The Nation Newspaper

Tag: supply

  • Water supply: Solar plant to the rescue

    Water supply: Solar plant to the rescue

    A solar-powered plant will boost water supply and save millions of naira, reports GBENGA OMOKHUNU

    A SOLAR-POWERED  plant at the Lower Usuma Dam Water Treatment facility in the Federal Capital Territory (FCT) will enhance water supply and save the country about N305 million.

    This will be a huge relief to residents of the nation’s capital who, especially those in the suburbs, search hard to find life’s most precious liquid.

    The Director, Renewable and Rural Power Access in the Federal Ministry of Power, Works and Housing, Mr. Adebisi Adebayo made, an engineer, announced the development while inspecting the introduction of clean energy by solar electricity generation system project at the plant.

    He said the project funded with a grant of 8.8 million dollars from the Japan International Cooperation Agency (JICA), will on completion, be linked to the national grid, thereby reducing the cost of  power supply.

    He said the government is working to explore the solar energy in the North and hydro in the South as sources of clean energy in ensuring stable electricity supply in the country.

    His words: “There is a technical capacity going on whereby engineers from the ministry, from water board, from Abuja discos and some other engineers are being trained in the maintainance of this but we realised that this project is sited in the water board so the engineers here are well-trained so that they can take over to sustain the project.

    “The project is about 918 million Japanese yen. It will save Nigeria N305 million per year. In the day time you can be guaranteed constant power but in the night it may not be. It reduces the cost of electricity to this station in particular.

    “One of the things we have done in my department at the ministry is to have what we call (REMO), it means Renewable Energy Micro Greed Utility. It is a form of utility on its own that can be readily deployed to areas and villages that a far in the Remote Areas from the greed which in the next 20 years they may not have electricity.

    “But you can bring electricity to them by using powers that are below 1MW. Like this one new you can have it in some communities. 1 Mega Watts in a particular city or in a local government headquarters can solve the problem of that local Government.

    “We are also working on a method that you do not even need to go and print bills. You can recharge like your telephone with your handset and pay for your bill. It removes the human element and the issue on return on investment is now guaranteed.”

    The president of the Japan International Cooperation Agency (JICA), Mr. Shinichi Kitaoka while reiterating the commitment of the Japan to ensuring the stability and development of the Nigeria said the development of Africa is hinged on how fast Nigeria develops.

    “Without the development and stability of Nigeria it may be difficult to expect the development of Africa,” he said.

    He said clean energy is important and the location of project inside the water treatment plant is quite commendable, “this is a very good idea to have water treatment plant and power station in the same place.

    “Japan as a global power express sympathy for Nigeria and supports the country to ensure its stability and progress. The world is also more concerned about energy.

    “We are a rice production country and we have high technology of rice production. My first impression after inspecting here is that this is a very green area and Nigeria has great potential in agriculture and it is strange that Nigeria is importing rice. You could export rice with this weather. So we are hoping that we can cooperate more so that we can produce more rice and export rice.”

    The director of the FCT Water Board,  Hudu Bello said though the board has been supplying water regularly to the residents, the project when completed would augment the efficiency of the board.

    He said the board can now conserve energy and reduce the cost of buying diesel to power the water treatment plants.

    “It will guarantee continuous water supply,”he said.

  • NNPC mulls 3bscf/d domestic gas supply by 2017

    NNPC mulls 3bscf/d domestic gas supply by 2017

    The Nigerian National Petroleum Corporation (NNPC) is  to increase domestic gas supply to three billion standard cubic feet per day (bscf/d) by the end of next year and 7bscf/d by 2020, it was learnt at the weekend.

    As at last January, domestic gas supply stood at about 1.3bscf/d, but by end of last month, it dropped by over 100 per cent to 500 million standard cubic feet per day (mmscf/d) due to renewed attacks on pipelines by the Niger Delta militants.

    To scale up industrial activities , NNPC  is targeting additional 2.985 bscf/d gas supplies by the international oil companies (IOCs) aside the 2.460bscf/d their  projects can supply.

