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.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) Adamawa/Taraba chapter, has expressed resolve to continue its ongoing strike even as petrol sells N2,000 per litre.
The IPMAN Chairman, Alhaji Dahiru Buba, stated this in an interview with the journalists in Yola on Tuesday.
He said that the strike was occasioned by incessant harassment of its members and illegal seizures of their tankers carrying petrol by officers of the Nigeria Custom Service (NCS).
He said Customs officers had abandoned their designated areas of operation at the borders and were now targeting legitimate businesses in metropolitan and local government areas.
According to him, these have led to financial losses, artificial scarcity and hike in products’ prices and the strike will continue until NCS stops their activities.
The strike and attendant high cost of petrol has resulted in low vehicular movements on the roads.
Abubakar Muhammed, a resident, told journalists that workers and other commuters now find it difficult to get transport to their offices and destinations.
Muhammad explained that this was due to the sharp rise in transport fares as commuters now pay N700 instead of N300 for a drop.
Most fuel stations in Yola are closed and motorists can only source petrol from black markets in some parts of the metropolis and state.
On June 10, the Comptroller-General of the NCS, Adewale Adeniyi, during a news briefing in Yola, solicited support and cooperation of all stakeholders in the fight against smuggling, especially of petrol.
He said that smuggling of petroleum products across the country’s borders was a sabotage of Nigeria’s economy.
Adeniyi therefore solicited the cooperation and support of all Nigerians with security agencies to curb the menace.
Sahara Energy has unveiled its target of achieving zero carbon emissions from its oil and gas operations by 2030.
The company, along with its sister companies in the energy value chain, has commenced arrangements to reduce carbon emissions and earn carbon credits for a sustainable future.
The agenda was disclosed at a news conference, tagged, “Carbon Footprint and the African Narrative”, held by Sahara Group and Asharami Square in Lagos on Tuesday.
Mr Wole Ajeigbe, Group Project Manager, Asharami Energy, while speaking on “Decarbonisation of Africa’s Upstream Operations”, said Sahara Energy was building a sustainable energy future with an ambitious but pragmatic approach to its upstream carbon net zero journey.
According to him, efforts are ongoing at its seven oil-producing assets across Nigeria to ensure that operations at the sites are considerate of global warming.
Ajeigbe said that the net zero plan would be achieved gradually by reducing and minimising carbon emissions on a yearly basis.
He said that the company had some gas commercialisation projects which were expected to be completed by 2025 to 2026.
He listed the strategies to include; elimination of gas flare across its upstream operations; reduction in freshwater usage during operation; and making use of Carbon Capture Utilisation and Storage (CCUS) among others.
Emphasiaing its determination, he said that the company had already joined the global group of CCUS, emerging as the first African company in the forum.
Ajeigbe said, to ensure oil and gas continue to be used to meet Africa’s energy demands, the sector needed to decarbonise its operations quickly.
He noted that the energy demand and usage in Africa would increase significantly in coming years,
Ajeigbe stressed the need for the government to create an enabling environment that would stimulate investments and grant fiscal incentives on gas projects such as tax holidays, funding recurities, risk mitigation among others.
The government and stakeholders, according to him, also need to encourage availability of capital pools; improve bankability of gas projects; give support to projects that have taken decarbonisation seriously; and attract skills and develop the capabilities needed for the energy future.
Regional Director, West Africa, Ford Foundation, Dr Chichi Aniagolu-Okoye, said although Africa was contributing about four per cent to global warming, the continent has been severely affected by the phenomenon.
She said the fact that Africa holds up to 17 per cent of the global population, yet contributes just four per cent to global carbon emissions.
This, he noted, means that the continent could do more for a sustainable environment through careful and strategic planning.
Aniagolu-Okoye said that Africa must focus not only on challenges, but also on opportunities that global warming presents.
“There are numerous opportunities to place Africa firmly at the forefront of climate debate and the media should lead the campaign,” she said.
The Director, Governance and Sustainability, Sahara Group, Ms Ejiro Gray, spoke on most viable solutions for mitigating carbon emissions and meeting Africa’s development.
According to her, these solutions include natural gas development; increase in use of renewables; protection and rehabilitation of African natural carbon sinks.
Gray said that other were innovation in low cost/low emissions clean energy solutions; carbon culture storage/carbon capture and re-utilisation and utilisation of domestic knowledge.
She said that Sahara had continued to make improvements to its operations, to reduce the carbon footprint and by extension, the continent footprint.
Gray listed some of the strategies to include; increase use of renewables; gas commercialisation; research and development and sustainable energy and carbon sinks.
Others are Carbon Capture Usage and Storage (CCUS); tree planting initiatives; and awareness campaigns for youths, among others.
The Head, Corporate Communications, Sahara Group, Bethel Obioma, said the Asharami Square has come to stay and would be having training and mentorship for journalists.
Obioma said that it would also be having Asharami Awards to appreciate those works that had contributed to building sustainability in Africa.
He said that the body was already in partnership with University of Lagos and Pan Atlantic University in the quest to upscale skill on sustainability.
The number of electricity consumers rose by 210,000 from 12.12 million in the fourth quarter of 2023 to 12.33 million in the first quarter of 2024.
The National Bureau of Statistics stated in its Electricity Report for the first quarter (Q1) of 2024 released on Tuesday in Abuja that the increase was by 1.78 per cent.
The News Agency of Nigeria reports that the review focuses on energy billed, revenue generated, and customers by DISCOS under the reviewed period.
It stated that on a year-on-year basis, the number of electricity customers increased by 9.47 per cent in Q1 2024 from 11.27 million reported in Q1 2023.
It said in Q1 2024, the number of metered customers stood at 5.91 million compared with the 5.61 million recorded in Q4 2023, this indicated a 5.38 per cent increase.
“On a year-on-year basis, the figure grew by 11.26 per cent from the 5.31 million reported in Q1 2023,’’ it said.
Similarly, estimated electricity customers stood at 6.43 million in Q1 2024, showing an increase of 10.22 per cent over the 5.83 million recorded in Q4 2023.
“On a year-on-year basis, estimated customers increased by 7.88 per cent in Q1 2024 from the 5.96 million recorded in Q1 2023,” it stated.
The NBS also said that electricity distribution companies collected N291.62 billion in revenue in Q1 2024 compared with the N294.95 billion they collected in Q4 2023.
It added that on a year-on-year basis, revenue collected rose by 17.91 per cent over the N247.33 billion collected in Q1 2023.
It stated that electricity supply was 5,769 (Gwh) in the first quarter of 2024 from 6,432 (Gwh) recorded in the fourth quarter of 2023.
However, the report said on a year-on-year basis, electricity supply decreased by 1.41 per cent in Q1 2024 compared with the 5,851 (Gwh) reported in Q1 2023.
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