Oil & Energy
PIB Won’t Be Rushed Into Law -Senate
The Senate will not rush the passage of the Petroleum Industry Bill (PIB) into law to avoid short changing Nigerians, the chairman of its committee on Gas Resources, Senator Nkechi Nwaogu, has said.
She said efforts were being made to ensure the speedy passage of the Bill, adding that it was the desire of the committee to ensure that the legistlation WAs all –encompassing, spelling the dos and don’ts in the oil and gas industry.
Senator Nwaogu said the bill was such an important document that should be given priority attention because it would remove fears about the oil industry, especially the gas sector. She added that if passed into law, it would address bottlenecks in oil and gas operation in the country.
The Bill has passed the first and second readings and is at the domain of public hearing. She noted that it would be detrimental to the economy to rush the process of passing the Bill into law, with out allowing experts’ input. This is to ensure that, at the end of the day, the Bill would be seen as a democratically assembled document comprising inputs from –experts in oil and gas and other sectors, senator Nwaogu said.
“That is why we are going to hold a public hearing, and for my committee on Gas. We want to ensure that this document has a transparently identifiable dos and don’ts for gas exploration, production and processing and gas distribution. We don’t want a situation where we would say we have a petroleum industry law that does not take into account the peculiarities in gas exploration, processing and distribution”, she stated.
“We want to ensure that the volume of gas we have translates into increase in revenue profile for the country, and ensure that the new document gives opportunity for investment in the gas sector, as well as ensure that there would be easy entry into gas business in the country and easy exit of gas business at the same time.
“We expect the petroleum industry law as it affects gas, would help create more wealth for Nigeria, more employment for Nigerians, and at the end of the day place Nigeria in the committee of nations as regards gas production and gas exploration,” adding that domestic gas development could be used to reduce the continuous abuse of our environment through deforestation and through gas flaring by putting a stop to the practice.
She said if there is a law that prohibits gas flaring and ensures that we create a conducive environment for investors to come into the gas infrastructure business, firms would come in from outside the country that would want to establish a network of gas pipelines.
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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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