    The national oil firm is also eyeing 1.895 bscf/d of gas from the Nigerian Petroleum Development Company (NPDC), an arm of NNPC and recovery of 1.605bscf/d from repair of vandalised pipes. Also it is fast-tracking the construction of the Obiafo/Obrikom/Oben (OB3) pipeline at 70 per cent completion and expected to be completed by last quarter of next year, and the Escravos-Lagos Pipeline System (ELPS) Phase 2, which is at 76 per cent completion and expected to be completed by third quarter of this year.

    The OB3 pipeline is planned to supply gas to Geregu PHCN and NIPP plants, Egbema NIPP, Alaoji and Calabar NIPP, and Okpai power plant, among others, while ELPS 2 will feed Olorunsogo PHCN and NIPP, Sapele power plant, Omotosho PHCN and NIPP, Ihovbor NIPP, and Egbin power plant.

    The NNPC source said: “Some of the NNPC intervention programme include connecting all existing power plants to permanent gas pipeline, resolve community interference through aggressive dialogue and engagements with stakeholders, and repair the damaged ELPS 1 and restore gas supply to the west.

    “We (NNPC) will ensure delivery of the NPDC and IOCs short term projects, complete ELPs II and OB3 gas pipeline projects, secure funding to actualise the identified upstream gas development that will enable additional 7bscf/d gas supply to meet the projected demand by 2020, complete the production sharing contract (PSC) gas terms to enable market the huge offshore gas resources, and progress the development of Gas Based Industries.

    “The Corporation will also evaluate the possibility of installing gas storage for security of supply and to edge against contract risk, evaluate option of regasification of liquefied natural gas (LNG) as a strategic intervention for alternative gas supply in case of outages of pipeline, evaluate flexibility in the pipeline system to flow of gas between domestic and export without jeopardising existing contractual arrangements.”

    He noted that based on all known domestic gas supply projects, base case supply is forecast to grow to 4.7bscf/d by 2020, this implies an imminent shortfall of about 2.9 bscf/d. In fact, from 2019 the base case gas supply does not even meet the power demand projection, he added.

     

  • Trafigura, others in talks with marketers on fuel supply

    The Federal Government’s decision to deregulate the downstream sector appears to be paying off as globally acclaimed-oil trading institutions are approaching indigenous oil marketers for a deal, The Nation has learnt.

    The firms – Trafigura (Switzerland), Puma (Singapore), Noble Group (Hong Kong), and Archer Daniels Midland Co. (Illinois), Vitol Group (Swizerland), Mercuria Energy Group (Switzerland), and Cargill Energy Incorporation (Minnesota) – which are global firms with operations in North America, South America, Europe, Asia, Africa, have been meeting with major and independent marketers for a deal.

    According to sources, if the deal sails through, it would see the oil trading firms supplying fuel to marketers in Nigeria.

    An independent oil marketer, who spoke on the condition of anonymity, said partnership plans among marketers were ongoing, adding that the leadership of the Independent Petroleum Marketers Association of Nigeria (IPMAN) may speak on the issue.

    IPMAN’s President Chief Chinedu Okoronkwo confirmed the discussions.  He said it was difficult to rule out partnership among oil and gas operators within and outside the country since the industry has been deregulated.

    He said deregulation has created room for competition, adding that the best way operators could maximise the gains of deregulation is to go into partnership.

    Okoronkwo said: “In view of the recent deregulation of the downstream sub-sector of the oil and gas industry, the country should be expecting huge supply of petroleum products soon.  The reason is because marketers and major oil trading firms are discussing to achieve that goal. Trading firms, such as Trafigura, Puma and others have been coming to Nigeria to hold meetings with marketers on how to supply them fuel, and further establish an enduring relationship with them.

    “The firms want to start bringing fuel to Nigeria. They have spoken to many marketers and the response has been quite good.  There would be increase in the supply of fuel in the country soon, a development, which would engender competition in the industry.”

  • Water corporation chief promises regular supply

    There will be regular water supply in Lagos soon, Group Managing Director (GMD)/ Chief Executive Officer (CEO) of the Lagos Water Corporation (LWC), Mr. Muminu Adekunle Badmus, has said.

