Oil & Energy
NUPENG Advocates Measures To Revamp Refineries
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has stressed the need for practical and pragmatic steps to be taken towards rehabilitating the existing refineries in the country before deregulating the downstream petroleum sector.
NUPENG’s National Executive Council (NEC) in a communiqué issued at the end of its meeting held in Owerri, Imo State expressed their support for the deregulation of the downstream petroleum sector but was quick to add that government should ensure that the four existing refineries were rehabilitated to ensure optimal capacity utilisation.
The communiqué which was jointly signed by Comrades Igwe Achese and Eljah Okougbo, president and general secretary respectively also said government should create an enabling environment to engender private, investors’ interest in building refineries for the purpose of improving the local refining capacity.
This, it said, would enable government meet the ever increasing local demand for petroleum products for export.
The oil workers enjoined government to pay more attention massive infrastructural development, repairs and construction of roads and modern railway system, expand energy generating capacity, embark on repairs and rebranding of petroleum products, pipelines network and depots to ensure reconstruct effective distribution of petroleum products.
The body urged the government to cushion the effect of deregulation on Nigerians by creating appropriate palliative measures and expressed displeasure over government’s insistence on kickstarting the deregulation process without proper arrangement.
“The NEC in session express total disappointment at the federal government’s attempt to deregulate the downstream sector of the oil and gas industry with the present situation of import drives petroleum supply, non-functional refineries, obsolete pipeline net works and depots, low local refining and inadequate energy generation capacity compiled with the dilapidated road network in the country”, the communiqué said.
According to the union, the petroleum industry Bill (PIB) when passed into low would ensure transparency and accountability in the oil and gas industry thereby culminating in increased investment and return but wondered why the procrastination of the reform of the industry.
The communiqué reads: “It is even more worrisome and disturbing that some versions of the bill are in circulation giving room for wide speculation and apprehension in the industry and the nation at large. The NEC in session therefore, calls on the National Assembly to make available the authentic version of the stakeholders make meaningful contributions”.
It further called on the National Assembly to immediately set in motion all the processes for the speedy passage of the bill actualise the much anticipated reform in the oil and gas industry.
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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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