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Nigeria’s domestic gas network can transport 6.9bn bcf for power, others — Kyari

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The Nigerian National Petroleum Company Limited (NNPC Ltd), says Nigeria’s domestic gas infrastructure network has capacity to transport 6.9 billion Standard Cubic Feet (BCF) of gas to support power generation and gas-based industries.

Malam Mele Kyari, Group Chief Executive Officer (GCEO), NNPC Ltd., made this known on Thursday in Abuja at the 2023 edition of the Oloibiri Lecture Series and Energy Forum (OLEF).

The forum, which was organised by the Society of Petroleum Engineers (SPE), had its theme as “Effective Gas Resources Utilisation: A Lever for Enhancing Energy Security and Achieving Net-Zero Emission Goals in Nigeria.”

Kyari said Nigeria’s huge investment in gas infrastructure is hinged on its growing natural gas reserves, thus supporting the nation’s aspiration to create Africa’s biggest industrial hub, powered by low-carbon energy.

He said the NNPC Ltd. was taking advantage of Nigeria’s huge natural gas reserves of over 200 Trillion Cubic Feet (TCF) with a potential to grow to 600 TCF as more investment is expected due to recent resolution of the Production Sharing Contract disputes with partners.

He said this significant reserve would serve as a low-carbon energy alternative that would support growth in power and industrial sectors, address energy poverty, reduce carbon-footprint and create more employment opportunities.

“NNPC is playing a leading role in the realisation of National Gas Expansion Programme, which seeks to deepen natural gas utilisation as an alternative transportation fuel, and an important feedstock for gas-based industries development.

“We are working assiduously to ensure timely delivery of gas pipeline infrastructure projects, including the Abuja-Kaduna-Kano gas pipeline corridor, planned Nigeria-Morocco and Trans-Sahara Gas Pipelines, that will connect West African countries to deliver natural gas to international markets,” he said.

For the gas export market, he said the ongoing Nigeria Liquified Natural Gas (NLNG) Train Seven would expand Nigeria’s LNG production capacity from 22 Million Tons Per Annum (MTPA) to about 30 MTPA.

He said it was leveraging the provisions of the Petroleum Industry Act to attract more investment in the Nigerian Petroleum sector, to continue to guarantee access to energy while aligning with global energy transition.

“As part of our sustainability strategy, NNPC is deploying carbon-reduction initiatives to gradually decarbonise our operations and improve our compliances with global emission reduction.

“All of these cannot be achieved if we do not have security of our operations. We will continue to further deepen collaboration amongst all the relevant stakeholders; government security agencies, host communities and others to enhance energy security.

“NNPC will deepen relationship with the Industry, Governments, Research Institutions and the Academia to strengthen its Renewable Energy Division to pursue commercially viable new energy ventures in line with Nigeria’s net-zero aspiration by 2060,” he said.

Kyari, while thanking the SPE for their efforts in promoting innovation, knowledge sharing required for our industry, urged them and other industry stakeholders to continue to collaborate with the NNPC Ltd  to guarantee energy security.

In an address,  Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe said how to provide clean, sustainable and affordable energy to global populace is a critical challenge.

Komolafe, represented by Dr Nuhu Habib, Executive Commissioner, Production and Development, NUPRC, said NUPRC is committed to ensure access to enabling environment and regulatory frameworks  for progressive investments in gas production and energy transition achievement.

Also speaking,  Authority Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed called for concerted efforts of all levels of government to ensure energy security was guaranteed.

Ahmed, represented by Dr Mustapha Lamorde, Executive Director of Health, Safety, Environment and Community (HSEC), said the authority drafted 20 oil and gas industry regulations to fully deliver value to Nigeria’s economy.

He said out of the regulations, 12 had been gazetted while five out of the gazetted regulations are gas based.

He, however, expressed assurance that the authority is positioned to ensure enabling environment and investments in gas value chain for business to thrive.

Energy

FG, UAE plan new oil exploration deal

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The Federal Government, on Monday, urged the United Arab Emirates to invest in the renewal and reconstruction of the more than 50-year-old oil pipelines in Nigeria, stressing that the facilities had outlived their lifespans.

It also stated that Nigeria and the UAE were on the same page concerning oil exploration as crude oil drilling would not be abandoned despite calls for its abandonment in some quarters.

The Minister of State for Petroleum (Oil), Heineken Lokpobiri, disclosed this in Abuja while playing host to a delegation from the UAE led by the United Arab Emirates Ambassador to Nigeria, Salem Al Shamsi.

Lokpobiri said, “This country has enormous investment opportunities, our pipelines need renewal. They have been there for over 50 years since Nigeria found oil in commercial quantities in 1956/1958.

“And from then till now it is almost 70 years and most of those pipelines were built around that time and have already outlived their lifespans. And even if you can produce, you need to evacuate to the terminals where you would export.

