Energy
FG’s gas utilisation to take NIPCO to next level — NIPCO MD tells shareholders
…As President Tinubu pledges to partner with gas investors
NIPCO PLC, an integrated Oil & Gas company has lauded the Federal Government’s efforts in deepening gas utilisation in the country in consonance with global energy transition.
The renewed vigour in the direction of the gas realm would buoy the aggressive usage of gas in the country, improve infrastructure and attract more investors to the development of Nigeria’s gas industry.
The Managing Director of NIPCO PLC, Suresh Kumar disclosed this in his address to shareholders at the company’s 19th Annual General Meeting (AGM), held at the Abuja Continental Hotel.
Kumar explained that the government has done well and should be commended for its efforts in deepening gas utilisation in Nigeria.
The Managing Director noted there is still a need for more concerted efforts in the areas of infrastructure by stakeholders in the industry to guarantee access to the products at ease.
According to him, operators have based their hopes on the speedy completion of the Abuja-Kaduna-Kano (AKK) gas pipeline and the subsequent connection of more cities to the gas pipeline across the country.
While speaking on NIPCO’s daunting efforts in the industry and indeed gas sector, the NIPCO’s helmsman today the company’s shareholders that, “It is worthy of note with its wholly owned subsidiary, NIPCO Gas Limited (NGL). The company has continued to deepen domestic gas utilization through access to both CNG for auto use and piped natural gas for industrial usage.
“It has constructed and laid over 100 kilometres big gas pipeline and currently in Lagos – Ibadan expressway linking Ogun State to its neighbouring Oyo State via gas pipeline.”
According to him, NIPCO Gas Limited (NGL) embarked on the construction of three CNG refill stations in the Federal Capital Territory (FCT) and environs in 2022 to facilitate access to gas by motorists and other end users.
He equally informed that these two of the stations are almost ready in the FCT with the Abuja airport road station servicing the newly inaugurated mass transit buses for civil servants in the territory among other motorists.
“NGL is entrenching its presence across the federation encouraging a switch to natural gas by motorists and industries as a preferred energy source through massive investment in infrastructure to improve access.
“It is also a stakeholder in the Federal Government National Gas Expansion Program with her footprints in several states with conscious plans to cover the entire country soonest,” he added.
Despite the challenges associated with gas infrastructure, the MD told the teeming shareholders, “Our dear company has been able to pull through with a modest performance that has contributed to guaranteeing a good return on your investment. Our company will continue to act in concert with its peers in the industry to achieve energy security for Nigeria.”
While reviewing the company’s 2022 performances, he hinted, “Our performance in 2022 was mainly on a long-term growth strategy that was anchored on prudent management of resources, cost optimisation, teamwork and unflinching support of the Board of Directors.”
On human capital development, Suresh affirmed that the human capital element of the company will continue to elicit management positive attention even in the face of economic challenges that are fast affecting the standard of living nationwide.
According to him, “My management team, with the kind support of the Board will continually improve the lots of the workforce which in turn, we are sure will impact favourably on productivity.”
On the company’s outlook, Kumar stressed, “I am upbeat about the future of your company. My optimism is predicated on the strategic investment plans being marshalled by my management team with the purposeful direction of the Board.”
He noted that the unwavering commitment of the workforce is a good pointer to more glorious years of operations ahead.
While praising the company’s board of directors and shareholders, the NIPCO boss said, “The Board of Directors of your company have always been a major pillar of support to the management through worthy policy directives in moving the company forward. As shareholders of this company with thousands of others, your support has been two-fold – investors and customers. We will not let you down in the march to take NIPCO PLC to the next level.”
Meanwhile, President Bola Ahmed Tinubu has pledged his administration’s unalloyed commitment to leverage Nigeria’s gas to develop the fledgling economy.
He stated this at the meeting with the Board and Management of the Nigeria Liquefied Natural Gas (NLNG) Limited at the State House, Abuja.
According to him, plans are afoot to leverage domestic utilisation, processing and international export of Nigeria’s massive gas resources as a transition fuel to catalyze the fundamental restructuring of the nation’s economy for expansive growth during his tenure.
President Tinubu also affirmed that all encumbrances to the entrepreneurial progress and development of Nigeria’s industrious citizens, as well as any further impediments to business practice in the Oil & Gas sector, specifically, will be swiftly removed to create more opportunities for Nigerian companies and international partners to thrive on the natural and human resource bestowed on the nation.
