Energy

NNPCL, marketers fuel vessels arrive next week – IPMAN

Published

10 months ago

July 4, 2023

Large consignments of Premium Motor Spirit, popularly called petrol, being imported by major oil marketers, are to hit Nigeria from next week and may force down the price of the commodity, both major and independent dealers stated on Sunday.

It was also gathered that crude oil refiners were currently releasing refined petroleum products on credit to dealers from Nigeria, following the recent unification of the country’s exchange, which boosted the confidence of operators.

This came as the Independent Petroleum Marketers Association of Nigeria told our correspondent that they would compete with the Major Oil Marketers Association of Nigeria and the Nigerian National Petroleum Company Limited on the importation of petrol, stressing that this would crash the cost of PMS.

Before the President, Bola Tinubu, removed subsidy on petrol, the product was solely imported by NNPCL, as other marketers stopped its imports due to their inability to access the United States dollar.

At the time, oil marketers explained that the NNPCL was accessing the dollar at a lower rate, which was unfair and did not support PMS importation by other dealers.

But with the recent unification of the exchange rate, oil marketers had to join in the importation of petrol and confirmed that the products should be arriving Nigeria from next week.

Asked to state when the products being imported by major marketers would start hitting Nigeria, the Executive Secretary, Major Oil Marketers Association of Nigeria, Clement Isong, replied, “I will simply say between the second and third week of July.”

Isong, however, explained that the NNPCL had made a lot of fuel imports, as some of its vessels were still on the way to Nigeria.

“Let me say that NNPCL has imported significantly to prevent the country from running dry. The vessels NNPCL imported are offshore Nigeria, so they have a significant volume, therefore in all circumstances the country will not run dry.

“So the option everybody has is that they can buy from NNPCL ex-depots or they can go and import from Europe or from other places. The assignment is that you compare your price if you buy from NNPCL or import from Europe.

“More or less, the taste of the pudding is in the eating. So do your calculation as the best as you can. But you will only know the full impact when the product is in your tank. If it goes right, it is then that you will know how competitive your price is. The more you do it, the more efficient you become,” Isong stated.

On how marketers were sourcing of forex for imports, the MOMAN officials dealers were accessing the foreign exchange from banks and other sources.

“People access forex from different places. Just that it is easier for some people than others. Some people have strong banks, while others have other means of accessing forex. So everyone plays on their strength and ability to access forex.

“And it must be stated that the floating of the exchange rate is a plus, for instance, some people can go and get credits from their suppliers, while others have LCs (Letters of Credits), means of borrowing, etc.

“But the most important thing is that there is a unified exchange rate and that makes people more confident in going to import. There is no unfair advantage, where in the past some persons have access to low exchange rates,” Isong stated.

Explaining what he meant by saying some dealers could get credit from suppliers, he said, “If you have a good relationship with your supplier, they can give you products on credit. It is a function of the relationship you have with your supplier.

“Obviously, the way the market works, if you have it on credit you pay a little bit more.”

Also speaking on the issue, the Secretary, IPMAN, Abuja-Suleja, Mohammed Shuaibu, stated that the cost of PMS was bound to go down in the coming weeks, as imports from marketers arrive in Nigeria.

He confirmed that some private depot owners were already cutting down the cost of the commodity, lower than the rate being sold by the NNPCL.

“The sector has been deregulated and of course, if you have the power you will go and import. It is not going to be only the major marketers, independent marketers are also picking interest and there will be competition.

“And, of course, I know that sooner than later, the price of petrol will be forced down, particularly once the products from marketers start hitting the country from next week. This is because market forces will now determine the price.

“It is not going to be solely imported by NNPCL again, for instance, this week; the private depots reduced their prices, different from what NNPCL is selling. So there is a reduction lower than what NNPC is selling,” he stated.

Shuaibu said IPMAN was ready to compete with the NNPCL and major marketers to force down the cost of petrol nationwide.

“With time there will be healthy competition. We know major marketers are expecting products in weeks and we will compete with them when our products start coming. This will further reduce petrol price,” he stated.

The IPMAN official also noted that the consumption of petrol had dropped, as the purchasing power of citizens to access the commodity had reduced.

“People are lamenting. The price was raised by over three times its previous cost, coupled with the economic crisis in the country. So the patronage has been very, very poor,” he stated.

Last month, the Chief Executive, Nigeria Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, said some newly licensed importers of petrol were expecting their cargoes in July.

“The market is open already; we have to follow the regulations. So we have rolled out policies that are user-friendly. Some of them (marketers) have already started putting their applications in place. This is because we don’t want to create a gap.

“NNPCL is slowing down on their importation, so we have to have someone who is closing up on that gap that NNPCL is creating in order not to have a shortage in the country.

“But NNPCL is also monitoring the replacements that they have. We agreed that NNPCL will continue to import until such a time when we have a critical mass of other importers,” Ahmed had stated in Abuja.

