Oil & Energy
‘FG Loses N5.9bn Annually To Illegal Bunkering, Pipelines Vandalisation’
A group known as the Association of Surface Tank Oil and Gas Retailers, (ASTOGRN) says available statistics have revealed that oil bunkering activities and pipeline vandalisation in the Niger Delta costs the Federal Government about N5.9 billion annually.
Chairperson of the Rivers State chapter of the association, Comrade Patience Uche, made the disclosure during an exclusive interview with The Tide in Port Harcourt, at the weekend.
Apart from the huge loss in revenue, she said oil bunkering and pipeline vandalisation had also resulted in the colossal loss of lives as most of the vandals were always consumed in pipeline explosions during the bunkering activities.
Comrade Uche, who decried the increasing involvement of youths in illegal bunkering, advocated for a more proactive and corrective measure to bring lasting solution to the vice.
According to her, part of the solution is the building of modular refineries in the Niger Delta and the engagement of the youth in the oil and gas sector.
“Most of the youths who got involved in illegal oil bunkering and lost their lives in the process could have played a more creative and productive role in the oil and gas industry if they were functionally trained.
“The Federal Government should be serious about the establishment of modular refineries and the training of youths to participate in the process, this will go a long way to tackle the challenges of illegal bunkering in the Niger Delta, she said.
Comrade Uche said the major drive of the association was to make oil and gas business rural based, “to improve the socio-economic and general living conditions of its members”.
She was optimistic that the association will achieve the targets by encouraging its members to get licences from the Department of Petroleum Resources (DPR) to be actively involved in the oil and gas business.
She pointed out that the initiative would also reduce petroleum supplies from foreign marketers through importation of products, kill the spirit of bunkering and increase the federal government’s revenue on surface tank retails business in the country.
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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.