“It is now a collaborative effort in thinking and doing. We will work with all partners to redefine the future of our economy.”
The President told the NLNG delegation, led by NLNG Board Chairman Edmund Daukuru, the natural ruler of Nembe Kingdom and the NLNG Managing Director, Philip Mshelbila.
Also, President Tinubu affirmed the position of natural gas as Nigeria’s gateway to sustainable development and prosperity, pledging to build a partnership with investors that will guarantee job opportunities and skill development for Nigerian youths in the overriding best interest of the oil and gas producing environments.
“It is all about growing the pie so that Nigerians will benefit,” the President said, adding that “skill development will help the many restive youths who need to be carried along and employed. Their lives need to be more predictable and prosperous.
In return, President Tinubu appreciated the difficulties faced by the NLNG, particularly on security, affirming that stakeholders, including the host communities and security agencies, will play more central roles in resolving troublesome points of contention for more peaceful and profitable operations on a sustainable basis.
In his remarks, the Chairman of the Board told the President that the frustrations faced by non-government stakeholders in operations were being collectively shared with the Government and that the communities should play a more significant role in facilitating the situation, noting that issues of trust between investors and host assemblies must be adequately handled with an emphasis on end-to-end process inclusivity.
Protecting and rehabilitating Africa’s natural carbon sinks, such as forests, oceans, coastal mangroves, wetlands and grasslands can significantly aid in mitigating the effects of climate change, Ejiro Gray, Director, Governance and Sustainability, Sahara Group has said.
Speaking at the maiden edition of Asharami Square, Sahara Group’s initiative aimed at promoting sustainability through media advocacy, Gray said that developing intentional policies and investments on protecting the continent’s carbon sinks would enhance carbon sequestration and reduce net emissions.
She said these natural landscapes act as significant carbon reservoirs, absorbing and storing carbon dioxide (CO‚ ) from the atmosphere, adding that developing reforestation and afforestation programs, implementing strict conservation policies, and providing financial incentives for conservation projects are critical for combating climate change in Africa.
According to Gray, Natural Gas Development and Commercialisation, Increase Use of Renewables, investment in low-cost/low emissions clean energy solutions, Carbon Capture Storage/Carbon Capture and Reutilisation are other factors that can help accelerate Africa’s march towards sustainability.
“Natural gas presents a viable opportunity to serve as a transition fuel as Africa continues to gradually invest in renewable energy. It is a relatively clean-burning fossil fuel, producing fewer CO‚ emissions compared to coal or petroleum.
“In 2021, Africa’s natural gas reserves totalled over 620 trillion cubic feet. By developing and monetizing these reserves through processing and eventual usage of CNG, LNG, LPG and other gas products, Africa can leverage its natural gas resources to support sustainable energy development,” Gray said.
Speaking on the role of the media in promoting sustainability, Head, Corporate Communications at Sahara Group, Bethel Obioma, said Africa needs to articulate and promote a robust sustainability narrative that leaves no one behind in issues relating to climate change, energy access and energy transition, among others.
“To achieve this, Sahara Group hopes to make Asharami Square a formidable platform through advocacy and collaboration towards shoring up capacity and participation of all segments of the media to drive accuracy, clarity, impact, positive policy formulation, agenda-setting and collective action,” he said.
Obioma said Asharami Square would feature mentoring, training, exchange programs, facility tours for media practitioners and competitions to recognise and celebrate exceptional reporting of sustainability in the media.
The domestic crude oil supply crisis that recently led to accusations and denials in the oil sector may warrant an investment plunge in the industry, operators declared during the week.
According to operators at the Lagos Chamber of Commerce and Industry, the crisis may damage the confidence of International Oil Companies and investors in refineries.
This came as a section of the 650,000-capacity Dangote Petroleum Refinery caught fire on Wednesday, sparking reactions on social media as videos of the incident went viral.
The management of the facility, however, allayed fears about the incident, as it stated that the situation had been put under control, adding that no one was harmed by the fire outbreak.
Meanwhile, the LCCI charged the Federal Government to prevent any form of blackmail and victimisation of IOCs and local refiners by quickly resolving the issues around oil supply contracts, higher crude cost in Nigeria above international prices, and the cost of logistics.
The Director-General, LCCI, Chinyere Almona, disclosed this while responding to enquiries by our correspondent on the views of IOCs concerning the recent accusations against them by a senior official of the Dangote Petroleum Refinery.
