Energy
TCN is working to further expand the nation’s grid
The Transmission Company of Nigeria (TCN), a power utility positioned by the Federal Government to advance operations in the private-led power sector is no doubt living up to its mandate.
TCN is at the middle of the power sector value chain, carrying out the pivotal role of evacuating power from Generation Companies (GenCos) to the Distribution Companies (DisCos) nationwide.
Although there are calls in some quarters seeking a state of emergency in the power sector, it should be noted that TCN is implementing projects in line with its transmission expansion plan aimed at systematically expanding the grid network.
Today, a visit to TCN Work Centers and a simple monitoring of operations of TCN will reveal huge information about how the capacity of the national grid has improved under the administration of President Muhammadu Buhari, especially with the record of four all-time peak in the sector in 2020, and two recorded in January 2021, so far.
For the purpose of clarification, TCN does not distribute electricity to electricity consumers and cannot also switch off consumer feeders. Its jurisdiction on the network is from 330 kilovolt (kV) to 132kV power lines. The company cannot switch off consumers feeders as it is not within TCN’s jurisdiction.
The fact is that electricity cannot be stored; therefore, power generation, transmission and distribution occur simultaneously. What determines what is put on the grid, is what the distribution companies are ready to off-take, this equally regulates what the generator would generate, which is why the DisCos are required to nominate what they would off-take a day ahead.
It is important to note that whatever happens on the downstream network, impacts on transmission and generators. The TCN grid network has the capacity of 8,100MW even as it continues to work towards completing ongoing projects to further increase its capacity.
The National Control Centre (NCC), an arm of TCN, is responsible for ensuring grid stability and its dispatch instructions are guided by the Grid Code, which it strictly adheres to, with clear understanding of consequences to the nation’s grid.
That notwithstanding, it would be wrong to attribute most localized outages and load-shedding of consumers feeders to TCN. Discos can only off take what is generated, while Gencos can only generate what Discos can off take. Each of the 11 DisCos has its own challenges which may necessitate outage in certain places per time.
Under Abuja Region of TCN, Gwagwalade-Karu line does not exist as has been mentioned in some quarters. There is no direct link between Gwagwalada and Karu Transmission Substation.
On the Gwagwalada – Apo line however, there is a tee-off on the line which feeds Kukwaba Transmission Substation through Apo Transmission Substation. TCN does not have any problem at its Kukwaba or Apo Substation that would require cutting supply to any of Abuja DisCo feeders.
Electricity customers are connected directly on 33kV lines which TCN operators have no control over, except during extreme emergency requiring operations crew to quickly open such feeder to enable maintenance service.
At the 2x60MVA Karu Transmission Substation, all the feeders are set based on the load demand and nomination presented by AEDC on a daily basis. Journalists who may wish to undertake an on-the-spot inspection to the station, would find that none of the breakers is in bad shape.
The 20MW Feeder K4 at Karu Substation is never overloaded as insinuated in some quarters. Between the Karu Transmission Substation and the injection substation belonging to Abuja DisCo, there is a line load of over 12MW. Off-taking 12MW through an 11kV Distribution feeder for onward delivery to customers, is the responsibility of AEDC not TCN.
It is a fact that TCN has pockets of challenges as with every other participant in the value chain, but that should not translate to misinformation of the public by anyone who would rather ignore the facts.
There have been repeated vandalism of major TCN transmission lines in recent times, which TCN promptly repairs any time it occurs. While working with security agencies to help monitor the lines, it’s important to note that vandalism is a social menace, we do not have control over the cable thieves but TCN is doing all it can to combat it with the help of security agencies and staff of the TCN lines patrol department.
It would interest the public to know that between 31/10/2019 to-date, Abuja Sub-region of TCN witnessed 21 acts of vandalism on 330kV and 132kV aluminum conductors by unknown persons and on each occasion TCN has promptly replaced or repaired the lines. The extent of damage on each line determines the length of time it would take to complete repairs. Presently the system lines maintenance crew of Abuja Region are replacing 2000 metres of 350mmsq aluminum steel reinforced conductor on Gwagwalada-Westmain 330kV Double Circuit (DC) vandalized by unknown persons. To say that incidents of vandalism are mere excuses is very worrisome.
TCN hereby appeal to all to be more vigilant in assisting it in the fight against power equipment vandalism.
