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FG to address power deficit using alternative sources — Minister



The Minister of Power, Mr Adebayo Adelabu says the Federal Government is addressing  power deficit by using alternative energy sources, such as windfall, solar and mini-grids.

Adelabu, represented by MrAbdulrasheedLawal, Director Procurement, Ministry of Power said this in Abuja on Wednesday at the  presentation of  the proposed 30 Megawatts (MW) Windfall And Solar Hybrid Project at Lekki, Lagos.

The project after necessary appraisal would be executed by Crown Resources Development Company Limited (CREDCO) in collaboration with Vergnet a French Wind Turbine Company, based in France.

He said, “We are aware that presently there is energy deficit in the country, so we are doing everything possible to address the issue by investing in alternative sources.

“We have to think out of the box to achieve energy sufficiency; we have to look at using mini-grids, solar and wind to achieve this.

“We are already doing 10MW using Windfall in Katsina and we are trying to replicate same in Lagos in order to ensure reliable and steady power supply in the country,” he said.

On his part, Mr Barney Ojiah, Chief Executive Officer of CREDCO, said that they were in the ministry of power to make a presentation on the project and to discuss how to further improve power supply for Nigerians.

He emphasised that power was important in the lives of all Nigerians no matter how it comes.

“This is a collaborative effort between the ministry of power and CREDCO on how to achieve reliable and steady power supply,” he said.

Also, Mr Frederic Cheve, Subsidiaries Manager, Africa, Vergnet while making his presentation said that the project was a renewable and innovative solution to Lagos energy need.

According to him, the project aims to harness the abundant wind and solar resources to generate clean and reliable power while mitigating the risks associated with relying on a single source of energy.

He said that the proposed capacity of the project was 20/30 megawatts wind and solar hybridised system.

Cheve, who said the project would be developed in phases, added it would have a number of significant benefits for Lagos and the country.

He listed the benefits to include improved energy security and grid stability.

“It will create green jobs and boost the local economy, reduce the reliance on fossil fuels and curtail greenhouse gas emissions.

“This project will contribute to achieving Nigeria’s national energy goals,” he said.

Cheve further said the project aligned with President Bola Tinubu’s Presidential Power initiative (PPI) which aimed to add 12,000 MW of electricity to the national grid and to provide 24 hours electricity for Nigerians.

“The project is in line with the renewable energy plan that is based on Nigeria’s commitment to carbon neutrality by 2060,” he said.

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National Average Petrol price rises by 223.21% year-on-year in May 2024



The average retail price of Premium Motor Spirit (Petrol) in Nigeria for May 2024 surged by 223.21 percent to N769.62 per litre, compared to N238.11 per litre in May 2023.

This data is sourced from the National Bureau of Statistics (NBS) Premium Motor Spirit (Petrol) Price Watch report for May 2024.

The report also highlighted that, month-on-month, the average retail price in May 2024 increased by 9.75 percent, up from N701.24 in April 2024.

“The average retail price paid by consumers for Premium Motor Spirit (Petrol) for May 2024 was N769.62, indicating a 223.21 percent increase compared to the value recorded in May 2023 (N238.11). Likewise, comparing the average price value with the previous month (i.e., April 2024), the average retail price increased by 9.75 percent from N701.24,” the report read in part.

Furthermore, the report noted that while N769.62 was the national average retail price per litre of petrol in May 2024, each geopolitical zone had its respective average prices: North Central at N695.04, North East at N777.04, and North West at N845.26. The South East zone’s average was N766.21, South-South N770.01, and South West N763.39.

The analysis indicated that the North West Zone had the highest average retail price at N845.26, while the North Central Zone had the lowest price at N695.04.

The NBS report also highlighted the average retail price for petrol in each of the 36 states plus the Federal Capital Territory (FCT), Abuja. Jigawa State ranked as having the highest retail price at N937.50, followed by Ondo at N882.67 and Benue at N882.22.

On the other hand, Lagos, Niger, and Kwara States had the lowest average retail prices for petrol, at N636.80, N642.16, and N645.15 respectively.

Providing additional data to highlight the rise in the average retail price of petrol from N238.11 per litre in May 2023 to N769.62 per litre in May 2024, the NBS report shows the monthly average retail prices for petrol over this 12-month period.

Starting from N238.11 per litre in May 2023, the price rose to N545.83 in June 2023, a 129.22 percent increase. In July 2023, the price further increased to N600.35, a 10.00 percent rise from the previous month. The upward trend continued in August 2023 with a price of N626.70, marking a 4.39 percent increase.

In September 2023, there was a slight month-on-month decline to N626.21, a 0.08 percent decrease.

However, the price rose again to N630.63 in October 2023, a 0.71 percent increase, continuing on an upward trajectory to N648.93 in November 2023, a 2.90 percent rise, and closing the year at N671.86 in December 2023, a 3.53 percent increase.

By January 2024, there was a minimal decline month-on-month to N668.30, a 0.53 percent decrease, followed by a rise to N679.36 in February 2024, a 1.65 percent increase.

The price continued to climb to N696.79 in March 2024, a 2.56 percent increase, and to N701.24 in April 2024, a 0.64 percent rise, before reaching N769.62 in May 2024, a significant 9.75 percent increase from the previous month.

