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.
Group Lauds FG Over Planned Repositioning Of NDDC
A group known as Patriotic Forum of Niger Delta (PAFOND) has commended President Muhammadu Buhari over his plans to reposition the Niger Delta Development Commission (NDDC) to live up to its statutory mandate of developing the Niger Delta region.
The commendation was part of a communiqué issued at the End of Year general meetings of the forum in Port Harcourt, and made available to The Tide.
The communiqué which was signed by the National chairman of the forum, comrade Owo Udoh, and the National Secretary, Comrade Daniel Wilson, stated that the Niger Delta had continued to suffer development neglect despite its huge to the Nigeria economy.
The forum urged the Minister of Niger Delta Affairs, Senator Godswill Akpabio, to commence the construction of roads in the Niger Delta and embark on other projects that will create meaningful impact on the lives of the people.
The group also called on other Niger Delta indigenes serving in the Buhari government,, particularly the Minister of Transportation, Chibuike Amaechi, to attract development projects to the Niger Delta.
The forum called on the governors of the Niger Delta states to channel the resources of the states for proper economic development of the region.
The group which expressed regrets over the, “infrastructural decay” in the Niger Delta, said development potentials in the oil rich region can be properly harnessed if the budgetary allocations for the development of the region are not diverted into personal coffers.
Expert Tasks Oil Firms On MoUs Implementation
The brewing conflicts between oil companies and their host communities in the Niger Delta over a breach of agreements signed by the corporate partners have generated concerns among stakeholders.
Worried by the increasing spate of disagreement between oil firms and their host communities, an expert in the oil and gas sector, Dr Eddie Wikina, has called on all multinationals and corporate organisations operating in the Niger Delta to implement the Memorandum of Understanding (MoUs) signed with their host communities.
Wikina who spoke with The Tide in an exclusive interview recently, said the flouting of MoUs and the absence of sustainable community development policies among various oil firms and corporate organisations were the root causes of underdevelopment and conflicts in the Niger Delta.
He pointed out that; “modern industry practices require that both the oil firms and the host communities operate in mutual agreement and synergy through a well community engagement model that would be subject to upward reviews to suit evolving developments to avert crisis.”
He noted that oil related conflict has been a predominant feature of the Niger Delta over the years and urged prospecting oil firms and other corporate organisations in the region to learn from the experiences of the past and improve their host community relations by contributing meaningfully to the development of their host communities.
The expert in Petroleum Engineering said host communities were major stakeholders in the oil and gas business, noting that their active participation in the sector was an elixir to smooth business operation According to him, “it’s certain that that business activities can’t strive in an environment where there is mutual disagreement and incessant conflicts; global standards in oil and gas business require that host communities be given their due sense of belonging to promote peace and development.
The business concern must be accommodative of the development interest of the host communities, any company that glosses over the interest of its host communities is bound to face challenges.”
Wikina cautioned against the influx of substandard oil firms in the Niger Delta and called on the Federal Government to enact laws that will compel multinationals to implement all agreements signed with their host communities.
“Not all companies that prospect for oil in the Niger Delta has the capacity for effective business operation, some of them don’t have the industry experience and lack the potency to make the right impact”, he said.
He said the implantation of the Petroleum Industry Bill (PIB) would address the inherent challenges in the oil and gas sector, especially in the development of oil and gas producing communities.
DisCos Studying Modalities Of NERC’s Directive On Cashless Payment –ANED
The Association of Nigeria Energy Distributors (ANED) says distribution companies are studying the modalities of the directive issued by the Nigerian Electricity Regulatory Commission (NERC) on cashless payment by customers.
Chairman, ANED, Mr Sunday Oduntan stated this on Friday in Lagos.
NERC had on December 31, 2019 directed the 11 DisCos to transit to cashless settlement platforms for the billing/collection of industrial and commercial customers by Jan. 31, 2020.
It also directed the Discos to transit to cashless settlement platforms for the billing/collection of the R3 class of residential customers by March 31.
The NERC said that Discos should leverage available banking channels approved by the Central Bank of Nigeria in complying with the directive.
It said that failure by DisCos to comply with the order would be treated as a breach of the terms and conditions of the distribution licence.
The commission said the move was expected to reduce the collection leakages being experienced in the sector.
Oduntan said that ANED was in support of any idea that would improve services between the layers in the power sector, noting that there was, however, need to examine the modalities concerning its implementation.
“We are studying the modalities of the directive. In principle, we support any idea that will reduce cash transactions; so, to us it is a good idea, especially for security purposes.
“But we also have to look at our customers across the country, especially those in the rural areas. Some of them don’t have bank accounts, don’t do internet banking and some even have cooperatives who collect these cash from them to help them make payments.
“So, we have to look at how we can factor them in and that is why we are yet to come out with our position.”
Oduntan said ANED had channels of communication with NERC and would not hesitate to sit down with the regulatory agency to sort out the grey areas.
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