    Badmus, an engineer, over the weekend at the corporation’s headquarters in Ijora, Lagos blamed irregular water supply in the last few days on the vandalism of gas pipelines in the Niger Delta, which affected electricity supply.

    Apologising to Lagosian, Badmus said: “No responsive and responsible government will ignore an issue as important as water without a proactive plan that will proffer a solution to the challenges occasioned by lack of water in an urbanised state like ours.

    “We know that the population is increasing. We know that water demand is high. On our part, we are working to ensure that this essential service is effectively and efficiently delivered. The unstable water supply has become a source of worry because the state has put the facilities needed in place to ensure potable water supply, but the erratic power supply from the national grid and the Independent Power Plant (IPP) affected water production and supply.

    “But we are not relenting in our efforts to ensure that water runs in every home. This is our desire and we are committed to it.”

    The corporation, he added, has reconnected some of its waterworks to the Ikeja Electricity Distribution Company (IKEDC) and generators, despite the high cost of diesel.

    Badmus said: “We take this opportunity to appeal to residents to be patient, as we are working to ensure water supply in every part of Lagos. The corporation has just inaugurated Mosan Okunola Mini Waterworks, which will produce two million gallons of water per day and Otta Ikosi Regional Waterworks that will produce four million gallons of water per day to complement the production capacity of existing water facilities.

    “In addition, LWC has completed arrangement with investors to implement commercial water distribution kiosk projects as a pilot scheme to install, manage and generate revenue from the venture, using prepaid meters.”

    Badmus said LWC has an installed production capacity of 210 million gallons per day (mgd), adding that the three major surface water treatment plants of Adiyan (70mgd), Iju (45mgd) and Isashi (4mgd) had a combined production capacity of 119mgd with the balance from ground water treatment plants-mini and micro waterworks.

    According to him, the total installed capacity can only meet about 49 per cent of the present demand of 540 million gallons per day.

    Badmus said the state’s population of about 20 million is projected to hit 29 million by 2020, making it the third largest megacity after Beijing and Mumbai.

    He stated: “Water demand by 2020 will be 733 million gallons per day. This is why the government has developed Lagos Water Supply Master Plan as a road map and employed pragmatic approach by building more waterworks and expanding reticulation across the state to guarantee water supply to every home. The government has started the building of Adiyan Phase II of 70 million gallons per day. It will be completed by the end of the year.

    “Negotiation is on with investors on the construction of 100mgd Odomola Water Scheme Phase I. When completed, water will be in abundance in the state. I urge those involved in illegal water supply and vandalism of water pipes to desist. This is not safe, as experience has shown that illegal connections and uncertified water source lead to cross contamination in water and result in water-borne diseases, such as gastric-flu that may lead to cholera, diarrhoea, among others.

    “We advise the public to report anyone engaged in illegal connections to water mains through the LWC help line or customer care line: 07015973012 or our email: info@lagoswater.org.  Supply of potable water to every home in Lagos is a pact the government has signed with Lagosians, and the Governor Akinwunmi Ambode administration is committed to that pact.”

  • We lost N697.9m to fuel supply, by marketers

    About N697.9 million has been lost by marketers because the Pipelines Products and Marketing Company (PPMC) has not supplied them fuel in the past three months.

    The marketers, under the aegis of the Independent Marketers Association of Nigeria (IPMAN), said the loss was the difference  between the price they bought products and the recommended price.

    The marketers, at the peak of the fuel scarcity, said they bought fuel at N120 per litre, against the pump price of N86.50 per litre.

    They said they incurred a loss of N33.50 on a litre amounting to  N697.9 million.

    On behalf of the marketers, the Managing Director, Ogbos Petroleum Limited, Mr Chigozie Nwozuzu, said marketers have  paid N2.5 billion into the Single Treasury Account(TSA) for the purchase of 20.8 million litres between February and April 2016, adding that they were yet to be supplied  fuel by the PPMC.

