…As Kyari Urges Speedy Passage of PIB
In keeping with the objectives of the United Nation’s 2030 Agenda for Sustainable Development and the Paris Climate Accord, the Nigerian National Petroleum Corporation (NNPC) is focusing on growing the nation’s domestic gas utilization for balanced economic growth.
Group Managing Director of NNPC, Mallam Mele Kyari, disclosed this Tuesday at the BusinessDay Energy Series Summit which held virtually with theme: “Nigeria at 60: Harnessing Nigeria’s Energy for the Future”.
This is contained in a statement issued by the Corporation’s spokesman, Dr. Kennie Obateru, quoted the GMD as restating NNPC’s commitment to the aggressive implementation of the Nigerian Gas Master Plan as a way of stimulating massive and sustainable economic development using natural gas which the nation has in abundance.
Mallam Kyari, who spoke on the topic: “NNPC’s Perspectives on Nigeria’s Gas Sector Development,” said apart from the Corporation’s commitment to deliver key gas infrastructural projects such as the Escravos-Lagos Pipeline System II (ELPS II), the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, and Central Gas Processing Facilities (CGPFs), NNPC was working on growing domestic gas utilization to 5billion standard cubic feet of gas per day (scf/d) and developing 5gigawatts (GW) of power generation by 2022.
“At the NNPC, we are aggressively pursuing other gas development initiatives with the aim of improving Nigeria’s economy using the appropriate fuels.
In terms of Gas and Power, we are developing and integrating gas and power infrastructure networks (increase interconnectivity) as well as stimulating gas demand (power generation, feedstock and transport, etc.),” the GMD informed.
He said NNPC was also exploring partnerships and investments in transmission to unlock evacuation and improve power distribution across the country, stressing that the Nigerian Liquefied Natural Gas (NLNG) Train 7 would be delivered by 2024.
“We are equally collaborating among key industry players and government agencies on key sectors even as we are developing energy related policies and investment packages to attract Foreign Direct Investment (FDI),” the NNPC boss stated.
He said the focus on the development of key areas will not only expand the Corporation’s domestic gas footprints, but also support the development of petrochemicals, fertilizer, methanol and other gas-based industries that will generate employment and facilitate balanced economic growth.
He applauded the support of President Muhammadu Buhari and the efforts of the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva, in driving initiatives aimed at positioning natural gas for sustainable development, noting that a number of the Federal Government’s gas initiatives such as the 7 Big Wins, the National Economic Recovery and Growth Plan (ERGP 2017-2020), the National Gas Policy (2017), have helped a great deal pushing the gas development agenda
“I would not end this discussion without emphasizing the need for proper legislation. The passage of Nigeria’s Petroleum Industry Bill (PIB) is long overdue.
It is one piece of legislation that will expand economic growth via improved revenue flows from the oil and gas sector and make the industry efficient and competitive.
NNPC is committed to supporting a sustainable legislation that will bring transformation to the industry, promote transparency and accountability across the value chain,” Mallam Kyari posited.
Stakeholders seek solution to haulage of petroleum products
Key stakeholders in the petroleum, transport and logistics sector have raised concerns about the recurring cases of tanker accidents in Nigeria, and called for an end to the development.
Indeed, the Minister of State, Transport, Gbemisola Saraki, noted that such accidents caused by human error could be killing more Nigerians than some diseases.
She disclosed this at a workshop organised by Major Oil Marketers Association of Nigeria (MOMAN), and the National Association of Road Transport Owners (NARTO).
Speaking at a workshop on, “Truck Renewal Policy,” Saraki, who was represented by the Assistant Director, Mass Transit in the ministry, Angela Keyede, said: “These crashes can be avoided if drivers are disciplined enough while on the road. It might shock you to know that road crashes are a serious ‘epidemic’ in Nigeria that produces more deaths than HIV/AIDS and Tuberculosis (TB) put together annually.”
This comes as the Corps Marshal, Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, said the lack of safety valves was responsible for the tanker explosion, which destroyed lives and properties in Lokoja, Kogi State, recently.
Oyeyemi insisted there was a need to properly conduct safety examinations of drivers, trucks and tankers before allowing them to ply the roads with petroleum products.
