Oil & Energy
FG To Inaugurate Lee Engineering Gas Facility, Q1 2023
The Federal Government is billed to inaugurate Lee Engineering International Machinery Services Limited, an equipment fabrication hub, in the first quarter of 2023 to boost oil and gas production
Chief Executive Officer of Lee Engineering and Construction Company Ltd., Dr Leemon Ikpea, said this at a news conference, Friday, in Abuja.
Ikpea said the factory would be commissioned by President Muhammadu Buhari.
The Tide’s source reports that the facility is an arm of Lee Engineering Group, a leading indigenous oil, gas and power servicing company in Nigeria.
On completion, the facility would produce heat exchangers, especially for gas, high pressure vessels, sccupers and several other equipment used in the oil and gas sector and beyond.
Ikpea, who lauded the Federal Government for enacting the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, noted that the company’s 31 years of existence had been dedicated to the servicing of Nigeria’s oil and gas sector.
He said the implementation of the NOGICD took a step further in encouraging the local manufacturing and fabrication workshop to boost local content and stem importation.
Ikpea said the factory would have been commissioned this period to mark its 31st anniversary if not for some technical hitches, which would be resolved in Europe.
“As soon as the issues are resolved the factory will be commissioned in the first quarter of 2023.
“It is going to save money for the country, while there will be patronage by other countries, including Angola and Mozambique.
“We are equally building a Jetty close to the factory for export,” he said.
He said that the Minister of Petroleum Resources, Chief Timipre Sylva and his counterpart in the ministry of Trade and Investment, Otunba Adeniyi Adebayo, had already inspected the factory.
He said the project had also been supervised by the Nigerian Content Development and Monitoring Board (NCDMB).
Ikpea, who pioneered the advocacy for local content, said the move would protect the interest of indigenous contractors.
“We have trained a lot of Nigerians in various part of the world to man the equipment,” he added.
According to him, the foreign companies cannot transfer technology and knowledge to Nigerians, and as such he decided to develop the initiative to drive the process.
Ikpea said he took note of the role some Nigerians played in construction while working with a UK based company which specialised in building oil storage tanks in the 80s during the construction of the Warri Refinery and Petrochemical Company Ltd.
He said the big structures were erected by Nigerians but the foreigners only brought their cranes, forklifts and other equipment being used by Nigerians while they supervised.
“Nigerians were doing the major works, including welding, electrical and erections while the foreigners supervised.
“Working with the British and Italian companies exposed me to the fact that Nigerians are talented, hardworking and committed.
“From that experience, I was inspired to transfer knowledge to others,” he said.
He called on the government to strengthen and sustain the NCDMB to facilitate growth of skills, technology and competence in the country.
Ikpea also called for increased percentage of local content in the oil and gas industry to encourage more indigenous participation.
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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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