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NNPC Ltd-TotalEnergies JV announces $550m FID on Ubeta field dev’t project



The NNPC Ltd-TotalEnergies  Joint Venture (JV) has announced a 550 million dollars Final Investment Decision (FID) on the Ubeta Field Development Project.
This was announced on Thursday at the signing ceremony held at the Nigerian National Petroleum Company Limited (NNPC Ltd.) Towers, Abuja.
The milestone is in line with President Bola Tinubu’s Presidential Executive Order on Oil and Gas Reforms, aimed at improving the investment climate and positioning Nigeria as the preferred investment destination for the Oil and Gas sector in Africa.
The Ubeta field was discovered in 1964, in the North-West of Port Harcourt in the eastern part of the Niger Delta.
Once on stream, it will produce about 350 million standard cubic feet per day (MMScf/day) of gas and 10,000 BBLS/day of associated liquids.
It will tap into the vast gas reserves and contribute towards securing gas supply to the Nigeria Liquefied Natural Gas (NLNG).
Malam Mele Kyari, Group Chief Executive Officer, NNPC Limited said the milestone was a major step towards boosting Nigeria’s oil and gas production.
Kyari expressed appreciation to the president for providing the appropriate fiscal environment and facilitating a conducive operational environment as a major enabler in achieving this success.
The GCEO, while appreciating the industry stakeholders for their continuous support, lauded the Federal Government’s Presidential Executive Orders for Fostering Growth in Nigeria’s Oil and Gas sector.
“The Presidential Executive Order is instrumental to us getting to this significant milestone and we are now seeing the impact of the policy,” Kyari said.
In his remarks, Mike Sangster, Senior Vice-President Africa, Exploration and Production, TotalEnergies, described Ubeta as the latest in a series of projects developed by the oil giant in Nigeria, most recently Ikike and Akpo West.
“I am pleased that we can unveil this new gas project which has been made possible by the Federal Government’s recent incentives for non-associated gas developments.
“Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects, and will contribute to the Nigerian economy through higher NLNG exports,” he said.
Earlier in his remarks, the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, said Tinubu had significantly rekindled investor’s confidence in the Oil and Gas Industry, assuring Nigerians that more investments were on the way.
Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the project was a testament to the effectiveness of government’s policies aimed at creating a conducive environment for investment in the gas sector.
Located in OML58, the Ubeta gas condensate field will be developed with a new 6-well cluster connected to the existing Obite facilities through an 11km buried pipeline.
Production start-up is expected in 2027, with a plateau of 300 million cubic feet per day (about 70,000barrels of oil equivalent per day including condensates).
Gas from Ubeta will be supplied to NLNG, a liquefaction plant located in Bonny Island with an on-going capacity expansion from 22 to 30 Mtpa, in which NNPC Limited holds a 49% interest.
Ubeta is a low-emission and low-cost development, leveraging OML58 existing gas processing facilities.
The carbon intensity of the project will be further reduced through a 5 MW solar plant currently under construction at the Obite site and the electrification of the drilling rig.
TotalEnergies is working closely with NNPC Limited to enhance local content, with more than 90 per cent of man-hours which will be worked locally.
The Ubeta FID justifies the effort invested by NNPC Limited, with unyielding Executive support, into tackling the underlying reasons that have plagued the attractiveness of the Nigerian oil and gas industry to foreign investors in recent years.
The Ubeta project has a robust Nigerian Content plan and is poised to stimulate economic activities, create job opportunities, and create significant value for stakeholders.
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OML58 Ubeta gas project aimed to boosts Nigeria’s energy sector



By Esther Agbo

The Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, delivered a keynote address at the Final Investment Decision (FID) Ceremony for the OML58 Ubeta Field Development Project. This event marks a significant milestone in Nigeria’s energy sector and highlights the robust partnership between Nigeria and TotalEnergies.

The Ubeta Project is projected to produce 350 million standard cubic feet per day (MMScf/d) of gas at its peak.

This initiative is a testament to TotalEnergies’ commitment to Nigeria and plays a crucial role in ensuring a stable gas supply for Nigeria LNG. The project is expected to enhance the stability and growth of Nigeria’s gas industry, which is essential for the country’s economic diversification and sustainable development.

Minister Ekpo emphasized that the project’s alignment with President Bola Ahmed Tinubu’s strategic objectives and the Presidential Executive Orders of March 2024. These directives aim to transform Nigeria into a major gas hub, providing cleaner energy, creating jobs, and fostering economic growth.

The Decade of Gas Initiative has laid the groundwork for ambitious projects like Ubeta, focusing on leveraging Nigeria’s abundant gas resources to drive industrialization, reduce environmental impact, and offer affordable energy to millions of Nigerians. The Ubeta Field Development Project is a prime example of investments that bring technological advancements, foster local content, and generate sustainable economic benefits.

Minister Ekpo commended TotalEnergies for their continued partnership and investment in Nigeria, acknowledging their role in boosting gas production capabilities.

He said, “I want to take this opportunity to commend TotalEnergies for their continued partnership and investment in Nigeria. Your efforts not only boost our gas production capabilities but also contribute to our shared goals of energy security and economic prosperity. We value your commitment to employing innovative technologies and practices that ensure the efficiency and safety of your operations.”

He also highlighted the effectiveness of Nigeria’s policies in creating a conducive environment for investment in the gas sector, attributing the project’s fruition to supportive government policies and regulatory frameworks.

Looking ahead, Minister Ekpo urged for continued collaboration to harness Nigeria’s vast gas potential. He stressed that the success of the Ubeta Project would be measured not only by gas production volumes but also by its positive impact on the economy, communities, and environment.

In conclusion, Minister Ekpo congratulated all contributors to the project, praising their dedication and hard work. He called for ongoing cooperation to ensure the successful implementation and operation of the Ubeta Field Development Project, setting a benchmark for future projects in Nigeria’s gas sector.

The event concluded with a call for continued efforts to leverage Nigeria’s gas resources for the nation’s economic and environmental benefit.

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