Coming when Nigeria has deregulated the downstream sector with expectations for efficient service delivery, Oyeyemi said: “We have been battling with the tankers that are falling and killing scores of people.”
According to him, a critical area to address is the issue of safety valves, adding that installing safety valves would make petrol spill even if there is an accident.
“The failure of vehicle and fleet owners to install safety valves is one of the major problems and we are going to look at that. It will be part of the resolution with the Department of Petroleum Resources (DPR), which I have sealed for implementation that if there’s no safety valve, there’s no loading,” he stated.
Chairman of MOMAN, Adetunji Oyebanji, said there was a need for a framework that would ensure safety of lives and property in the downstream sector.
Oyebanji said the integrity issues on the pipelines since the 1990s had compelled Nigeria to transport goods by roads, noting that “All over the world, the transportation of petroleum products is done via pipelines, rails and roads. Movement of product by pipeline is considered the most efficient and safest compared to rail and road.
“With about 10,000 trucks involved all over the country, hauling products majorly from the south to the north, about 80 per cent of these trucks do not have anti-skid.
“They also do not have anti-rollover, anti-spill protection, automatic braking systems, on board cameras and on-board tracking system required for safe transportation of petroleum products by road,” he said.
The National President of NARTO, Yusuf Othman, told marketers to provide the opportunity to optimise truck purchase, while also making prompt payment to the financiers.
“I also want to urge the financiers also to provide affordable and flexible financing for our members, while also taking into cognizance the environment we are operating,” he said.
FG to leverage gas utilisation for flare reduction, petrol divestment
With Nigeria flaring 321.29 billion cubic feet (bcf) of gas, about 11 percent of gas produced, the Federal Government has said its agenda under the National Gas Expansion Programme (NGEP), will reduce flaring and aid divestment from use of dirty fuels like petrol and diesel.
According to the Minister of State for Petroleum Resources, Timipre Sylva, flared gas is an important part of the global energy transition, the closest ally to renewables, prompting the development of the National Gas Policy, which sets the plans and strategy for the development of the sector.
Speaking during the Nigerian Economic Summit pre-summit event on, “Domestic Gas utilisation and commercialisation: Implementing the NDC Sectoral Action Plan for Energy,” Sylva said despite holding the largest gas reserves in Africa, the country had one of the lowest per capita consumption in the world.
Nigeria’s gas reserves were estimated at 200.79 trillion cubic feet (TCF) as of 1st January 2019, with associated gas reserves slightly above 50% with a total reserves Life index of 92 years as at 2018. Average daily production for gas stood at 7.97BCF/D in the reference year.
The United Nations (UN) describes energy as ‘’central to nearly every major challenge and opportunity the world faces today. Be it for jobs, security, climate change, food production or increasing incomes, access to energy for all is essential.” Nevertheless, even today, little or no access to energy deprives part of the world’s population of the opportunity to improve their quality of life.
Sylva said: “As a nation, we increasingly need to see that we are responsible for our future and accept that this means steadily improving environmental stewardship and governance both at national, geo-political and local levels, and opening decision making to a wider range of stakeholders.
“It means taking the lead in addressing the challenges of environmental sustainability and not hoping that international donors will step in and take care of these issues for us. What I mean is that we can work with outside partners to ensure it is Nigeria’s agenda that determines what is done.
“With the current drive of government to establish a fully deregulated PMS market, it is imperative to ensure Nigerians have access to alternative fuels that are cheaper and give great value to the consumer. Vehicles can be retro-fitted to run on LPG, LNG or CNG which are cheaper than PMS. Generators can also be retrofitted to utilize dual fuels.
“The NGEP is working assiduously to ensure that Nigerians can have access to these alternatives in the coming months. You will recall that I had directed that vehicles within my fleet and all the fleet of all heads of agencies under the Ministry be retro-fitted to utilize Autogas.
“With Autogas, Nigerians will make significant cost savings in comparison to PMS at the current price levels. It is also hoped that lifting the demand on PMS in-country may aid a downward price adjustment considering the normal forces of demand and supply.”
