Oil & Energy
Stakeholders Begin Enumeration Of Local Refineries
Following the proposal of the Federal Government to liberalise modular refineries , some groups in the oil-rich Niger Delta region have began enumeration of artisanal refineries and crude oil distillation camps.
Over 200 operators in crude oil distillation camps, known in local parlance as ‘Kpo fire; have began to collate data in Bayelsa State.
Convener of the sensitization exercise, Mr Pat Obiene, said the exercise is a follow-up to the Federal Government’s new policy directive to formalize artisanal refineries.
“This is a follow-up to the pronouncement by the Federal Government on its plan to use modular refineries to fast-track development, so we thought it wise to kick-start this initiative”, he said.
Obiene, disclosed that three groups, Masses Congress, Bayelsa Business Roundtable and Refineries Business Association were collaborating on the data collation exercise to determine the total capacity of local refineries.
The convener, who is a social activist, further said that, the group has designed forms to classify the artisans into categories such as crude point owners, loader, cooker/refiner and dumpsite owner, in order to capture data on the number of workers, daily crude volume and daily turnover.
He said, when processed, the data would be used as basis to determine the size and capacity of the proposed modular refineries suitable for each location.
The President of Bayelsa Business Roundtable, Mr Olaitari Ikemike, explained that the initiative was aimed at networking and cross fertilization of ideas among stakeholders.
According to Ikemike, “this is an effort to bring private sector people together and work for the realization of the modular refinery concept.
“We need to be a catalyst to bring local refinery operators together and ensure our peculiarities are factored in”.
He commended the initiative of the Federal Government, saying with the support of all stakeholders, it would ensure its actualization.
In his own reaction, the Chairman, Modular Refineries Business Asociation in Baylesa State, Mr Clever Oyabara, noted that modular refineries would lay to rest the youth restiveness in the region.
“The policy will be a permanent solution to youth restiveness because a 10,000 barrels per day capacity refinery can create more than 500 direct and indirect jobs”, he said.
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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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