Oil & Energy
NNPC Invests N52bn In Gas Projects
Amidst of rising cost of cooking gas, also known as Liquefied Petroleum Gas, the Nigerian National Petroleum Corporation (NNPC) said it has spent N51.5 billion on various gas projects under the National Domestic Gas Development and Gas Infrastructure Development project between January and August 2021.
Despite producing billions of gas daily, the country still spends billions on the importation of cooking gas, thereby putting pressure on the country’s foreign exchange reserves.
The price of cooking gas in the Nigerian market which sold for between N3,500 and N4,000 for a 12.5 kilogramme cylinder as at January 2021, now sells for between N7,200 and N8,000, depending on the location.
Ironically, the majority of Nigeria’s gas output is either exported or utilised locally for power generation, leaving only an insignificant portion for utilisation as cooking gas.
Specifically, a substantial portion of of the projects financed by the NNPC with the funds over the last eight months were mainly for gas supply to power plants, industries, export terminals and for for projects connected to the Ajaokuta-Kaduna-Kano (AKK) gas pipeline and the Nigerian-Morocco gas project.
Under the National Domestic Gas Development project, the NNPC said it spent N3.17 billion, N3.099 billion, N6.116 billion, N2.534 billion, N4.413 billion, N0.889 billion, N2.527 billion and N6.307 billion in January, February, March, April, May, June, July and August 2021, respectively.
In respect to the Gas Infrastructure Development, the NNPC said in January, February, March, April, May, June, July and August, it spent N2.393 billion, N2.339 billion, N2.748 billion, N3.919 billion, N3.308 billion, N2.977 billion and N4.761 billion.
The recently scrapped Petroleum Products Pricing Regulatory Agency (PPPRA), had a few days ago confirmed that in the month of August 2021, LPG sourced locally stood at 38,040.457 metric tonnes (MT), while imported LPG stood at 47,224.346MT.
However, it noted that in September, locally sourced LPG rose to 49,453.081MT, while imported LPG dropped to 27,125.905MT.
The PPPRA, now subsumed into the Nigeria Midstream and Downstream Petroleum Regulatory Authority, disclosed that government policies and programmes, such as the National Gas Policy (NGP), Nigeria Gas Flare Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and the Decade of Gas declaration were responsible for the quantum of investments currently ongoing in the gas industry.
Some of these investments, according to the downstream regulator, include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.
In terms of policies, the PPPRA noted that the waiver of import duties on LPG production equipment as well as the Zero Value Added Tax (VAT) for locally-produced LPG had heightened the prospects of domestic investment in the gas sector, while a Pioneer Status Incentive for some categories of LPG Investments was also introduced.
Oil & Energy
‘NNPC Spent N15b To Reconstruct Lagos-Badagry Expressway’
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has disbursed N15 billion for the reconstruction of the Lagos Badagry Expressway under the Federal Government Road Infrastructure Tax Credit (RITC) Scheme.
The N15 billion represents a 100 per cent payment of the funding of the Lagos-Badagry Road rehabilitation under the tax credit funding of the NNPC Ltd.
Group Chief Executive, NNPC, Mr Mele Kyari, made this known when he led NNPC’s management team with some top government officials to inspect the ongoing rehabilitation and expansion of Lagos-Badagry Expressway (Agbara Junction-Nigeria/Benin Border).
The road under rehabilitation is being funded by the NNPC Ltd. under the Federal Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The execution of the scheme is being carried out in collaboration with the Federal Ministry of Works and Housing as the supervisor and Federal Inland Revenue Service (FIRS) for NNPC’s tax obligations deductions.
This is in response to address the plight faced by petroleum products marketers in transportation which affects nationwide distribution.
Kyari said the fund disbursed was part of the N621.24 billion earmarked for the reconstruction of 21 roads nationwide under the scheme.
He expressed satisfaction over the stage of the road development.
“We are covering 1,804.6mkm across the country and taking another set of over a trillion naira investment on infrastructure in Nigeria, believing that with the tax credit system which Mr President has put in place, very soon there will be massive change.
