Oil & Energy
Nigeria To Become World’s Largest Manufacturer Of Gas Cylinders
Nigeria is on the verge of becoming the world’s largest manufacturer of composite cylinders following the recent ground breaking of Rungas ALFA plant at Alaro City, Free Trade Zone, Epe, Lagos State.
The facility and its sister plant – Rungas Prime – in Polaku, Bayelsa State, are being developed with equity investments by the Nigerian Content Development and Monitoring Board, (NCDMB), and will on completion have a combined capacity of over 1.2 million cylinders per annum, surpassing the record held by a European firm that produces 900 cylinders.
Conducting the ground breaking, the Minister of State for Petroleum Resources, Chief Timipre Sylva, described the cylinder plants as key to achieving deeper penetration of Liquified Petroleum Gas, LPG, and Compressed Natural Gas, CNG, in line with the Federal Government’s commitment to ensure economic diversification using the oil and gas industry as a pivot.
He stated that cylinders are the most visible element of the LPG value chain and the manufacturing facilities will not only bring affordable and durable cylinders to Nigeria but also create countless direct and indirect jobs for citizens.
Sylva commended NCDMB for recording another milestone in the drive to enhance domestic participation and capacity building of indigenous companies in the oil and gas industry.
The Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote, gave the expected completion date of the facility as 12 months and underscored that the Board had proven that it delivers successfully on any project it participates in.
He said the ground-breaking event confirms that Private-Public Partnership is a pragmatic and workable model for putting in place the needed infrastructure, facilities and manufacturing base, to position Nigeria for the opportunities that abound in the region and continent.
He also affirmed the Board’s excitement for being an active participant and a front-runner in taking practical steps to deliver on lofty goals of the ‘’Decade of Gas’’ that is being championed by the Minister of State for Petroleum Resources.
Other interventions by the Board in the gas value-chain include development of LPG storage terminals and jetties, inland gas processing for the production of LPG and propane, infrastructure for gas gathering and injection into gas pipeline networks and CNG facilities, he said.
He explained that the NCDMB was deliberate in going for the Type-3 Composite LPG cylinders considering the unique features such as safety, lightweight, and durability.
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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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