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FG To Achieve 40% Switch From Fuel, Other Products

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The Federal Government is targeting to achieve a 40 per cent energy switch from the consumption of Premium Motor Spirit (petrol), Dual Purpose Kerosene (kerosene) and Automotive Gas Oil (diesel), to the use of Liquefied Petroleum Gas.
According to the government, efforts are currently intensified to promote the wider use of LPG in households, power generation, auto-gas and industrial applications.
The government disclosed this through the Federal Ministry of Petroleum Resources in a document obtained by our correspondent in Abuja on Friday on the achievements of the FMPR between 2016 and 2018.
Providing explanation on its LPG penetration programme, the ministry stated that the Federal Government initiated the LPG Expansion Programme in order to effectively drive the switch to LPG consumption across the country.
It said, “The LPG Penetration Framework is designed to reduce the national energy consumption of PMS, DPK, AGO by achieving a 40 per cent fuel switch to LPG in 10 years.
“The programme will also promote the wider use of LPG in households, power generation, auto-gas and industrial applications towards the attainment of five million metric tonnes domestic utilisation and creation of an estimated 500,000 job opportunities nationwide in five years.”
The FMPR noted that overall, improvements in the standard and quality of living in rural communities were also expected for the programme.
It said the LPG Penetration Programme along with the Nigeria Gas Flare Commercialisation Programme were components of Nigeria’s intended nationally designed contributions under the Paris agreement for reducing annual greenhouse gas emissions by the year 2020.
On the NGFCP, the government stated that the programme was a key component of the Nigerian Gas Policy which had the aim of reducing the environmental and social impact caused by flaring of natural gas, protect the environment, prevent waste of natural resources, and create social and economic benefits from gas flare capture.
“The design of the key programme transaction, commercial framework and documentation have been completed. When fully implemented it will improve gas supply for power generation, industrial use and LPG penetration in the economy,” the FMPR said.
In November, say that the Federal Government was targeting a revenue of $1bn annually and a total of 300,000 direct and indirect jobs from the commercialisation of flared gas.
The government said flared gas could be harnessed to stimulate economic growth, drive investments and provide jobs in oil producing communities and indeed for Nigerians through the utilisation of widely available innovative technologies.
In the NGFCP document obtained by our correspondent in Abuja, the NGFCP Programme Manager at the FMPR, Justice Derefaka, stated that the Federal Executive Council approved the NGFCP as the mechanism for implementing Nigeria’s commitment to eliminate routine gas flaring.
The government stated that the recently gazetted Flare Gas (Prevention of Waste and Pollution) Regulations 2018 was the legal basis for the implementation of the NGFCP and the payment regime (penalties) for gas flaring.
It stated that the regulation adopted the polluter pays principle, similar to a carbon tax, adding that “results of work done to trigger up to 85 projects that will utilise flared gas, generate approximately 300,000 direct and indirect jobs and annual revenue generation/Gross Domestic Product impact estimated at $1bn/annum are also highlighted.”
The NGFCP is developed by the FMPR, Nigerian National Petroleum Corporation, Department of Petroleum Resources and the implementation team of the NGFCP comprising of adviser teams from the World Bank and USAID under the leadership of a ministerial steering committee that reports to the Minister of State for Petroleum Resources.

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Micro-Grids, Solution To Africa’s Power Problems – Expert

