Oil & Energy
Pipeline Vandalism: Operators Task FG On Modern Technology
Fire fighters battling to put out fire from two burning fuel tankers loaded with petrol at ascon filling station on Lekki road 13 in Lekki, Lagos, recently. Photo: NAN
Some oil and gas experts
have urged the Federal Government to deploy modern technology in combating the activities of crude oil thieves in the Niger Delta area of Nigeria.
They told newsmen in Lagos that such technology should include Closed Circuit Television and other electronic devices that could indicate that a pipeline was being tampered with.
They also said that such devices gave timely images and reports to the Nigerian National Petroleum Company (NNPC) and other relevant bodies monitoring the pipelines to promptly tackle the problem.
The experts in the industry added that deploying such electronic monitoring devices would assist in reducing the huge national revenue loss through illegal bunkering of crude oil.
Managing Director, Tec Flow Oil and Gas Ltd., Mr Simon Francis, said the issue of oil theft was a serious challenge that needed to be dealt with through a new mechanism.
Francis said that the use of technology would contribute immensely to combating crude oil theft and incessant vandalism in the nation’s pipeline network.
He also urged the government to encourage private sector participation in the oil sector, adding that the organised private sector participation would expand the profit outlay of operators.
“Crude oil theft remains a big challenge to the socio-economic development of the country.
“Government should also deregulate the downstream sector of the oil and gas. This is the only way to address fuel scarcity,’’ he said.
Former National Publicity Officer, Petroleum, National Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Seyi Gambo, said that government should focus more on ways to liberalise the downstream petroleum sub-sector.
According to Gambo, the passage of the Petroleum Industry Bill remains the only way to address sector’s challenges.
He said that the bill identified specific reforms needed to be championed by the NNPC and operators in the entire sector.
He advised the government to privatise the country’s refineries since government could no longer maintain them adequately.
“Government can embark on modular refineries in some state as such investments could be part of the investments that will create jobs for Nigerians,” he said.
Contributing, Director of Operations, IPMAN, Mr Mike Osatuyi, also lamented the non-passage of the Petroleum Industry Bill by the National Assembly.
Osatuyi said that the bill would have gone a long way to address the problems in the petroleum industry, adding that the industry should be handed over to private investors.
The IPMAN boss urged the government to diversify its sources of power generation, adding that it should exploit other alternative sources of energy.
“Government should tap into other cleaner and renewable sources of energy, like solar, wind and other renewable energy sources.
“The incessant vandalism of gas pipelines and other electricity apparatus remains a big challenge for government to tackle.
“The government should also arrest and prosecute anybody caught in the act of vandalism to serve as a deterrent to other criminals.
The Federal Government has offered explanation with regard to recent changes to fuel sulphur content standards for diesel.
The Government said the change was part of a regional harmonisation effort, not a relaxation of regulations for local refineries.
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, told newsmen that the move was only adhering to a 2020 decision by the Economic Community of West African States (ECOWAS) which mandated a gradual shift to cleaner fuels across the region.
Ahmed said the new limits comply with the decision by ECOWAS that mandated stricter fuel specifications, with enforcement starting in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.
“We are merely implementing the ECOWAS decision adopted in 2020. So, a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.
He said importers were notified of the progressive reduction in allowable sulphur content, reaching 200 ppm this month from 300 ppm in February, well before the giant Dangote refinery began supplying diesel.
Recall that an S&P Global report, last week, noted a significant shift in the West African fuel market after Nigeria altered its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm, sparking concerns it might be lowering its standards to accommodate domestically produced diesel which exceeds the 200 ppm cap.
High sulphur content in fuels can damage engines and contribute to air pollution. Nevertheless, the ECOWAS rule currently allows locally produced fuel to have a higher sulphur content until January 2025.
At that point, a uniform standard of below 5 ppm will apply to both domestic refining and imports from outside West Africa.
Importers were previously permitted to bring in diesel with a sulphur content between 1,500 ppm and 3,000 ppm.
It would be noted that the shift to cleaner fuels aligns with global environmental efforts and ensures a level playing field for regional refiners.
The Port Harcourt Electricity Distribution (PHED) plc says it has commenced implementation of the April 2024 Supplementary Order to the MYTO in its franchise area while assuring customers of improved service delivery.
The Supplementary order, which took effect on April 3, 2024, emphasizes provisions of the MYTO applicable to customers on the Band A segment taking into consideration other favorable obligations by the service provider to Band A customers.
The Head, Corporate Communications of the company, Olubukola Ilvebare, revealed that under the new tariff regime, customers on Band A Feeders who typically receive a minimum supply of power for 20hours per day, would now be obliged to pay N225/kwh.
“According to the Order, this new tariff is modeled to cushion the effects of recent shifts in key economic indices such as inflation rates, foreign exchange rates, gas prices, as well as enable improved delivery of other responsibilities across the value chain which impact operational efficiencies and ability to reliably supply power to esteemed customers.
“PHED assures Band A customers of full compliance with the objectives of the new tariff order”, he stated.
Ilvebare also said the management team was committed to delivering of optimal and quality services in this cost reflective dispensation.
The PHED further informed its esteemed customers on the other service Bands of B, C D & E, that their tariff remains unchanged, adding that the recently implemented supplementary order was only APPLICABLE to customers on Band A Feeders.
The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement would see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, would produce PMS, AGO, ATK, LPG for both the local and international markets.
It stated, “NNPC Limited’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.
By: Lady Godknows Ogbulu
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