Oil & Energy
Fg Blamed For Gas Flaring
Federal government’s lack of political will to enforce relevant laws on gas flaring is said to be responsible for the unending gas-flare in the country.
This was the position of Dr Precious Ede of the Institute of Geosciences, and space technology, Rivers State University of Science and Technology while presenting a paper titled, “Ending Gas Flaring in Nigeria: Challenges and Prospects at the just concluded Port Harcourt International Oil and Gas (PHIOG) Conference and Exhibition in Port Harcourt recently.
The doctor of Geosciences disagreed with the present approach of the federal government saying “we need to weigh the oil revenue that will fall against the impact on the environment which cannot be quantified”.
According to him, “The Vulnerability of the people of the Niger Delta to the continuous flaring of gas over the decades by the multinational oil companies reveals, yet again, the federal government’s lack of political will to enforce relevant laws on the issue”.
He was of the opinion that the approach should be a drastic one reasoning that even if it means stopping oil production it should be stopped.
He quoted Shell as saying the obvious when it stated in a bulletin that the only way to end gas flaring in flare-sites without Associated Gas Gathering equipment would be to stop oil production. Ede pointed out that such decision cannot be made by oil companies without direct support from other Joint Venture partners including the government-owned majority partner, National Petroleum Company (NNPC). It would be recalled that the last House of Representatives perfected the legislative frame work for gas flaring pegging the deadline at December 31, 2012 and stiff penalties on oil firms that would flout the regulations.
This was sequel to the adoption of report of the committee on Gas Resources on a Bill for an Act to Amend the Associated Gas Re-injection Act No. 99 of 1979 Cap. A25, laws of the federation of Nigeria. It was reported that a source at the newly inaugurated House of Representative said the eight House does not have any intention to extend the deadline.
“But there is no substitute for legislation because we now know the extent to which flaring hurts the environment and as economic waste. Only legislation will correct the weak contracts under which the joint venture relationships emerged.
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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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