PETAN Urges Privatisation Of Oil, Gas Pipelines

Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, has called for the privatisation of Nigeria’s oil and gas pipelines.
Ogunsanya made the call shortly after the  Nigeria International Pipeline and Security Conference (NIPITECS), held in Abuja, at the Weekend.
In a Statement, Ogunsanya, who described the move as a “commonwealth solution” that would ensure the efficiency and sustainability of the nation’s critical oil and gas industry, said it would also offer the opportunity for private investors to hold 51 per cent ownership of the nation’s pipelines.
Ogunsanya said oil producers, including NNPC Ltd. and the Independent Petroleum Producers Group (IPPG), would then serve as shareholders.
According to him, this model has been successful in the case of the Nigeria Liquefied Natural Gas (NLNG) project, which he said remains a pillar of the industry, noting that there was room for further improvement, including the establishment of more LNG facilities and an increase in gas feedstock production.
“Globally, the life expectancy of populations is greatly impacted by energy security, which ensures the availability of healthcare, infrastructure, affordable food, housing, and education.
“With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it highlights a critical lack of energy security, and by extension, a deficiency in essential services for the majority of Nigerians”, Ogunsanya said.
The PETAN boss noted that oil and gas remain the catalyst for Nigeria’s economic growth urging more capacity building across the value chain, including exploration, production, refining, transportation, and downstream.
Ogunsanya insisted that developing in-country capacity would position Nigeria as one of the top 20 economies in the world.
He decried the lack of effective use of proceeds from crude oil sales over the years to develop the country.
He, however, commended indigenous companies, particularly those in professional associations, for driving local content, building capacity and creating jobs.
“These efforts have a multiplier effect, benefiting both the oil and gas value chain and the regional economy”, he said.
Ogunsanya also recognised the importance of the Petroleum Pipeline and Storage Company (PLAN), which plays a crucial role in transporting oil and gas to refineries, gas plants, and power stations.