Oil & Energy
NNPC Condemns Pipeline Vandalism …Says Economy, Budget Under Threat
The Nigerian National
Petroleum Corporation (NNPC) said that the Nigeria’s economy and the 2016 budget are under threat from pipeline attacks and oil theft.
The Group Managing Director of NNPC, Dr. Maikanti Baru, stated this when he led a delegation of the corporation’s top management on courtesy call on the Chief of Defence staff, General Gbariel Olonishakin at the Defence Headquarters in Abuja.
Baru appealed to the Nigeria Military to help secure critical oil and gas infrastructure noting that the corporation had incurred huge losses due to the nefarious activities of pipeline vandals and oil thieves.
According to him, about 1,447 cases of pipeline hacking were recorded during the period.
He said Nigeria lost N51.3 billion to pipeline vandalism in 2015, hence the need for military backup especially as the corporation prepares to re-enter Chad Basin and Benue Trough for oil exploration.
He said over 3000 vandalism incidents were recorded yearly from 2010-2015 and that in 2015 alone, pipeline losses of PMS volume of over 643 million litres, valued at over N51.28 billion was to incurred.
“The 2016 national budget plan was based on 2.2 million barrels per day of crude oil production. However, the budget plan is now grossly impacted due to renewed militancy with about 700,000 barrels per day of oil production curtailed due to pipeline vandalism”, he said.
He stated further that the domestic natural gas supply to power is equally impacted with estimated drop of about 50 per cent from 1400 million standard cubic feet of gas per day resulting to significant power outage exposure of between 2500 mw and 300 mw as a result of direct and indirect impact.
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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.
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