    The marketers who have not  been supplied fuel, he said, are about 300, adding that many of them have sacked their workers to survive.

    He said: “Independent marketers, though not all, have not been able to get fuel, after making payments for the product. Marketers have lost N33.50 each on a litre of fuel and N697.9 million on the aggregate. The loss came from the disparity between N120 marketers paid per litre and the pump price of N86.50 per litre.  Marketers have paid N2.5 billion into the Treasury Single Account, in line with the Federal Government’s directive that marketers must pay into that account to buy petroleum products.‘’

    According to Ogbos, the failure of the PPMC to supply them fuel made his outlets in Mbala Isuochi in Abia State and many others in the state, not to have fuel.

    He said about 7,000 tickets were given to marketers as evidence of payment for fuel by the PPMC, adding that they were yet to get fuel.

    The Managing Director, FAGON Oil and Gas Limited, Mr Adubuola Victor, said the marketers had suffered social and economic losses to fuel scarcity, stressing that some died while waiting for fuel at Apapa, Lagos.

    His outlets in Akure, Ondo State and others in the Southwest region, he said, do not have fuel. He urged the Federal Government to wade into the matter, with a view to helping marketers get the product.

    An official of PPMC, who wished not to be mentioned, said the agency was investigating the matter.

    ‘’We cannot speak on the issue of non-supply of fuel to marketers by the PPMC. We are investigating the matter; and, at the appropriate time, we would make our findings known to the public.’’ he said.

    IPMAN National President Mr Chinedu Okoronkwo said the body was working to find solutions to the issue.

    He said IPMAN would,  by the end of the week, have resolved the problem between its members and the PPMC.

  • NUPENG threatens to stop fuel supply over salary

    NUPENG threatens to stop fuel supply over salary

    The lingering fuel scarcity may continue, if the over 300,000 petrol attendants in the country do not get a pay rise, The Nation has learnt.

    The National Union of Petroleum and Natural Gas Workers (NUPENG) has threatened to down tools in sympathy with the petrol attendants.

    Industry sources said Petroleum Tanker Drivers (PTD), an arm of NUPENG, planned to embark upon a strike if an agreement is not reached over the N18,000 minimum wage being proposed for the attendants.

    Confirming this, the Zonal Chairma, Southwest, NUPENG,  Mr. Tokunbo Korodo, said tanker drivers might go on strike to identify with the petrol attendants on the issue.

    The inability of stakeholders to reach a compromise, he said, has slowed discussions on the issue.

    According to him, petrol dealers are the ones working against the agreement reached on the payment of the minimum wage, not marketers.

    Korodo said efforts to get the dealers to understand the predicaments of the petrol attendants and further increase their salaries have proved abortive.

    He said: “Discussions are ongoing on the issue of increasing the emoluments of petrol attendants and others working at fuel retail outlets across the country. Several meetings have been held on the issue because we believe that the workers’ welfare must be improved.  We are going to mobilise our members, especially tanker drivers, to go on strike. If the dealers are not ready to acquiesce to our demands,we would order our drivers not to provide fuel to stations that are being run by dealers.”

    He noted that through this, NUPENG would achieve its aspirations of providing better remuneration for petrol attendants.

    Also, the National Chairman, PTD NUPENG, Mr. Akanni Oladiti, said efforts were being made to reposition the downstream sector of the oil and gas for growth.

    He said petrol tanker drivers were being trained to be professionals, adding that the training would be nationwide.

    He said many drivers would be trained in areas, such as safety, among others.

    NUPENG and other bodies involved in the agitation for improved package for the attendants fixed last February for the implementation of the scheme.

    With February gone and no solution in sight, NUPENG is threatening strike.

  • Fuel supply: Osinbajo, PETAN back modular refineries

    Fuel supply: Osinbajo, PETAN back modular refineries

    •Let private investors run refineries

    The Vice President, Professor Yemi Osinbajo, has endorsed the building of modular refineries to solve the recurrent fuel scarcity in the country.