In Kubwa Substation, one of the 60MVA power transformers which developed fault was taken out for repairs, meanwhile, a replacement was procured late last year, and is to be delivered to the substation anytime from now. Meanwhile the second transformer in the substation is transmitting at full load (42MW), which can adequately take care of the load requirement for Kubwa axis and environs.
TCN is also implementing the Abuja ring project which is at various stages of implementation. The project which involves the addition of five (5) new substations and two major transmission lines are equally ongoing. Anyone familiar with transmission projects execution would know that the projects take between 3 to 5years or more, to complete depending on the scope of the project. This is the project that will solve transmission constraints in Abuja totally.
TCN does not buy refurbished or undersized transformers. All transformers are procured through due process approved by Bureau of Public Procurement (BPP) and transformers procured must fulfill international standards (IEC, KEMA etc), in line with procurement guidelines.
TCN in recent times has taken a more responsive approach serving the GenCos in its upstream and the DisCos in its downstream. TCN is optimizing its available resources to better serve the DisCo and Gencos through effective maintenance of the existing grid network while applying best practices in completing ongoing low hanging fruits project to improve the overall grid capacity.
This approach paid off quickly as evidenced in the multiple all-time peak generation recorded in the sector on the following days within the last six months, 5377.8MW on 1st of August 2020 at 20:30hrs, 5,420.30MW on August 19, 2020 at 19:15hrs, 5,459.50MW was achieved on the 28th of October, 2020 at 20:15hrs and two days later on the 30th of October,2020, the Nigerian Grid network recorded yet another all-time peak of 5,5020.40MW, and all these were seamlessly transmitted through the transmission grid.
The Transmission Company of Nigeria on Wednesday 6th January, 2021 and Thursday 7th January 2021 recorded yet another all-time peak of 5,552.40MW and 5,584.40MW. This is an uncommon record in the Nigerian power sector. This consistency and regular incremental improvement in Grid Performance on TCN’s part is an indication of the professionalism and best practices that was brought in by the new Management in TCN.
To better serve the 11 DisCos, TCN has entered into a Service Level Agreement (SLA) with the DisCos. To ensure proper synergy and effective service delivery via identification and execution of projects to further improve the grid and deliver quality electricity to consumers across the country.
The management of TCN reiterates its commitment towards further improving the national electricity grid as it continues to diligently implement its grid expansion programme with projects which are at various stages of implementation, from the reconductoring of the Ikeja West – Sakete transmission line, reinforcing the Ugwuaji to Apir Transmission line, among other numerous projects spread across the nation.
… launches an ambitious plan to plant 10 million special trees to Offset Tons of Carbon Emissions
Women In Energy Oil and Gas (WEOG) officially announced September 3 as World Decarbonisation Day. As part of the Decarbonization Initiative, WEOG plans to plant over 10 million special trees that have higher rates of carbon absorption.
Oladunni Owo, National President of WEOG in Nigeria and CEO of Blackgold Energy Authorities made the declaration during the Decarbonization Initiative Press Conference on Tuesday in Abuja.
WEOG is a forum created to promote gender diversity and inclusion in the male-dominated energy, oil, and gas industry in Nigeria.
Speaking on the theme “Collaboration, Innovation, and Action for a Low Carbon Oil & Gas Industry,” Owo noted that despite advancements in human investments and industrialization, there is more carbon in the atmosphere than is sustainable for human life.
She said, “Suddenly, we started hearing words like the depletion of the ozone layer, global warming, and carbon pollution and emissions.”
She explained that decarbonisation is a process where carbon can be converted, stored, captured, and sequestered, keeping it within the oil well or underground so it does not escape into the atmosphere.
“With decarbonisation, our energy oil and gas resources can still be very useful. Our research also showed that oil and gas are not just about fuels (petrol, diesel, DPK, and other forms of fuels).
“Oil and gas are also about fertilizers, polyester, rubber, petrochemicals, and several other products that are not necessarily fuel.”
She further stated that the decarbonisation agenda of WEOG focuses on making the exploration and production of oil and gas clean to minimize environmental impact.
Owo said, “The solution is decarbonisation, and currently, ongoing research on how this can be achieved shows that the simplest and most achievable method is tree planting.
“These activities can be carried out by everyone, including the high and mighty.”
Owo emphasized that in Africa and Nigeria, there is a significant energy gap, so a diverse range of energy resources, including solar, wind, hydrogen, nuclear, and gas, is needed to close these gaps.
This is why WEOG is initiating the concept of bringing decarbonisation to the forefront.
