Oil & Energy
Reps To Investigate Private Refineries Delay
The House of Representatives Committee On Petroleum Resources
Downstream says it is to find out why private refineries licenced by the federal government has not started work nine years after they were granted permission.
Raising the motion on the floor of the House, Hon. Rose Okoli and 23 others lamented that the Federal Government was losing so much through subsidy and importation while companies licenced to refine the product locally have failed to commence work for about a decade.
“Government in 2002 issued licences to 18 private refineries and after nine years the private refineries have not commenced actual refining of petroleum.
Meanwhile, the House of Representatives has described the removal of fuel subsidy by the President as premature.
This is part of the recommendation approved by the House while considering the report of the 2012 to 2015 Median Team Fiscal Framework and Fiscal Strategy Paper submitted by President Goodluck Jonathan.
The federal legislators adopted the exchange rate of N155 to a dollar for the period and 70 dollars as a benchmark price of crude oil for the period.
Similarly, a Lagos lawmaker, Mr. Hodewu Avoseh has called on the Minister of Finance, Dr. Ngozi Okonjo-Iweala to organise stakeholders forum and educate Nigerians on the need to remove the fuel subsidy.
Avozeh in an interview with newsmen said that the policy would be beneficial to the nation if the accruing funds were well-utilised.
The lawmaker representing Badagry in the Lagos State House of Assembly said the current subsidy favoured only a section of the country and advised the Federal government to utilise money accruing from it to repair the existing refineries, improve electricity supply and other basic infrastructure in the country.
Said he: “The removal is the best for Nigerians, both directly and indirectly, based on the benefit to the people but because the government failed to explain, that is why the opposition is so high.”
Avoseh observed that the agitation against removal of the subsidy might be sponsored by those who had been benefiting from looting funds from the fuel subsidy and urged the Federal Government to sensitise Nigerians on the benefits of the removal in order to salvage the nation’s oil sector.
Shedie Okpara
Oil & Energy
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Oil & Energy
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.
