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Tinubu commissions OB3, ANOH, AHL gas projects

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…Reiterates commitment to utilise Gas for economic growth, prosperity

President Bola Ahmed Tinubu on Tuesday virtually commissioned three gas projects in Imo and Delta state.

The projects were executed by NNPC Limited and its partners in Ohaji-Egbema, in Imo State and Kwale, in Delta States, on Wednesday.

The three projects commissioned include the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.

Speaking, President Tinubu reiterated the commitment of his administration to utilize Nigeria’s abundant gas resources towards revamping the nation’s industrial growth and kickstarting its economic prosperity.

“It is pleasing that approximately, 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25 percent incremental growth in gas supply. In practical terms, this translates into more gas to the Power Sector, Gas-Based Industries, and other critical segments of the economy,” the President added.

The President said from the onset, his administration was clear of its intention to leverage on the virtually unlimited capacity of gas to deepen domestic gas utilisation, increase national power generation capacity, revitalise industries, and create multiple job opportunities for economic growth.

He said aside the Presidential Compressed Natural Gas (CNG) Initiative which is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivising gas development through Presidential Executive Orders.

While congratulating the projects partners (NNPC Limited, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy for the successful implementation of the three projects, Tinubu particularly charged the NNPC Limited to, as the national energy company of choice, sustain its relentless efforts and record more successes in the energy sector for the benefit of all Nigerians.

He described the commissioning as a highly significant milestone for Nigeria as it demonstrates his administration’s efforts to accelerate the development of critical gas infrastructure geared at enhancing the supply of energy to boost industrial growth and create employment opportunities.

He said the projects were fully in line with the Federal Government’s Decade of Gas initiative, and his administration’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialisation.

“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realisation of gas-fueled prosperity in our country. Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business,” the President noted.

Earlier in his address, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo highlighted the efforts of his ministry to continue to champion the utilisation of gas as a transition fuel as Nigeria moves towards achieving clean energy efficiency and security by 2060.

Ekpo commended the President for his leadership and support towards the success of the three projects.

He said: “Mr. President, the decision to eliminate fuel subsidies at the start of your administration has compelled increased spending in upstream and midstream gas development, and the use of gas as an appropriate, more cost-effective, and cleaner alternative to diesel and gasoline. Furthermore, in keeping with the Paris Climate Change agreement, this measure solidifies the use of gas as our transition fuel as we move the Nation towards achieving green energy sufficiency by 2060.”

The Minister appreciated  President Tinubu, saying his “inspiring leadership has been the driving force behind our progress towards a future full of opportunity and promise.”

He described the AHL Gas Processing Plant 2 (GPP – 2) and ANOH Gas Processing Company (AGPC) Plant, which were commissioned, as important facets of the Decade of Gas initiative, and a reflection of the NNPC Ltd. and its Joint Venture partners’ efforts.

“In addition to producing over 160,000 metric tonnes of propane and 100,000 metric tonnes of butane annually, this plant promotes rapid industrialisation and reduces reliance on LPG import,” he said.

In his remarks, the GCEO NNPC, Mr. Mele Kyari described the commissioning as a demonstration of Mr. President’s commitment and support to grow the domestic utilisation of natural gas for power generation, as feedstock for gas-based industries and overall rapid industrialisation of Nigeria on the back of the enormous gas resources in the country.

Kyari assured that as part of its mandate, NNPC Ltd remains committed to maintaining energy security by executing more strategic gas projects for the benefit of Nigeria.

Energy

Bonga is asset of the year in Shell group

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Nigeria’s premier deep-water development, Bonga, operated by Shell Nigeria Exploration and Production Company Limited (SNEPCo) has won the coveted Asset of the Year award in the Shell Group for 2023, the latest recognition of its best-in-class performance in Safety, Environment and Asset Management.

Bonga had clinched same award in 2016 and was first runner up in the same category in 2019 for improved production, maintenance, problem-resolving capability, operational excellence and cost ownership.

The asset won again this year beating targets in oil production, plant availability, and greenhouse gas emissions. The asset also recorded zero fatalities and spills. “This is a testament to a culture of excellence which has endured at Bonga since first oil in 2005,” SNEPCo Managing Director Elohor Aiboni said of the award. “We appreciate the hard work of staff and contractors as well as the support of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergiesNigeria Limited, Nigerian Agip Exploration and Esso Exploration and Production Nigeria Limited which has enabled Bonga to continue to safely and efficiently deliver value to stakeholders.”

Among other factors, SNEPCo has relied on a motivated workforce, cutting-edge technology and a relentless drive on safety to deliver oil and gas at record levels at Bonga. Last year, the Floating, Production, Storage, Offloading (FPSO) vessel, which is at the heart of the operations, achieved the one billionth barrel of crude oil export. Overall, Bonga produced 138,000 barrels of oil equivalent per day (boepd) in 2023 compared to around 101,000 in 2022.

The latest award for Bonga adds to a lengthy list of laurels won by Shell in Nigeria in the past few years. In 2022 alone, Shell Companies in Nigeria were recognised as Best International Company of the Year (Petroleum Technology Association of Nigeria), Upstream Company of the Year (Nigeria International Energy Summit) and Leading Tax Compliant Firm in Nigeria (Federal Inland Revenue Service.)

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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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Energy

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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