“We want to elevate this to another level and let it become another Conference of the Parties (COP), spreading from Nigeria to other parts of the world,” Owo said.
Regarding World Decarbonisation Day, Owo stated that WEOG initially picked June 24, 2024, but due to interest from various groups, including international bodies, an unveiling was done in Houston, Texas, during the recently concluded OTC.
Following this, the President of Nigeria also showed interest, leading to the selection of September 3, 2024, as the official date.
President Bola Tinubu is expected to make the main declaration, and September has been declared Decarbonisation Month, with Decarbonisation Week from September 3 to 5 in Abuja.
Owo has therefore invited stakeholders, industry experts, and potential partners to join and support WEOG in the advocacy.
She also confirmed that WEOG has initiated the National Decarbonisation Park.
Prince Nwosu also spoke, encouraging women in the oil and gas field to embrace the initiatives and visions of WEOG.
“It cannot be well if you are not aware,” he said, urging women to sustain the advocacy about climate change and its impact.
By Ibrahim Musa
The Federal Government has emphasised production bonus, which refers to the payment by an operator to a host country upon achievement of oil and gas production, as a strategy for attracting investors to bid for Nigeria’s oil blocks.
Previously, the government relied on a high signature bonus, which refers to a single, non-recoverable lump sum payment made upfront by oil companies for their rights to develop oil blocks, as an option for maximising revenue generation, thus discouraging investors with limited resources from bidding.
Currently, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC which regulates activities in the nation’s oil and gas industry, has removed all entry barriers to attract massive investments.
This strategy aims at growing oil and gas production, enhancing Nigerian Content Development, attracting Foreign Direct Investment, contributing to long-term global energy sufficiency, expanding opportunities for gas utilisation, and creating employment opportunities while adding value to government and investors.
This is based on the Commission’s consideration of developments around the world, especially the sustainable rise in Capital Expenditure, CAPEX, going into funding renewables in the spirit of the global energy transition as well as the level of Signature bonuses in other nations.
In the Middle East and North Africa, the signature bonus currently stands at about $10 million while Thailand and Indonesia have about $3 million (minimum) and N1.5 million, respectively, meaning that Nigeria’s oil and gas landscape is now in alignment with the rest of the world.
This means that Nigeria will be able to complete many projects, leading to the creation of many multiplier effects, including production capacity, employment, contracts, community development, local content and gas-to-power, thus providing more energy to households and businesses nationwide.
Consequently, the NUPRC has been widely commended. The Executive Chairman, African Energy Chamber, NJ Ayuk, said, “Nigeria has established a robust framework that is set to attract foreign exploration companies with modernised fiscals that are competitive for deepwater exploration. We the AEC believe the most lucrative balancing point between creating a welcoming environment for international companies and achieving Nigeria’s own national goals is important.”
“Key to this bidding round will be the role of independents and indigenous players when it comes to exploration. The bidding round also paves the way for gas monetisation that will bring amazing benefits to Nigeria and also international markets.”
Similarly, the Executive Director, Emmanuel Egbogah Foundation for Petroleum, Prof. Wumi Iledare, said: “A high signature bonus is regressive. It does make a petroleum province with a high signature bonus less attractive.”
On his part, the National President, Oil and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “Investors need a conducive environment to put their money. Once the right environment exists, foreign capital will begin to flow in.”
Also, speaking at the recent pre-bidding conference in Lagos, the Commission Executive, NUPRC, Engr. Gbenga Komolafe, said: “A review of Welligence Energy Analytics reports on Licensing rounds across the globe including Brazil, Guyana, Angola, Middle East, North Africa, SouthEast Asia, etc, revealed that the era of huge front-loaded signature bonuses is over.
“Accordingly, Nigeria under President Bola Ahmed Tinubu, as the Minister of Petroleum Resources has proactively and intuitively vacated barrier to entry for investment in exploration blocks being offered, in both the 2022 deep offshore bid round and the 2024 licensing round, in line with international best practices.”
“President Bola Ahmed Tinubu and Minister of Petroleum Resources, Nigeria have embarked on a transformative agenda that aligns with the most stringent global standards and commitments. The recent Presidential Executive Orders issued in March this year, aimed at improving the efficiency and attractiveness of Nigeria’s oil and gas sector, were generously targeted to incentivize oil and gas development, introduced measures to balance the implementation of Nigerian Oil and Gas Industry Content Development Act, 2010 to ensure that oil and gas development is not hindered by local content bottlenecks. The Executive Orders also include directives on the reduction of contracting costs and timelines to enhance the global competitiveness of our oil and gas industry and achieve a higher rate of return on oil and gas investments.
