We must privatise pipeline assets to safeguard energy sector – PETAN Chairman
The Chairman of Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya has called for the privatization of Nigeria’s oil and gas pipelines to ensure the continued sustainability of the energy sector.
Speaking at the recently concluded Nigeria International Pipeline and Security Conference (NIPITECS), the PETAN Chairman said the privatisation is in the interest of Nigerians describing it as a “commonwealth solution'”, to ensure efficiency and sustainability of the nation’s critical oil and gas industry.
Engr. Ogunsanya explained that the commonwealth solution of privatizing Nigeria’s pipeline network stems from the opportunity the country has for the private investor to hold 51% ownership in the nation’s pipelines with the oil producers, including the NNPC Ltd. and IPPG that own the crude oil as shareholders. This model is not new in Nigeria, it’s the working model that has kept the NLNG to remain a pride of the industry even when there more room for improvement establishing more LNGs’ and increase of Gas feedstock.
“All over the world”, he submitted, life expectancy of populations is highly impacted by energy security, which ensures the availability of and access to healthcare, availability of infrastructure that enhance living standards, affordable food, better housing and education. With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it means that Nigerians lack energy security. It also means that majority of Nigerians lack all these basic necessities”.
“For Nigeria, the catalyst to our economic growth is oil and gas, and capacity must be built across the value chain – from finding the resources to production to refining to transporting and to the downstream. Doing this with in-country capacity will guarantee Nigeria as one of the top 20 economies in the world”, he declared.
He expressed regret that Nigeria failed to use the proceeds of its crude oil sales over the decades to build the country.
He however commended indigenous companies making up professional associations like PETAN and PLAN for helping to build capacities and creating jobs in a local content drive that has multiplier effects and yielding results along the value chain of the industry and the regional economy.
