Oil & Energy
NMDPRA Seeks Collaboration For Domestic Gas Utilisation
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says more collaborations and interventions are needed to improve domestic gas utilization in the country, despite the various initiatives and policy framework set up by the Federal Government.
Chief Executive Officer of NMDPRA, Engr Farouk Ahmed, who disclosed this in Port Harcourt during a stakeholders’ engagement on gas utilization in Nigeria, assured that the Authority, as empowered by the Petroleum Industry Act, remains poised to enable the growth of the industry.
Ahmed said the engagement with stakeholders was imperative to create the necessary awareness and make the compelling case for industry operators to foster a compliance culture which alone guarantees safer and sustainable facilities.
He further said the engagement seeks to encourage large consumers of petroleum products to not only operate within the regulatory space, but also to become aware of the comparative advantages between the different fuels particularly gas, which has been designated as Nigeria’s transition fuel.
“It is in this regard that the Federal Government has put in place various initiatives and policy framework, including National Gas Expansion Programme (NGEP) and the Decade of Gas Programme (DOGP).
“The PIA has also established within the Authority, the Midstream and Downstream Gas Infrastructure Fund to catalyze gas investments.
“These efforts are yielding significant results; yet more collaborations and interventions are needed to improve domestic gas utilization”, he said.
Also, the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, Ogbugo Ukoha, noted that some of the heaviest consumers of diesel were operating outside the regulatory oversight which was not in accordance with the Petroleum Industry Act.
Ukoha said the objective of the engagement was to enlighten such consumers on the need to urgently obtain the requisite petroleum storage license and to engender the transition from diesel, kerosene and fuel to gas.
According to him, the Authority’s twelve gazette regulations define the licensing regimes, procedures and standards for handling petroleum products which when breached pose increased risks.
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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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