….Lists Challenges of pipeline development in Nigeria
By Thompson ABISOLA
The Chairman/Chief Executive Officer, Nestoil Limited, Dr Ernest Azudialu-Obiejesi, has called on the Federal Government to increase construction of huge and secure network of pipeline in order to enhance access to natural gas supply by power generating stations and other areas where gas is needed.
This advice if considered by the Federal Government is expected to boost power generation output of 20,000megawatts (Mw) needed to drive the needed industrialization that Spurs economic development.
Dr Azudialu-Obiejesi gave the advice in a paper delivered during the second edition of the Nigerian International Pipeline Technology and Security Conference ( NIPITECS) in Abuja on Tuesday.
According to him, the current method of using domestic gas cylinders is outdated and had been scrapped in industrialized nations.”
Nigeria, with its abundant reserves of petroleum and gas, stands on the threshold of its own industrial revolution.
To kick-start this industrialization, we must not only extract these resources in the most efficient manner, but also refine and deliver them efficiently, and in a secure and cost effective manner,” he suggested.
The CEO added that investment in more pipelines by the Federal Government will serve to eliminate dangerous exposure suffered by the general populace when oil and gas are evacuated through our road transport infrastructure.
For instance, he lamented over material cost, dilapidation of roads and great havoc caused in the past couple of months by road transportation of petroleum products following the explosion of petroleum tankers in Lagos and Nasarawa State.
“When the proper pipeline network exists and runs reliably, products are always delivered on time, eliminating the need to build hundreds of storage/holding facilities all over the country,” he noted.
He identified vandalism, sabotage, ageing & integrity issues as great challenge to construction, maintenance and operation of the existing current pipelines in the country.
According to him, interferences, sabotage and vandalism have resulted to oil spills with the attendant environmental, health and safety implications as well as negative impact on agricultural and fishing activities.
Speaking about the new approach by the Federal Government to make award of major pipelines projects to be contractor financed, Azudialu noted that the funding of these projects is a very big limiting factor for Nigerian Engineering, Procurement and Construction and Commissioning (EPCC) companies willing to participate in the construction of these modern pipelines infrastructure.
According to him, the local companies face bigger challenges raising fund for EPCC pipeline projects compared with the level of struggle for fund to finance projects by the Federal Government.
“Considering the age, state and exposure of our pipeline infrastructure, there should be concrete plans for replacement with better designed, constructed and secured pipelines utilizing modern methods and technologies,” Azudialu suggested.
He urged the government to address the issues of criminality, sabotage and vandalism to ensure the security, reliability and continuous operation of the nation’s pipeline network.
He also called on the Federal Government to establish enabling environment to grow pipeline networks as expatriate companies will never do it for Nigeria.
Other suggestions include audit of pipeline network and where appropriate, recommend those due for decommissioning and replacement; adoption of Horizontal Directional Drilling (HDD) method for pipeline construction; burial of pipelines to ensure restricted access utilization fibre optic monitoring systems for monitoring and security; implementation of processes that are recognized international best practices to monitor the pipelines properly, drive timely maintenance and repairs to avoid unnecessary shut downs, environmental degradation and pollution.
He added: “Pipeline construction companies should desist from unhealthy completion and negativity such as writing negative and potentially destructive lies about each other in the media, thereby destroying the image of Nigeria both locally and internationally.
In the welcome address by the Chairman of Pipelines Professional Association of Nigeria (PLAN) Mr. Geoff Onuoha, he lamented low level of pipelines in Nigeria compared with other countries having lower population below Nigeria’s population of 186 million.
To develop the economy and fast track growth, he called for encouragement of Public Private Partnership (PPP) in the establishment of new pipelines. “In order to reduce current challenges of pipeline maintenance, the private sector must be allowed to become owners of pipelines for stricter control and effective monitoring,” he said.
