Oil & Energy
Nigeria Records 1,600 Cases Of Pipeline Vandalism – Kachikwu
The Minister of State for Pe
troleum Resources, Dr Ibe Kachikwu, says Nigeria has recorded 1,600 cases of pipeline vandalism since January.
Kachikwu made the disclosure at the 2016 Annual Conference of National Association of Energy Correspondents with the theme, “Low Oil Price: Impact and the Way Forward”, in Lagos on Thursday.
The minister also said that the country recorded over 3,000 pipeline vandalism cases from 2010 to 2015 and added that the impact of attacks on oil and gas pipelines was that there was no money to fund the 2016 budget.
He said that militancy in the Niger Delta had destabilised the country’s oil industry and that Nigeria needed to increase its production by 1.1 million barrels per day to meet its target.
The minister said that declining price of oil in the international market had negatively impacted the country’s revenue leading to economic recession.
He said that proactive steps were required to bring Nigeria’s economy back on positive track.
According to him, while vandals wreak havoc on oil facilities and cripple local production, over-supply of product in the market is affecting prices and creating shocks to the economy.
Kachikwu said time had come for the country to face the reality of the time as there was no assurance that the price of oil would peak as being speculated.
He hinged his argument on the fact that OPEC merely controlled 30 per cent of the market while 70 per cent was in the hands of major producers, as such the U.S., Russia and Mexico, which were not OPEC members.
He said that the industry was challenged by six billion dollars cash call indebtedness accumulated over the last five years.
The minister said that with inadequate financing of the industry, no investment had occurred in the sector in the last five years.
He said 643 million litres of petroleum products amounting to N51.28 billion was lost in 2015, while between January and June a loss of 109 million litres of petroleum products and 560,000 barrels of crude had been recorded.
He said that about 850 million standard cubic feet of gas production had been lost from crises and power outage exposure of 2,700MW. to 3,000MW.
The, minister said government was stepping up efforts to make robust policies that would finalise and gazette a comprehensive gas policy, unlock gas potential and ensure effective development of Nigeria’s gas market.
He said the policy would help to transit from gas flare penalty regime to gas commercialisation and shift focus from government built to investor built infrastructure.
Kachikwu said for the industry to rebound, efforts should hinge on developing National Oil, Gas, Downstream, Fiscal Reform policies as well as the Petroleum Industry bill.
He said that local refineries would be scaled up to attain full capacity from the present 60 per cent and added that by 2018, the country would reduce importation of products and finally cease product import by 2019.
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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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