Oil & Energy

Modular Refineries And N’Delta Dev

Published

9 years ago

August 28, 2017

The Niger Delta region has undergone a chequered history of socio-economic development in Nigeria.
The region has within the past years been at the centre stage of national discourse, as it is rife with consistent agitations over perceived development neglect and adverse environmental degradation as a result of the exploitation of its natural resources for the development of the country.
This unbridled quest for development attention on the part of the Niger Delta has no doubt remained Nigeria’s greatest albatross.
Several interventionist policies and programmes of successive governments to assuage the demands of the Niger Delta has unfortunately failed to abate the impending crisis of development in the area.
The latest of their palliative measures is the decision of the federal government to establish modular refineries in the Niger Delta.
The Federal Government’s position on the establishment of modular refineries in the Niger Delta was made explicit by the Vice President of Nigeria, Prof Yemi Osinbajo, then acting president, during a working visit to the region.
Addressing stakeholders in the Niger Delta, the Vice President disclosed that licences will be issued for the establishment of modular refineries to provide a more regulated and sustainable economic activity as a credible alternative for those who found solace in bunkering and illegal refining of crude oil as a major occupation in the region.
According to the Vice President, the decision was part of moves to stem the growing spate of crude oil theft and wanton destruction of oil facilities in the region, which has resulted into monumental economic loss to the federal government and untold damages to the natural environment.
The Federal Government’s policy on establishment of modular refineries has, however, formed the nucleus of contentious debate among experts and stakeholders.
While some stakeholders believe that the establishment of modular refineries will impact positively on the economic development of the Niger Delta, others are of the opinion that the policy is unrealistic and therefore unpracticable.
A workshop on Nigerian content, recently organised by the Port Harcourt branch of the Nigerian Society of Engineers, (NSE) and the Nigerian Content Development and Monitoring Board, (NCDMB), provided a platform for stakeholders and experts in the oil and gas industry to discuss the prospect and implication of modular refineries for the development of the Niger Delta.
Speaking on the sub-theme: Nigerian Content and Diversification of the Economy in the Proposed Modular Refineries Sub-Sector, a Chemical Engineer and University Don, Dr Awajiogak Ujile faulted the concept of modular refineries as proposed by the federal government.
Ujile, an Associate Professor and lecturer in the Rivers State University, said the idea of using modular refineries to replace “crude oil cooking” in the Niger Delta was not feasible because the operators of the illegal refineries lacked the technical capabilities to operate modular refineries.
He pointed out that the management and operations of conventional refineries in Nigeria over the years has been a dismal failure as a result of political interest and the deliberate isolation of experts with the requisite technology to drive the refineries.
According to him, the modular refineries will be no exception. “Will the modular refineries be built for the host communities, the state, or those involved in crude oil cooking. The truth is that the policy is not practicable. The demand for domestic consumption of petroleum in Nigeria is 60 million litre per day, and a modular refinery can only produce one thousand litre per day. That can not bridge the gap in consumption need, there is need for an integrated approach, government should bring experts into its policy making”, he stated.
Dr Ujile, who is also the Chairman of the Port Harcourt chapter of the Nigeria Institute of Chemical Engineers, also raised alarm over the activities of those involved in raw “cooking of crude oil”.
He said the indiscriminate burning of the energy reserves in the Niger Delta, pollute the entire stretch of Rivers and creeks destroying aquatic creatures and depriving the people of their natural means of livelihood.
Apart from the damage to the environment, he said, the activities of illegal bunkering has obvious health implications, for the people of the Niger Delta.
The expert who advocated for the privatisation of all refineries in Nigeria said, the privitisation policy should be devoid of political manipulations, but experts should be made to drive the policy for sustainability.
He urged the Federal Government to extend its amnesty programme to pipeline vandals and bunkerers, and get them reintegrated into the society through the acquisition of functional skills.
Dr Ujile also called on the National Orientation Agency (NOA) and other relevant bodies to embark on mass sensitisation campaign against the ills of illegal oil bunkering.