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The incorporation of micro-grids into a hybrid system of electrification is the best solution for Africa’s power supply problems, an international energy consultant based in Johannesburg, Anastasia Walsh, has said.
Walsh, who described electrification as an ongoing and foundational investment necessary to realise all modern-day development objectives, urged governments in Africa to explore the use of mini and micro-grids as they strive to provide power.
She said, “Despite bullish policies, the fact remains that over 640 million Africans lack access to electricity. The effect of this is apparent.
“It impedes economic growth, it inhibits the advancements of self-reliant local communities and it threatens national security. African governments are beginning to rethink their electrification plans.
“Grid modernisation, specifically the deployment of micro-grids in rural areas, provides a promising strategy.”
She noted that attempting to replicate the centralised utility models implemented in the United States and Europe had not succeeded in improving energy access across the continent.
Walsh said despite this, it was as if many governments and utilities wrongly maintain the position that the expansion of the traditional grid infrastructure was the solution.
She said, “In areas where communities have access to the central grid, they still have to supplement the intermittency of the power with diesel generators.
“On the flip side, the utilities are financially strained because they are unable to collect revenues from their customers.
“The low rate of revenue collection is due to the unsustainable tariffs the providers impose on customers as a result of the political pressure exerted on them. This results in the utilities being unable to finance upgrades in infrastructure, further exacerbating the issues.”

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Cautious Optimism Greets Oil Discovery In Gongola Basin

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Exciting as the news of the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin may be, stakeholders, yesterday, insisted that the development would only be meaningful after the volumetric of the hydrocarbon is determined.
They equally noted that festering insecurity, environmental issues, dearth of infrastructure and cost of production were major factors that must also be taken into account, just as economically viable farmlands, as well as communities may be affected and relocated.
Exploring the many implications of the development, some industry players noted that the development is also capable of dousing agitations of the Niger Delta region, hoping that it would balance resource locations in the country.
Exciting as the news of the discovery of hydrocarbon deposits in the Kolmani River II Well on the Upper Benue Trough, Gongola Basin may be, stakeholders, yesterday, insisted that the development would only be meaningful after the volumetric of the hydrocarbon is determined.
They equally noted that festering insecurity, environmental issues, dearth of infrastructure and cost of production were major factors that must also be taken into account, just as economically viable farmlands, as well as communities may be affected and relocated.
Exploring the many implications of the development, some industry players noted that the development is also capable of dousing agitations of the Niger Delta region, hoping that it would balance resource locations in the country.
The Nigerian National Petroleum Corporation (NNPC), which announced, on Friday, the discovery of crude oil and gas in the Gongola Basin, northern Nigeria, noted that the commercial viability of the discovery coming from the drilling of a total depth of 13, 701ft before hitting oil and gas in several levels is yet to be ascertained.

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PANDEF Applauds OML 25’s Peaceful Resolution

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The Pan Niger Delta Forum(PANDEF) has applauded the peaceful resolution of conflict arising from the Oil Mining Licence (OML) 25 between the multinationals and host communities in Rivers State.
Leader of PANDEF, Chief Edwin Clark, gave the commendation at the official reopening of the flow station by host communities, including, Koko Ama, Offoin Ama, Belema Ama, and Ngeje in Kula Kingdom in Degema Local Government Area of Rivers State, at the weekend.
Clark, who spoke through a former Nigerian Ambassador, Godknows Igali, stated that the approach could be used to address similar issues in other oil bearing communities within and outside Rivers State.
He pledged his commitment towards working with the Federal Government in ensuring that the OML community engagement model is replicated in other oil bearing communities in the Niger Delta region.
Clerk commended Belema oil, Nigeria National Petroleum Corporation (NNPC) and Shell Petroleum Development Company (SPDC) for their spirit of negotiation and peaceful resolution of conflicts.
“He (Clark) asked me to let you know that he would continue to work with you, work with the Federal Government and work with all stakeholders and ensure that this type of synergy is replicated not only in and around Kula OML area, but around the oil producing communities so that there can be peace”, Igali said.
In his address, the spokesman of PANDEF, Mr Anabs Sara-Igbe, thanked the Federal Government for moving the construction of the 85 km Degema-Kula Express Way away from the Ministry of Niger Delta to the Niger Delta Development Commission.
He said, “I thank the Federal Government particularly for moving the 85 km Kula road to Degema from the Ministry Niger Delta Affairs to NDDC, who will work with Belema Oil and SPDC”.

 

Tonye Nria-Dappa

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