Oil & Energy
CORAN Lauds NUPRC Over Domestic Crude Supply Obligations Enforcement
The Crude Oil Refineries-owners Association of Nigeria (CORAN) has lauded the move by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over what it described as a decision by the Commission to enforce domestic crude supply obligations.
It said the non-implementation of the obligations has so far stifled some local refineries from optimizing production and making refined products available in the local market.
The Chairman, CORAN, Momoh Oyarekhua made the commendation during the NUPRC’s management meeting with producers and members of CORAN in Abuja, at the Weekend.
In a Press Release, Oyarekhua said the commission deserved to be lauded for the decision as well as being fair-minded in its conversation with the producers.
Recall that CORAN, last month, held a meeting with the Minister of State for petroleum, Heineken Lokpobiri, where the association sought the minister’s intervention to boost crude oil supply to members as well as reduction of fees they pay to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for every litre of product they refine in-country.
The CORAN also advocated for the establishment of a Refinery Intervention Fund to assist local refineries expand their capacity from the current 27,000 barrels per day to about 400,000 barrels per day.
This follows series of other consultations and meetings by CORAN with government agencies and representatives with a view to fostering the core issues affecting local refining of crude in Nigeria
Following the meeting Oyarekhua hinted that “We have met with the NUPRC, on the issue, because the matter is captured under the domestic crude oil supply obligation which is clearly stipulated in the PIA, we have intimated them with the production capacity of local refiners and also sought their commitment on domestic crude obligation to all modular refiners”.
“The modular refineries that are currently producing are starved of crude and even when the crude is available, the local producers want them to pay for it in US dollars”.
This, position, CORAN said must be addressed to enable Nigerians enjoy self-sufficiency in crude refine.
“This meeting and the assurance that NUPRC will fulfill the request to enforce domestic crude supply obligations to local refiners brings to a new positive dimension the quest by CORAN for its members to be given the equal playing field and enabling support to deliver on its mandate of providing refined petroleum products to the Nigerian market at very affordable rates to users”, Oyarekhua stated.
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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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