Oil & Energy
PENGASSAN Tasks FG On Gas Sector
The Petroleum & Natural Gas Association of Nigeria, PENGASSAN has urged the Federal Government to speed up work to further develop the gas sector.
The call was made in an address presented by the President of the association, Comrade Festus Osifo, at its National Executive Council meeting held in Imo State, last week.
According to him, the gas sector has the potential to create thousands of jobs, solve domestic gas needs while increasing revenue for improvement of the economy.
“Nigeria’s gas reserves currently estimated at 182 TCF (trillion cubic feet) with a projected growth rate of over 70% by 2025 have the potential of being a key player in the emerging global natural gas market in the world.
“Sadly, even with this huge gas reserve, not much has been achieved in areas of effective exploitation and utilization for both commercial and domestic purposes.
“With electric power generation at its lowest ebb, army of unemployed youths, climate change caused by greenhouse emissions from flare-out, it becomes imperative that we must exploit the gas reserves now and use it to tackle some of the listed challenges.
“While we commend the Government in its efforts in boosting gas utilization through various gas initiatives and projects, it is pertinent that we hasten the pace of work as the sector has the huge potential to create thousands of jobs, solve our domestic gas needs while increasing revenue for improvement of our economy.”
Regarding the Petroleum Industry Bill (PIB), the Association in partnership with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) canvassed for a bill that will attract more investments to the oil and gas sector and lay more emphasis on local content which will in-turn create more job opportunities for its members and Nigerians.
On the refineries, PENGASSAN reiterates its advocacy on the need to fix the nation’s refineries and its inclusion in the steering committee as set up by the Nigeria National Petroleum Corporation (NNPC).
“NNPC places a moral burden on us to continue the agitation for the rehabilitation of the four refineries. This will not only increase our revenue base but will also provide more job opportunities to our youths. We can confirm that some significant milestones have been achieved in this regard. Our commitment is to ensure that agreed specifications are adhered to by the contractors and we shall live up to expectation in this regard while working with other relevant stakeholders”, it said.
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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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