    He spoke at the two-day 2016 African Modular Refinery seminar in Lagos. Osinbajo, who was represented by Ambassador Jide Olu, in his goodwill message, highlighted the need for modular refineries, noting that they will not only address the fuel scarcity problem but move Nigeria away from being a net exporter of crude oil to a big producer and net exporter of petroleum products.

    He said there was no better time to start than now because of changes in the global oil and gas space. Rather than merely extracting crude oil and exporting it and importing finished products, Nigeria should take full advantage of the oil and gas sector by refining crude and exporting it. That will mean full use of the oil and gas resources, he added.

    He said: “The advent of shale oil and gas is a technological revolution that has changed the oil market, moving to an era of long low oil prices. We, therefore, need to add value to our oil and gas resources to remain competitive.

    “It is in this regard, the Federal Government will prioritise the adoption and execution of a National Oil and Gas Master Plan later this year,” adding that Nigeria and Africa should think of modular refinery in the content of regional value gains and market sizes since production is increasingly coordinated across various geographical locations.

    The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mr. Bank-Anthony Okoroafor, also agreed with the Vice President on the need to build more modular refineries to enable self-sufficiency in fuel production.

    Okoroafor urged the Federal Government to allow the four refineries it owns to be run by private investors to make them operate and produce optimally.

    In a chat with reporters, he said government has no business running refineries but to make policies that would drive business activities. “Refinery business is a business on its own. Governments do not run such businesses. It was good at the initial stage for government to kick-start such investments and be able to build capacity.Government has no capacity to run refineries,” he said.

    The PETAN chief criticised giving jobs in onshore and swamp terrains to foreign oil companies when competent indigenous companies are available. He said that the association is keen to achieve value added local content to Nigerians.

    He said PETAN’s goal is to bring jobs hitherto exported to other countries back to Nigeria, create a hub for oil and gas service in-country. He said before now, Nigeria loses $380 billion and two million jobs to capital flight on oil and gas service jobs.

    He said there is a Nigerian Content Law, which states that 100 per cent onshore, swamp jobs should be given to Nigerian companies.  “So any job that can be done by PETAN company or by a competent Nigerian  should not be given to somebody outside the country, it is criminal,” Okoroafor said.

    However, where there is skills gap, PETAN encourages alliance with foreign companies, primarily to grow capacity. He said at the height of militancy in the Niger Delta, expatriates fled the region while indigenous companies’ workers continued with the jobs without fear of being kidnapped.

    “Nobody can develop our country better than we can do. But anywhere that the capability does not exist in the country, anybody can do the job. But where the capability exists, it has to be done by the  Nigerian company,” he said.

  • Power supply in more danger as Ikeja Electric exits talks with Labour

    The epileptic power supply will be further threatened as Ikeja Electric (IE), which distributes power to the bulk of Lagos Mainland, at the weekend discontinued talks with Labour.

    The company and workers agreed to the talks as a way forward after last month’s strike following disengagement of workers. The strike completely crippled power supply in the country’s economic capital.

    Yesterday, the company said it had discontinued the talks because “the negotiation was tending towards a proposition that would jeopardise transparency, employee performance and service excellence to customers.”

    Last month, Labour picketed the electricity distribution company for three days over the disengagement of workers who failed to meet the company’s performance objectives and were deemed to be performing below standard. However, the picketing was suspended after Ikeja Electric reached an agreement with the National Union of Electricity Workers (NUEE) and the Nigerian Labour Congress (NLC) to set up a committee to review the performance appraisal and competency assessment process.

    Ikeja Electric’s Head of Corporate Communications, Felix Ofulue, said the company discontinued the talks “due to a clear determination by representatives of Labour to stick to a pre-conceived and irreversible position that the process was flawed. Therefore, the review process was an exercise in futility.

    “Rather than engage in an objective and constructive review of the whole appraisal process which is tailored in line with global best practices, Labour preferred an arbitrary review in which reduced criteria would be applied to certain selected employees who are members of the union”.

    He added: “The performance review process was classified into four stages, clearly detailing steps to be taken at each stage. However, Labour, without taking any of these steps into consideration and any justifiable rationale, insisted the process was flawed and demanded that Ikeja Electric must recall all disengaged staff.

