The NBS said the second consecutive month of a decline in the headline rate represented “the effects of stabilising prices in already high food and non-food prices”.

    “It is also indicative of early effects of a strengthened naira in the foreign exchange rate market,” it said.

    The CBN has sold over $4 billion on the forward currency market since February in an attempt to improve dollar liquidity and narrow the spread between the official and the black market exchange rates. Black market rates have fallen as a shortage of dollars caused the naira to plummet.

    A separate index showed food inflation at 18.44 per cent in March from 18.53 per cent in February, it said.

  • Marketers stop fuel supply to Ekiti

    Independent Petroleum Marketers Association of Nigeria (IPMAN), at the weekend,  stopped supply of fuel to Ekiti State.

    They are protesting the demolition of four filling stations under construction in Ado-Ekiti by Governor Ayo Fayose.

    The demolition, they claimed, “was done in bad faith and malice”.

    The governor, who revoked their Certificates of Occupancy, said he would not allow construction of filling stations in “unauthorised places”, such as residential areas and ordered  marketers to apply for recertification.

    The situation has inflicted hardship on motorists, motorcyclists and commuters as residents travel to neighbouring states to buy fuel.

    Black marketers are cashing in on the situation to make brisk business.

    Only the Nigerian National Petroleum Corporation (NNPC) filling station at Ajebamidele was dispensing fuel yesterday.

    It was besieged by motorists who formed a long queue.

    Others who could not withstand the rigours travelled as far as Iju, Itaogbolu and Akure in Ondo State to buy the commodity.

    A senior IPMAN executive said yesterday that members had received an order from the Abuja headquarters to stop supply of fuel to Ekiti.

    He said petrol marketers were  demonised by the governor, who called them thieves and other unprintable names on a live radio and television programme.

    “Withdrawal of their services was one of the ways to send a strong message.”

    The source said: “Yes, this order came from Abuja and it is above oil dealers in Ekiti State.

    “Our people in Abuja were not happy with how the members are being threatened in Ekiti.

    “No tanker can enter the state. But there is an instruction that we can  sell the one we have in our underground tanks after which the directive will take effect.”

  • CBN sustains forex supply with $170m disbursements

    CBN sustains forex supply with $170m disbursements

    The Central Bank of Nigeria (CBN) yesterday channeled $170 million as wholesale intervention in the interbank market to meet the requests for Business/Personal Travel Allowances and other pressing dollar demands.

    In a statement, the bank explained that the interventions were exigent as more customers of banks and other business people overcome the earlier difficulties in obtaining forex for their transactions, and in a bid to sustain the tempo of foreign exchange supply to the interbank forex market and ensure liquidity.

    CBN’s Acting Director, Corporate Communications, Isaac Okorafor, said the bank remained resolute in ensuring that it supplies enough forex to genuine customers of Deposit Money Banks and increase liquidity in the market.

    According to him, the uniqueness of the Wholesale Forwards was that banks are allowed to use their winnings from auctions to fund matured obligations to meet Letters of Credit remittances, extinguish bills for collection and other forex demands.

    With this development, importers who had hitherto been using bills for collection will now experience relief instead of having to patronize other more expensive sources.

    It will be recalled that the CBN only on Tuesday, injected another sum of $100 million into the interbank foreign exchange market in its resolve to ease the challenge of access to foreign exchange by genuine customers.

    Thursday’s injection by the CBN takes the amount so far offered in the interbank forex market within the past few weeks to over $1.2 billion for both wholesale and retail interventions.

  • Minister laments poor power supply to Abuja

    Minister laments poor power supply to Abuja

    Minister of the Federal Capital Territory (FCT) Malam Muhammad Bello has called for an improvement in the volume of electricity supplied to Abuja to effectively power critical infrastructure.

    Bello spoke when he received the management team of the Transmission Company of Nigeria (TCN), led by the new Managing Director, Mr. Usman Gur Mohammed, in his office.

    The minister, who described the 11 per cent electricity allocated to the FCT and neighboring states as grossly inadequate, called on the TCN to allocate more power to the Abuja Distribution Company (AEDC), with specific instruction that the extra power be dedicated to FCT.

    A statement by his Deputy Director/Chief Press Secretary, Muhammad Sule, said: “Powering the city’s critical infrastructure like streetlights, hospitals, water treatment plants and waste management value chain, especially the liquid waste management, has been a big challenge with epileptic power supply.

    “We have been faced with a number of options, like going off grid. But we realise that going off grid will require was using fossil fuels and installing generators around the city; this of course affects the environment critically.

    “Really, I want you to consider some short term solutions. We need power in Abuja, not just to make the city look beautiful, but for security also.

    Bello noted the FCT administration released N500 million to the AEDC as part payment of its bills.

    Mohammed appreciated the warn reception accorded his team and promised that in collaboration with the National Electricity Regulatory Commission (NERC), TCN will consider the minister’s request for more allocation of power to the Abuja zone.

    He hinted that TCN is working on the possibility of bringing in additional power lines through Lafia in Nasarawa State, to support the Gwagwaglada and Suleja lines.

  • Power generation hits 4,043Mw as gas supply improves

    Power generation hits 4,043Mw as gas supply improves

    The Transmission Company of Nigeria (TCN) has said power generation rose from 3,528 megawatts (Mw) to 4,043 Mw between Feb.1 and Feb.15.

    TCN, in its website, explained that the 515Mw increase in generation as at Feb.15 was due to slight increase in gas supply to some power generating companies (GenCos).

    “The total output of 4,043 megawatts from all the GenCOos on Wednesday has been transferred to the 11 distribution companies across the country,’’ TCN said.

    An official of Egbin Power Station, who pleaded anonymity, said gas supply to the station had increased slightly in the last seven days.

    The source told the News Agency of Nigeria (NAN) that the station, which has capacity to generate 1,320Mw now generates 420Mw as against former generation of 160Mw.

    The official called for more gas supply to the station to enable it fire all its five turbines.

    “The 420Mw generated by the station has been linked to the national grid by 5.35 am on Wednesday,’’ the source said.

    The Nigerian Electricity Supply Industry (NESI) had announced drop in power supply on Jan. 22 to 2,662.20 Mw due to low water levels and the challenge of accessing gas by GenCos.

    Also, the Minister of Power, Works and Housing, Mr Babatunde Fashola,  said he would like consumers to be more resistant to the payment of electricity bills, if there was no supply.

    Fashola spoke at the 12th Monthly Power Sector and Stakeholders’ Meeting hosted by the Ibadan Electricity Distribution Company (IBEDC) in Ibadan.