“Nigeria is endowed with abundance of Crude Oil and Condensate Reserves and of Natural Gas Reserves representing above 30 percent and 33 percent respectively of the entire Oil and Gas reserves in Africa aside abundant mix of other renewable energy resources. In a bid to exploit and optimise these abundant Hydrocarbon resources, Section 7(t) of the Petroleum Industry Act (PIA) empowers the NUPRC, the Industry Regulator to conduct bid rounds for the award of PPLs and PMLs under the Act and applicable Regulations.”
“It is on this premise that the Federal Government of Nigeria through the NUPRC recently announced the commencement of the 2024 Licensing Round both in-country and outside the shores of the nation. It would be recalled that we commenced the announcement at the maiden edition of the NEITI Dialogue Session, 2024, where the bid processes were thoroughly interrogated by civil society and the media.”
“This was subsequently followed by the announcement of the commencement of the bid round at the 2024 OTC in Houston, the roadshow in Miami organised by Zeste Advisory, African Energies Summit in London organised by Frontier Network and Invest in Africa Energy Summit in Paris organised by Energy Capital Power. The Commission aims to project and attract robust local and foreign investors who will be participating in the bid exercise.
“The NUPRC on behalf of the Federal Republic of Nigeria is committed to conducting the licensing round in a fair, competitive and transparent manner and ensuring a level playing field for both indigenous and international investors. Our approach is underpinned by the robust legal framework of the Petroleum Industry Act 2021(PIA), which ensures compliance with best practices to boost investors’ confidence.
“In keeping with the provisions of the PIA and regulations made under the Act, the Commission has issued a licensing round guideline and published a licensing round plan for the blocks. This round introduces some meticulously selected blocks across diverse geological spectra from the fertile onshore basins to the promising continental shelves and the untapped depths of our deep offshore territories. Each block has been chosen for its potential to bolster our national reserves and stimulate economic vitality. Subsequently, on 13th May 2024, the Commission opened a dedicated bid portal to allow prospective bidders to register/submit Pre-Qualifications documents on or before the stipulated 25th June 2024 deadline.”
He also said: “Interestingly, the Commission, in partnership with its multi-client partners, has acquired more geological data resulting in the identification of more prospective blocks. The newly identified blocks will be added to the pool of blocks originally scheduled for the bid exercise, and their details will be made available on the bid round portal.”
“In addition to these blocks, the seven deep offshore blocks from the 2022 Mini-Bid Round Exercise which covers an area of approximately 6,700 km in water depths of 1,150m to 3,100m shall also be concluded along with this Licensing round.”
Ibrahim Musa is an Energy Analyst
…As NCDMB unveils procedures for implementation of Presidential directive on Local Content
By Olaseinde Gbenga, Abuja
The Petroleum Technology Association of Nigeria (PETAN) has disclosed plans to introduce a seal of quality for Nigerian companies to weed out middlemen frustrating local patronage in the sector.
The Chairman and Chief Executive Officer of Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya made this known at a panel session at the ongoing Nigeria Oil and Gas(NOG) Energy week conference and exhibition in Abuja on Tuesday.
Speaking, the PETAN Chairman said, “The Nigerian content has been a business enabler as it has enhanced local operators to offer services in the oil and gas industry that has hitherto offered by multinationals.”
According to him, in the oil and gas Industry, PETAN is essentially the sponsor of local content law, and in contributing to shape that law, in oil and gas assets in Nigeria.
He noted that Nigerian companies should have first consideration, “and we are happy to see that these opportunities are birthing strategic collaborations by lowering barriers of entry for local operators, retaining millions of dollars’ worth of investment in the country, and building Nigerian brands that work in and beyond Africa.”
The Chairman expressed his grief on ‘middlemen businesses’ that cast shadow on the competencies and integrity of Nigerian oil and gas operators, adding that “PETAN is ready to partner with relevant stakeholders such as Nigerian Content Development and Monitoring Board (NCDMB) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to weed them out through the introduction of a PETAN’s seal of quality with international recognised certification company to serve as additional layer of authenticating those listed on the Nigerian Content Development and Monitoring Board (NCDMB’s) NOGIC JQS portal and Nigerian Upstream Petroleum Regulatory Commission (NUPRC’s) National Data Repository.”