“NNPC as the enabler will consider from its cash flow and fund whatever FIRS and Ministry of works approve for the company”, he said.
The Minister of Works and Housing, Mr Babatunde Fashola, represented by the Director, Highways, Roads and Rehabilitation of the Ministry, Mr Folorunsho Esan, said the intervention of the NNPC sped up the reconstruction of the expressway.
Esan said the project was 40 per cent completed.
“In the next 12 months we should be able to deliver this project because the drainages are in place, just for earth works and pavement works, it cannot take us more than 12 months,” he said.
Speaking on the gridlock being caused by the Lagos-Ibadan Expressway project, he said the contractor would clear all impediments and move out of site by December 15 to make the highway free for Yuletide.
Oil & Energy
Oil Marketers Urge Buhari To Crash Diesel Price
Petroleum marketers under the platform of Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) rose from their 2nd National Executive Council (NEC) meeting last week, within a plea to President Muhammadu Buhari to direct the Central Bank of Nigeria (CBN) to make dollars available at official rate to oil marketers.
This, they said, will enable them import diesel, end petrol scarcity, and ultimately save the Nigerian economy from sinking, saying that dollar support should be available till Dangote Refinery comes on stream later in the year.
The association, among others, urged the National Assembly to immediately enact a Bill for the establishment of Energy Bank for easy transaction in petroleum products in the sector.
National President of the Association, Mr Benneth Korie, who briefed the media after the NEC meeting in Abuja, noted that the bulk of the operational challenge peppering marketers and depot owners spring from expensive diesel which hovers around N850/litre.
While thanking President Muhammadu Buhari for approving a higher bridging cost payment to transporters, Korie said the operators’ challenges were far from over as oil marketers and depot owners spend about N20 million weekly on diesel to power their operations, thus eroding their profits.
The association urges the National Assembly to review the policy of taxation as it affects petroleum products supply and distribution chain.
Oil & Energy
Senate To Honour Brave Petrol Tanker Driver
The Senate has resolved to honour Ejiro Otarigho, the brave tanker driver who drove a burning tanker from danger zone to avert a tragic fire incident in Agbarho, Delta State.
The Senate has also recommended Ejiro to President Muhammadu Buhari for National Honours.
This followed a motion moved by the Deputy President of the Senate, Senator Ovie Omo-Agege, and co-sponsored by Senator James Manager and Senator Peter Nwaoboshi, at plenary.
It would be recalled that in a rare act of bravery, Ejiro had last week driven a burning tanker from danger zone to avert what could have been a tragic fire incident in Agbarho, Delta State.
The incident happened last Friday when Ejiro drove the burning truck for 25 minutes from a densely populated area to Agbarho River where the tanker was completely razed in the inferno. The act was captured by onlookers and had gone viral.
Rising under Order 45 and 52 of the Senate Standing Order 2021 (as amended), Senator Omo-Agege stressed that but for Ejiro’s courage, a major fire disaster which would have claimed several lives and property could have happened in his senatorial district.
The Delta Central lawmaker noted that Ejiro’s “extraordinary display of courage, reflex application of special driving skills, and huge risk to his own life, prevented a huge national tragedy and catastrophe by driving a burning tanker loaded with inflammable petroleum products from residential areas to safety so that thousands of our people may not die in an inferno that would also have consumed so much property in Agbarho, Delta State on Friday, June 10, 2022”.
The driver’s audacious act of heroism, he stressed, has saved the nation from national tragedy and mourning.
Accordingly, the Senate resolved to “invite Mr. Ejiro Otarigho to the Chamber of the Senate for public commendation by the President of the Senate, Senator Ibrahim Lawan.
“Recommend Mr. Ejiro Otarigho to His Excellency, President Muhammadu Buhari, GCFR, President and Commander-in-Chief of the Armed Forces of Nigeria, for a befitting National Honour as Mr. President may deem fit for his extraordinary act of bravery, courage and skill that prevented the loss of human lives and property on a massive scale”.
President of the Senate, Senator Ahmad Lawan, who presided over plenary, hailed the driver for risking his life to drive the burning truck out of residential area to save lives.
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