Energy

Over 500mmscf/d gas supply projects to be commissioned — Presidency

Published

19 hours ago

May 4, 2024

NewsDirect

The Presidency has disclosed plans to commission over 500mmscf/d gas supply projects across the country.

This is in line with the country’s move to transition from fossil fuels to gas according to its Decade of Gas initiative.

In a press statement on Friday, the spokesperson to the President, Ajuri Ngelale outlined three projects the President is billed to commission.

The statement reads: “In line with his commitment to significantly leverage gas to grow the economy, President Bola Tinubu will commission three critical gas infrastructure projects being undertaken by the Nigerian National Petroleum Company Limited (NNPCL) and partners.

“The projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring.

“The delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity.

“The projects lined up for commissioning include: (1) AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/d. This project is an expansion to the Kwale Gas Processing Plant (GPP – 1), which currently supplies about 130MMscf/d of gas to the domestic market. The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline. This additional gas supply will support further rapid industrialization of Nigeria. ”The plant will also produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG Imports. The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.”

“(2) ANOH Gas Processing Plant (AGPC) – 300MMscf/d. The ANOH gas plant is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State. The plant will produce dry gas, condensate, and LPG. The gas from ANOH gas plant will significantly increase domestic gas supply, leading to increased power generation and accelerated industrialisation. The ANOH Gas Plant is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.

“(3)ANOH-OB3 CTMS Gas Pipeline Project. The project involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project. The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South (ANOH) primary treatment facility (PTF) to OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system. About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.”

“When commissioned, the projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively.”

Energy

Shell signs agreement to build gas pipelines in Oyo State

Published

1 day ago

May 3, 2024

Walewale

Shell Nigeria Gas, SNG, and the Oyo State Government have signed an agreement to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

A statement released on Friday by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, disclosed that SNG will build and operate the gas distribution network, which will serve customers across Oyo State for 20 years.

According to the statement, the project will start with the construction of gas distribution infrastructure along a 15km pipeline route, adding that it will grow to deliver up to 60 million standard cubic feet of gas per day across the state.

Speaking at the signing ceremony, the Oyo State Governor Seyi Makinde, described the project as a catalyst for development in the state.

The Managing Director of SNG, Ralph Gbobo, noted that the agreement was “a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.”.

He explained that the project would boost Oyo State’s internal revenue and create Job opportunities for indigenes.“

“The Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman, Shell Companies in Nigeria, Osagie Okunbor, remarked that the event pointed to the value of partnership as “Shell continues to power progress” in Nigeria through more and cleaner energy solutions for commercial and industrial customers.

Energy

Nigeria ripe for nuclear power to boost electricity generation – NAEC

Published

2 days ago

May 3, 2024

Walewale

The Nigeria Atomic Energy Commission (NAEC) in collaboration with Centre for Energy Research and Training (CERT), Ahmadu Bello University (ABU), Zaria would deploy nuclear science and technology to strengthen electric power generation in Nigeria.

Prof. Yusuf-Aminu Ahmed, Chairman NAEC disclosed this during the 20th Anniversary Symposium of the Nigeria’s first Nuclear Research Reactor-1 (NNR-1) in Zaria on Thursday.

Ahmed said the experience developed over the years on nuclear power at the centre makes Nigeria ripe and ready to go into the next level of power generation through the nuclear reactor.

“We have used the reactor for research and development over the years and now we are going to use the reactor for the purpose of generating electricity.

“President Bola Tinubu has already given the commission a mandate to see how it contributes in the clean energy sphere of Nigeria and the nuclear energy programme of Nigeria would participate,’’ Ahmed said.

He explained that the time for the project would not be open for the public; however, Ahmed added that international partners and vendors were working closely with the commission over the project.

He also said that intergovernmental agreements were signed with some of the vendors on the nuclear power in Nigeria and very soon President Tinubu would make an announcement on the issue.

Earlier, Sen. George Akume, Secretary to the Government of the Federation said the 20 years of safe operation of the nuclear research reactor was an indication that Nigeria has joined the campaign for safe application of nuclear energy.

Akume, represented by his Special Assistant on Technical Issues, Prof. Bolaji Babatunde, added that since the centre had safely operated the nuclear research reactor for 20 years, it can also obtain a nuclear reactor for electricity generation.

According to him, the process of having a reactor that would generate electricity is similar to operating a nuclear research reactor.

“President Tinubu has re-echoed the need for having nuclear energy into the sources of electric power generation in Nigeria and Nigerians should look forward to this power.

“Electricity generated through nuclear energy is clean and safe except for human errors or natural causes such as the one that happened in Hiroshima,’’ he said.

Earlier, Prof. Sunday Jonah, Director of the center said the event was to celebrate 20 years of safe operation, maintenance and utilisation of the first Nuclear Research Reactor code named NNR-1.

However, in spite of the numerous gains at the centre over the years, the Director lamented over a plot by NAEC to wrestle the centre from the university through the proposed NAEC Bill 2022.

He explained that such a move would negate the dreams of the founding fathers that established the centre in universities because of the culture of research and development being promoted at designated universities.