On his part, a Professor of Petroleum Engineering, Joel Ogbonna, decried the lack of full value chain in the Nigeria oil gas sector.
He said establishment of modular refineries was not a solution to the diversification of the Nigerian economy as there were no incentives for its optimal operations.
Prof. Ogbonna, who is the Head of Department, Gas, Engineering, and Director, Centre for Petroleum Research and Training, Institute of Petroleum Studies, University of Port Harcourt, listed the challenges in the Nigeria oil and gas sector to include; aging oil production facilities, lack of enabling environment and poor technology.
He called on the Nigerian Content Development and Monitoring Board (NCDMB) to encourage Nigerian professional and indigenous companies in the promotion of Nigeria local content, through the provision of enabling policies and laws.
For sustainability in the production of petroleum product for domestic consumption and enhancing the value chain in the oil and gas sector, Prof Ogbonna recommended that every oil production company should have a refinery attached to its platform. He noted that the persistent decline in the price of oil in the international oil market was an ominous indication of the obsolesce of fossil oil in the near future, and advised that Nigeria should diversify into other sectors of economic development.
In his presentation, a technocrat and development expert, Elder Elkanah Hanson, attributed the problem of technological development in Nigeria to the lack of vision in improving inherent potentials and total dependence on foreign technology.
For the proposed modular refineries to succeed, he said the local technologies invented in the creeks of the Niger Delta should be improveed upon.
“There is nothing like illegal refineries in the Niger Delta, what we have is the first stage of Niger Delta refineries, the only thing illegal in the operation is the process of acquisition of the crude, the Nigerian Content Development and Monitoring Board should partner with the operators of the so-called illegal refineries to improve their local inventions to adulthood and ICT stage. We can’t talk of local content development when we gloss over the potentials in our local technology”, he stated.
He called for the restructuring of the present federal structure of the country to reflect the ideals of fiscal federalism and the concept of comparative economic advantage, where natural potential in the various parts of the country are fully harnessed for economic development.
Earlier in his keynote address, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr Simbi Wabote, had stated that the theme of the workshop; “Nigeria Content and the Diversification of the Economy”, was very apt, as it was in line with the Economic Recovery and Growth Plan (ERGP) launched by the federal government.
He said the policy was a 10-year vision and strategic initiative, targeted at achieving structural economic change with a more diversified economy, focused on six priority sectors; agriculture, manufacturing, solid mineral, services, construction, real estate and oil and gas.
The Executive Secretary, who described the Niger Delta Region as critical to the development of the Nigerian economy, said before the Nigeria Oil and Gas Industry Content Development (NOGICD) Act was signed into law in 2010, all fabrication, engineering and procurement were done abroad, resulting in estimated capital flight of about $380bn in 50 years.
Over two million job opportunities were also estimatedly lost in the Niger Delta region. The consequence was protracted development crisis in the area. He pointed out that the vision of establishing modular refineries in the Niger Delta was part of the initiatives of using local content as a key development imperative in the Niger Delta.
According to him, the estimated $28bn spent every year and $76m spent every day to import fuel in the country was huge economic burden that would have been appropriately channeled for the development of social amenities and creation of jobs for the teeming youths in the region.
He pointed out that the federal government’s strategic initiative in correcting the unsustainable business model, was to achieve 100% local fabrication of modular refineries for production of 10% of our local needs. “Part of our Nigerian oil and gas park scheme layout has been set aside for training local modular refiners for fabrication of the units. The parks which will be operated as sites and services scheme will also host manufacturing and oil and gas service providers, we are currently working on 5 of the parks in Akwa Ibom, Bayelsa, Cross River, Delta and Imo States. We need to move away from pride in export of crude oil to pride in export of refined products”, he stated.
With the 2019 deadline for the stoppage of importation of petroleum products in Nigeria, Engr Wabote, said the NCDMB, was working hard to ensure that the objective is achieved.