“So it is an opportunity that we are looking up to potential investors from the UAE to come and invest here and recover their money through those investments.”

The minister told his guests that the investment models would be very attractive.

“Part of what we are proposing is that if you come and invest you will get your money, for as you transport the crude you’ll take it. Proportionately you’ll recover your investments, for any barrel of crude you transport through your pipes, you have to recover your investment by placing mutually agreeable charges,” he stated.

Lokpobiri further stated that Nigeria has over 208 trillion cubic feet of gas, adding that “we in Nigeria know that these records are over 20 years. We can double or triple our gas reserves in Nigeria. So Nigeria is more of a gas country than even crude.”

He said, “And even our crude reserves, I’m very confident that the 37 billion barrels we are talking about are also records of about 20 years. So even in terms of crude deposits in volumes, we believe that we should be doing much more than that.

“That is why when this government came on board, part of what was said was that we have to resume our drilling campaigns to ensure that we make more discoveries and sustain the momentum, and we are achieving that by liberalising the processes.”

He said the government was trying to eliminate the bureaucracy which had been one of the reasons why some of these investments were delayed.

“Of course, you know that following the introduction of the Petroleum Industry Act, the NNPC is now run as a national oil company that is to make profit for shareholders and Nigerians.

“So we want to assure the UAE that Nigeria is open for investments and we are committed to deepening our very strategic relationship with the UAE. I am happy that the visa issue has been addressed,” the Minister stated.

Lokpobiri told the ambassador that Nigeria and the UAE would continue to leverage their membership of OPEC to work as partners, adding that the Nigerian market is huge for investments, whether in LPG, CNG or the entire value chain in the oil and gas sector.

He said Nigeria lacks the amount of dollars required for suitable investments in the oil sector, but noted that the UAE has billions of dollars that could be invested in Nigeria and recovered by the investors.

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TCN: Electricity to be restored in North-East region by May 27

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The Transmission Company of Nigeria (TCN) has informed governors of North-East states that efforts are underway to restore electricity to the region by May 27, 2024, in line with previous commitments.

In a circular signed by the spokesperson of the commission, Ndidi Mbah, on Tuesday, TCN reported that its team is actively rebuilding the four towers that were destroyed by vandals in the region, and requested a bit of patience as the reconstruction progresses.

Mbah also mentioned that the commission has required contractors to install on-site machines to accelerate the fabrication processes of tower components, which is currently in progress.

“The Transmission Company of Nigeria (TCN) wishes to assure the North East Governors Forum (NEGF) that we are doing everything possible in our power to ensure the restoration of power supply to the North Eastern axis of the country, as earlier indicated in our press release of 10th May 2024.

“Our team has been tirelessly working to rebuild the four towers destroyed by vandals, and we will not rest until power is restored to all the affected areas. We appeal for a little more patience, as work is truly advancing.

“To expedite the work, we have insisted that the contractor put in place on-site machines that will help increase the fabrication processes of tower members which is ongoing.

“We expect power supply to be restored by May 27, 2024, through the new 330kV transmission line, allowing Yola and Jos DisCos to offtake and distribute optimally from TCN substations,” the circular read in part.

Recall that in April, the TCN had reported that four of its towers on the Jos–Gombe 330kV transmission line were vandalized.

According to Mbah, the transmission line initially tripped and despite attempts by the company’s operators to restore it, it happened once more.

Mbah explained that this led to the deployment of TCN operators who were sent out to trace and rectify the fault along the line.

She added that while tracing the fault, TCN’s engineering crew discovered that towers 288, 289, 290, and 291 were vandalised and some parts carted away.

Many states in Nigeria continue to suffer from vandalism of electricity infrastructures, often leading to power outages that can last for weeks or even months.

Last month, TCN reported incidents of vandalism of its towers five times in February.

It noted that the destruction of its facilities counts as sabotage and urged security operatives and host communities to work towards bringing the culprits to book.

Meanwhile, following the report, Mbah noted that efforts by TCN are currently mobilising for repair works on the affected facility.

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Energy

Port-Harcourt refinery may resume operations July — IPMAN

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The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Ukadike Chinedu has revealed that the refinery may resume operations in July.

Speaking to journalists during the week, Ukadike stated that the development would stimulate economic activities, reduce the price of petroleum products and ensure adequate supply.

The IPMAN official stated that the work done represented a complete turnaround, not just rehabilitation, emphasising that every effort would be made to meet the July deadline.

Ukadike said, “Yes when we visited the place, the MD told us that the refinery was almost ready and by the end of July, they would start producing. It has been turned into a new one. They changed all the armoured cable to brand new and everything there is almost like a brand-new refinery.”

“The turnaround on maintenance is very massive and the job is being done day and night. All hands are on deck to make sure that they meet that target. By the end of July the refinery should be ready,” He said.

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