    “While we remain committed to upholding best human capital processes and stakeholder engagement in fostering excellence in the workplace, there are indications that the propositions of certain actors in the negotiation process are against our resolve to provide improved services to our customers and are fixated on jeopardizing our overall interest to move the industry forward so we had no choice but to withdraw in the interest of our consumers”.

    Ofulue said since the electricity sector had suffered great setback for many decades because of mismanagement, it is time to focus on applying quality human capital to salvage the situation.

    The Ikeja Electric called for restraint to avoid the crippling electricity shutdown that accompanied last month’s strike

    He said Ikeja Electric would resist “any attempt to allow its customers go through another harrowing outage ordeal,” saying that the company will not hesitate to seek redress at the Industrial Court should Labour’s action “worsen the power situation which over the few weeks have been dismal due to grid challenges and gas shortage.”

  • ‘NLNG can exceed 350,000MT yearly supply ’

    ‘NLNG can exceed 350,000MT yearly supply ’

    Nigerian Liquefied Natural Gas (NLNG) can surpass its yearly supply of 350, 000 metric tonnes (MT) of LPG, its Manager, Marketing and Development, Abdulkadir Ahmed, has said.

    He gave this hint at a stakeholders’ forum in Lagos.

    He said NLNG has not only supplied over 700,000 MT since inception, but can also exceed its annual supply of the product provided the market can absorb it.

    He said the gap between the demand and supply of the product was not caused by NLNG but by institutional bottlenecks occasioned by delay at the terminals where LPG is being discharged among other factors.

    Also, the President, Liquefied Petroleum Gas Association of Nigeria (LPGAN), Mr. Dapo Adesina, said NLNG could supply as much as one million tonnes of LPG, provided the market can accommodate it.

    He said the occasional scarcity of LPG, otherwise known as cooling gas, in the market was not as a result of low supply from the NLNG, but delay in the delivery of the product at the terminals.

    He said NLNG’s terminals were approved by the Federal Government to discharge LPG, and that two are actually providing the service.

    Adesina said vessels bringing LPG to Lagos from NLNG’s base in Port Harcourt, Rivers State, were sometimes delayed for days at the terminals for one reason or the other.

    He said the North Oil Jetty (NOJ) was directed by the government to give priority to Premium Motor Spirit (PMS) in order to ease fuel scarcity, noting that the issue has prevented LPG vessels from discharging their content as at when due.

    Adesina said the fact that some companies are importing LPG from Niger Republic and other countries does not mean that Nigeria cannot meet local demand for the product.

    “As far as I’m concerned, Nigeria has huge gas potentials in the world, and to meet the domestic demand of LPG is not a problem in the country,” he added.

  • Kachikwu directs petrol supply for Christmas, New Year

    Kachikwu directs petrol supply for Christmas, New Year

    •PPMC injects additional volume of fuel

    Minister of State for Petroleum Resources and Nigerian National Petroleum Corporation Group Managing Director Dr. Ibe Kachikwu has directed the Pipelines and Products Marketing Company (PPMC) and Petroleum Products Pricing Regulatory Agency (PPPRA) to embark on renewed special supply intervention measures to ensure availability of petroleum products ahead of the Yuletide and beyond.

    The NNPC, in a statement, said the special supply intervention mechanism, which entails the ramping up of additional supply via massive truck-out to guarantee product penetration to the nooks and crannies of the country started over the weekend.

    The corporation stated that daily fuel truck out to locations such as Abuja, Kaduna, Kano, Enugu, Ibadan and Jos have been increased significantly to enhance free flow of products across the country.

    The NNPC stated that it was consolidating its strategic alliance with some major depot owners and oil marketers with strong regional logistics outlay in those areas to ensure maximum infiltration of products, especially in the hinterland ahead of the Christmas and New Year festivities.

    Calling on the public to refrain from hoarding, product diversion and panic buying of petrol, the corporation noted that the intervention measure would help circumvent the challenges posed by the unavailability of pipelines for the transportation of petroleum products.