Taneh Beemene

Oil & Energy

‘Revamping Moribund Refineries ‘ll Address Rising Cost Of Petroleum Products’

Published

1 month ago

September 21, 2026

The Tide

An Energy Expert, Dr Joseph Obele, has called on the Federal Government and the management of the Nigerian National Petroleum Company Limited (NNPCL) to urgently restart the government – owned refineries insisting that it would help in curbing the rising cost of petroleum products.

He insisted that bringing back the moribund public refineries would further serve as a direct response to the plight of Nigerians as far as petroleum products is concerned.

Obele, who is also the Public Relations Officer (PRO) of the Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) and Lecturer at the Ignatius Ajuru University of Education, Port Harcourt, while reacting to the cost of petrol said the immediate and practical approach to addressing the current increase in petroleum prices is to restore production at the government-owned refineries and maximise every available refining capacity in the country.

“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries”, he said.

Obele insisted that restoring functional government-owned refining capacity would increase domestic supply, reduce dependence on imported refined petroleum products and contribute to greater stability in the downstream petroleum market.

He urged the federal government to maximise all available refining capacity while continuing to encourage responsible private-sector Investment and healthy competition within the downstream petroleum industry.

Obele expressed concern over the continued rise in crude oil prices amid the ongoing tensions involving the United States and Iran and concerns around the Strait of Hormuz, warning that sustained supply risks could continue to put pressure on global petroleum prices.

He noted that Brent crude closed at about $105.83 per barrel on 16 September 2026, while WTI closed at about $102.43 per barrel.

The impact, the expert said, is already being felt in the Nigerian downstream market, with Premium Motor Spirit (PMS) reportedly selling in the range of ?1,400–?1,500 per litre in some locations, while Automotive Gas Oil (AGO) is selling above ?2,000 per litre.

“The immediate approach to the recent rise in petroleum prices is to restart the government-owned refineries”, Obele said.

According to him, restoring functional government-owned refining capacity will increase domestic supply, reduce dependence on imported refined petroleum products and contribute to greater stability in the downstream petroleum market..

He warned that a prolonged increase in petroleum prices would have a wider economic impact, particularly on transportation, food, medical services and other essential commodities.

“The continuous increase in the cost of petroleum products will invariably affect the prices of virtually all commodities and services. It will create additional inflationary pressure and deepen the financial hardship being experienced by Nigerians”, he stated.

Obele noted that the prolonged dormancy of government-owned refineries has had serious economic and employment implications across the petroleum value chain, affecting workers, contractors, marketers, transporters, businesses and other dependants of the sector.

According to him, a functional Port Harcourt and Warri Refinery would stimulate activities across the petroleum value chain, support employment and restore confidence among industry stakeholders.

In his words, ‘the Port Harcourt Refinery should become a measurable demonstration of government’s commitment to the welfare of Nigerians”

He further noted that the Port Harcourt Refinery had previously recorded production activities arguing that the focus should now be on resolving operational challenges and returning the facility to sustainable production.

“The time to restart the Port Harcourt Refinery is now. Nigerians cannot continue to bear the unbearable cost of petroleum products when domestic refining capacity is available. Every viable refinery should be optimally utilised in the national interest”

Obele emphasised that the objective should not be to undermine private-sector refineries but to ensure that all viable refining assets—government and private—contribute to national energy security, adequate supply and a competitive downstream petroleum market.

Lady Godknows Ogbulu

Oil & Energy

The Race To Cut Methane Emissions Is Exposing A Global Divide

Published

1 month ago

September 21, 2026

The Tide

Several countries worldwide have been working to reduce methane leaks, with some states making significantly more progress than others. The establishment of the Global Methane Pledge in 2021 at the COP26 climate summit has helped accelerate cleanup efforts; however, many countries are still falling behind on their methane-cutting pledges. Now, one of the world’s biggest methane polluters – Turkmenistan – is aiming to plug its mega leaks, which would help reduce global methane emissions and could encourage other countries to do the same.

The United States and the European Union led the Global Methane Pledge, which has since been signed by 159 countries that together contribute around 45 per cent of global human-caused methane emissions. The pledge aims to reduce methane emissions by at least 30 per cent below 2020 levels by 2030.