Echoing similar sentiments, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe hailed the Presidential Directive on Local Content Compliance Requirements as crucial for enhanced competitiveness and mitigation of risks in regard to unqualified contractors, just as he unveiled five focal areas for implementation of the policy initiative.
The Executive Secretary spoke at the Nigerian Content Seminar, the opening day of the Nigerian Oil and Gas (NOG) Energy Conference, in Abuja.
The NCDMB boss listed the areas as ‘Promoting the Utilisation/Growth of In-country Capacities,’ ‘Enhancing the Cost Competitiveness of Oil and Gas Projects,’ ‘Non-inclusion of Intermediary Entities Lacking the Essential Capacity to Perform from the Nigerian Content Plan (NCP),’ ‘Approval of Nigerian Content Plan (which consists of contractors that meet the legal definition of Nigerian companies and demonstrate capacity to execute projects within Nigeria),’ and ensuring that ‘Entities acting solely as intermediaries, with no demonstrable capacity to execute the project or activity, shall not be approved.’
Engr. Ogbe assured that under the first focal area, ‘Promoting the Utilisation/Growth of In-country Capacities,’ “the Board would continue to leverage its existing processes “to assess and verify the capacity of companies, facilitating and carrying out in-country capacity audits in collaboration with all relevant stakeholders.”
On enhancement of cost competitiveness of oil and gas projects, he said, among other activities operators in the oil and gas industry would only be permitted to source capacities out-of-country “only after in-country capacity gaps have been identified.”
In regard to the third focal area, namely, ‘Non-inclusion of Intermediaries Lacking the Essential Capacity,’ Engr. Ogbe stated that the “Tender opportunity’s pre-qualification and technical evaluation phases” would be used to eliminate entities so identified as incapable of performing.
Explaining the Board’s procedure in respect of ‘Approval of Nigerian Content Plan (NCP),’ he noted that international players’ participation would be deemed appropriate only “when the necessary Nigerian Content level is unavailable locally or inefficient.”
While assuring that entities acting solely as intermediaries with no demonstrable capacity to execute a project would not be approved, he reiterated that the Board remains “steadfast in its dedication to guaranteeing that any services provided will generate value in the country,” and that it would “evaluate current policies and guidelines to encourage the development of indigenous capabilities and guarantee that these policies and guidelines are not misused, misapplied, or misinterpreted.”
In all, he observed with satisfaction that the Presidential Directive and the Board’s modalities are in sync with the objectives of its 10-Year Strategic Roadmap, which aims to increase Nigerian Content to 70 percent by 2027.
Among recent landmark accomplishments of the Board, as identified by the NCDMB boss, were the inauguration of Amal Technologies Gas Leak Detection Device and Printed Circuit Board Manufacturing facility in December 2023 in Abuja, the commissioning of the Kwale Gas Gathering (KGG) Hub and NEDOGAS Plant in June in Delta State, and the Final Investment Decision (FID) on the Ubeta Field Development Project by TotalEnergies Exploration and Production Nigeria Limited and its Joint Venture partner, Nigerian National Petroleum Company Limited.
Engr. Ogbe seized the occasion to congratulate winners and participants in the Golf Tournament organised as part of the NOG Energy Week. The golf tourney is sponsored by the NCDMB and the Executive Secretary emphasised that the event is an excellent platform to provide clarity, expositions, tips and guidance to industry players on the provisions of the NOGICD Act.
Speaking during one of the breakout sessions, the Director of Projects Certification and Authorization Certificate (PCAD) at the NCDMB, Engr. Abayomi Bamidele explained that NCDMB had enabled oil and gas through its policies, collaboration and investments. He indicated that about 1000 Nigerian service companies were registered on the NOGIC JQS in 2011, but the number had increased to 13,000, while the number of operating companies had equally increased to 120 firms.
He charged service companies to only accept jobs they have the technical capacity to execute, and to eschew the practice of bidding for every job in the oil and gas industry. He also emphasised that Nigerian Content is not a major cost driver in Nigeria, noting that other elements like security and managing community stakeholders are big cost drivers.
In his contribution, the General Manager, Planning Research and Statistics, Mr. Silas Omomehin Ajimijaye affirmed that subsequent legislations enacted in the oil and gas industry after the Nigerian Oil and Gas Industry Content Development (NOGICD) Act had reinforced the NOGICD Act.
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