Oil & Energy
Gas Flaring: Total, Communities Sign Pact …As Nigeria Losses $2.5bn Annually To Flaring
In line with Federal Government’s flare out regulations, the French oil and gas giant, Total Exploration and Production Nigeria Limited (TEPNI), a subsidiary of Total Group, has signed a milestone Memorandum of Understanding (MoU) with stakeholder communities for the right of way of the strategic Obite, Ubeta and Rumuji (OUR) gas pipeline.
Signing the MoU in Port Harcourt between Total E&P and the land owners, families and communities from Rumuji, Ndele, and Elele Alimini where the gas pipeline traverse, the company said that the agreement would ensure that stakeholder communities derive optimum benefits from the project to maximize their development potentials.
Deputy Managing Director, Total E & P, Port Harcourt District, Denis Berthelot, who signed for the company, said the OUR Gas Pipeline, a major component of the OML58 upgrade, cannot be realized without the support of the communities, and enlisted their cooperation to make the project succeed.
Berthelot stressed that, “as our strategic and very important partners, the company has put its cards on the table through series of consultations and negotiations with all of you, our host communities, and the conclusion culminates today with this ceremony”, adding that Total E & P was “conscious that the set timeline for this project cannot be achieved without your support” and the validation of the product of our various decisions so that full implementation of the provisions of the agreements could commence.
In their response, the communities thanked Total E & P for providing the opportunity for both parties to firm up a workable agreement to guide the operations of the company while executing the gas pipeline project, and pledged their readiness to support the company in any way possible to ensure that set goals are met, while delivering sustainable development to the impacted communities.
The Tide learnt that the 45.6-kilometre OUR with 42-inch diameter gas pipeline, which is to be constructed by Zakhan Baywood Joint Venture, will facilitate the transport capacity of gas from the OML58 fields to the Nigerian Liquefied Natural Gas facility on Bonny Island in Rivers State for processing and export to foreign markets.
The company said the OML58 upgrade is designed to increase gas production capacity from the current 10.6million standard cubic metres per day, approximately 370million standard cubic feet per day, to 15.6million standard cubic metres per day or 550million standard cubic feet per day, while also increasing oil and condensate output by around 15,000 barrels per day, bringing the total output from the fields to 140,000 barrels of oil equivalent per day.
Industry sources note that Nigeria has flared more natural gas associated with oil extraction than any other country, suggesting that of the 3.5billion standard cubic feet, about 99m of associated gas produced annually, 2.5billion standard cubic feet, representing some 71m³ or 70 per cent of production capacity is wasted through flaring.
This, according them, has denied the country an estimated $2.5billion annually.
According to Total, the OML58 upgrade is expected to comply with Federal Government’s gas flare out regulations, contribute to meeting the growing demand for gas in Nigeria as well as supply gas feedstock to the Nigeria LNG.
The Tide gathered that the project will also contribute to an improvement in the safety profile of the company, and extend the life of existing facilities while enhancing oil recovery to boost production and increase the nation’s revenue earnings.
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Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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