Many governments had already made ambitious pledges to reduce carbon emissions, but some had not previously sought to cut methane emissions, which heat the planet up to 80 times more than carbon dioxide over two decades. Methane has contributed around 30 per cent of the increase in global temperatures since the Industrial Revolution, and fossil fuels contribute around one-third of the methane emissions from human activity. Record production of oil, gas, and coal, combined with limited mitigation efforts, has kept emissions above 120 million tonnes (Mt) annually, according to the International Energy Agency (IEA).

The IEA’s annual Global Methane Tracker shows how much methane is emitted each year and tracks progress and failures. In 2024, abandoned wells and mines accounted for roughly 8 Mt of methane emissions, demonstrating the severity of leaving them unplugged. It is extremely hard to track methane emissions as they are widely underreported. Some parts of the world have little or no measurement-based data on methane emissions.

Therefore, the IEA has to rely on data from scientific studies, measurement campaigns, and large emissions events detected by satellites to estimate emissions each year. Some regions of the world, such as Europe, report their methane emissions far more accurately than other parts. The IEA estimated that global energy-related methane emissions are about 80 per cent higher than those reported by countries to the UN Framework Convention on Climate Change.

Some countries contribute heavily to the world’s methane emissions, particularly oil-rich countries that have not effectively decommissioned fossil fuel operations for decades, including Turkmenistan, the United States, Russia, Iran, and Venezuela. A 2023 Guardian assessment revealed that Turkmenistan was the worst country for methane mega-leaks. Some of Turkmenistan’s “super-emitters” leaked tonnes of methane every hour, from a single valve or pipeline, which is more than the emissions from an entire coal-fired power station. The assessment showed that the methane emissions alone from Turkmenistan’s two main fossil fuel fields contributed more to global heating in 2022 than the United Kingdom’s entire carbon emissions. The findings have led to significant public backlash and put pressure on the government to address the problem.

This year, Turkmenistan approved a massive clean-up project, as the country started plugging its mega-leaks. Turkmenistan has halted eight leaks by repairing corroded pipes, faulty wells, and failing flares, according to data from the United Nations. However, significant work is needed to reduce the country’s methane emissions. The UN Methane Alert and Response System (MARS) has delivered 192 alerts of methane plumes to Turkmenistan over the last year. According to the system, Turkmenistan had nine of the world’s top 50 worst methane leaks of the last six months.

Turkmenistan has improved its reporting systems in recent years and responded to around 20 per cent of the alerts with on-the-ground information about the leaks and potential plans to fix them. By comparison, the United States was sent 138 alerts and did not respond to any. The worst detected methane leak came from Mexico’s offshore oil and gas operations and measured a huge 37 tonnes per hour, equivalent to the emissions of over 7 million SUVs. Although Mexico responded to all 23 MARS alerts, it has yet to fix the leak.

Meghan Demeter, the programme manager of MARS, stated, “These mitigation cases are a proof point of what can be done with satellite data, especially in situations like Turkmenistan, where there are a lot of detections… This is a breakthrough in terms of having real documented mitigation action. But it is not yet a breakthrough in the overall magnitude of emissions. Eight cases is an incredible first step, but there are also a lot more sources in Turkmenistan that need to be addressed. We are in pretty constant communication, and the response rate is growing month by month. We’re seeing steady progress.”

UN tracking has also encouraged other countries in the region to plug leaks, with Kazakhstan, another former Soviet republic with ageing oil and gas infrastructure, stopping eight leaks following alerts. To date, Mexico, Brazil, and Argentina have 100 per cent response rates to MARS alerts, while Libya and Azerbaijan have high response rates. Meanwhile, the United States, Iran, Russia, and China failed to respond to any alerts.

By Felicity Bradstock for Oilprice.com 16

Oil & Energy

Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid

Published

2 months ago

September 7, 2026

The Tide

The Delta State Government has intensified efforts to boost electricity generation and supply in the state with plans to add 120 megawatts (MW) to the national grid through a partnership with Supply Power.

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.