IOCs operating in Nigeria such as Shell, ExxonMobil, TotalEnergies, and Nigeria Agip Oil Company, among others, are under the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry.
This came as modular refinery operators demanded the intervention of the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, in the lingering domestic crude oil supply crisis.
“Since the issue around crude supply to the Dangote refinery and the IOCs, the chamber has consulted with some relevant parties. While these consultations continue, we call on the government, as the regulator, to provide a detailed report on what the key issues are and what it intends to do to resolve these issues.
“This came as modular refinery operators demanded the intervention of the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, in the lingering domestic crude oil supply crisis.
“Since the issue around crude supply to the Dangote refinery and the IOCs, the chamber has consulted with some relevant parties. While these consultations continue, we call on the government, as the regulator, to provide a detailed report on what the key issues are and what it intends to do to resolve these issues.
“This is critical as uncertainties like this can be a disincentive to potential investors in the oil and gas sector. The regulatory agency (NUPRC) must show the capacity to resolve issues about protecting investors’ interests. The investors here are the Dangote refinery and the IOCs,” Almona stated.
Modular refiners are, of course, investors in the midstream arm of the oil and gas sector, as the LCCI DG had earlier told our correspondent that the chamber had championed calls for the provision of crude to operators in this space.
Continuing in her response on Wednesday to the recent crude supply concerns between IOCs and the Dangote refinery, she added, “Crude oil is an international commodity traded on open trade terms in the global markets.”
“Still, we can resolve these issues to prevent any form of blackmail and victimisation of any party. The issues around supply contracts, higher prices above international crude prices, and the cost of logistics should be quickly resolved before they damage the confidence of investors in the sector.”
Also, the National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said the battling with crude oil locally to boost production by Dangote Refineries would dampen investors’ confidence if it lingered.
He said, “This development will affect negatively. Our crude oil is being used in other countries. I am concerned about the situation where we export crude oil to other countries, yet we import refined products.
“It doesn’t make sense. Why can’t our refineries process the crude oil we produce? Instead, we’re exporting it to other nations, only to import refined products from them.
“It’s suspicious and seems like a game is being played. I hope this isn’t another case of inefficiency or lack of capacity. We need to get our refineries working to process our crude oil and reduce our reliance on imported refined products. We must address this issue, if we continue in this course, we can dampen investors’ confidence.”
.. Forum resolves to advocate for State Police, fiscal federalism, regional devt.
The Southern Governors’ Forum has emphasized the urgent need to address the inadequate power supply in the region, which is the economic and industrial hub of the country.
The forum has targeted to generate 90,000 MW of electricity to serve the estimated 90 million people in the region, using the rule of thumb of 1,000 MW per 1 million population.
This was disclosed in a communique signed by the chairman, Prince Dapo Abiodun, Ogun State Governor and other other Southern governors on Monday.
The communique reads partly, “Being the economic and industrial hub of the country, the Forum highlighted the need to address the inadequate power supply in the region.
“To achieve 90,000 MW of electricity to adequately serve the estimated 90 million people in the Southern Region (using the rule of thumb of 1,000 MW per 1 million population), member states were encouraged to take advantage of the recent constitutional amendment that now allows states to regulate, generate, transmit and distribute electricity whilst also considering renewable sources of energy.”
Also, the forum reaffirmed its commitment to advocating for the creation of state police, fiscal federalism, and regional development and the governors.
The governors also discussed the controversy surrounding the tenure of Local Government Chairmen in Rivers State and reiterated their support for the position of the law and constitution. They resolved to remain united and committed to promoting intra-region trade, partnerships, and investment facilitation through a structured and coordinated approach.
Meanwhile, the forum announced the establishment of the Southern States Development Agenda (SSDA), which will outline a holistic plan for fostering trade, investment, sustainable growth, and development in the region. The SSDA will work with individual states’ investment agencies, the Nigeria Investment Promotion Commission (NIPC), and multilateral agencies.
“The Southern States Development Agenda (SSDA) will be set up and will comprise a team whose primary responsibility is to outline a holistic plan to foster trade and investment, sustainable growth and development, economic prosperity, social harmony, and food security for the region.
“They will work hand in glove with individual states’ Investment Promotion and Facilitation Agencies, the Nigeria Investment Promotion Commission (NIPC), and other multilateral agencies,” it added.
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