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Niger Delta

Gas Flare Falls 0.33% In Q1 2021 To 45.33BCF

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Gas flare in Nigeria’s oil fields fell by 0.33 per cent in the first quarter of 2021 to 45.33billion cubic feet, BCF, compared to 45.48BCF of gas flared in the fourth quarter of last year; latest data from the industry have shown.
Data also showed that on a year-on-year basis, gas flare dropped by 21.75 per cent in the first quarter of 2021 from the 57.93BCF recorded in the first quarter of 2020.
According to the Nigerian National Petroleum Corporation (NNPC), monthly report for February, 2021, data also showed that in 24 months, from March, 2019 to February, 2021, a total of 430.97BCF of gas have been flared.
This is equivalent to 1,720 Giga Watts of power lost in two years, according to power generation expert, Dr Stephen Ogaji of the Niger Delta Power Holding Company Limited.
As part of the effort to curb gas flaring in the country, the Federal Government in December, 2016, launched the Nigerian Gas Flare Commercialisation programme.
The NGFCP was designed as the strategy to implement the policy objectives of the government for the elimination of gas flares with potentially enormous multiplier and development outcomes for Nigeria.
The objective of the NGFCP is to eliminate gas flaring through technically and commercially sustainable gas utilization projects developed by competent third-party investors who will be invited to participate in a competitive and transparent bid process for flare sites.
The Department of Petroleum Resources (DPR), which manages the programme, in a statement explained that the commercialisation approach has been considered from legal, technical, economic, commercial and developmental standpoints.
“It is a unique and historic opportunity to attract major investment in economically viable gas flare capture projects whilst permanently addressing a 60-year environmental problem in Nigeria.
“The NGFCP has offered flare gas for sale through a transparent and competitive bidding process.
“A structure has been devised to provide project bankability for the Flare Gas Buyers, which is essential to the success of the programme”.
Latest data from the programme, according to the Department of Petroleum Resources (DPR), showed that so far 203 companies have been awarded the right to process flared gas from the 178 gas flared sites.
Speaking on the programme at the weekend, the Permanent Secretary, Ministry of Petroleum Resources, Mr BitrusNabasu, noted that despite the slow pace of progress, the Federal Government was determined to end gas flares in the country.
“The process is still on and our intention is to reduce gas flaring as much as possible so that the environment will be safe for us. The process is on and very soon it will be concluded”, he explained.
DPR in its gas flare regulation stated that “flare payments shall apply to any natural gas that is flared and/or vented at the production facilities of the producers”.
Figures from the 2019 Oil and Gas Audit Report of the Nigeria Extractive Industries Transparency Initiative (NEITI), showed that companies paid $307,591 in 2019 as gas flare penalties in the country.
In an interview with newsmen, GNPC Petroleum Commerce Chair in Oil and Gas Studies, University of Cape Coast, Ghana, Prof. WumiIledare, said a lot of investment was needed to end gas flaring in the country.
Iledare, however, observed that gas flaring has gradually gone down in the past few years, accounting for less than 10 per cent of total gas production.
He explained that “there are some gas flaring that cannot be eliminated if you have to keep things running but we must give credit to the Department of Petroleum Resources with respect to gas flaring.
“It is below 10 per cent right now. I still understand that is still the equivalent of about 3,000megawatts of electricity generation”.
He noted that “the investment required to be able to get gas to end-users is massive and it is going, to begin with, a good perception of public policy.
“Unfortunately, the perception of the Public Policy Index, PPI, is still very low. And until governance of the oil and gas industry is properly defined and all these amorphous regulatory agencies well defined, a risk-averse person will not invest in this type of business environment.
“This gas flaring that people are talking about, the opportunity cost to taking the gas to end-users is massive and there must be guarantee return on investment. If it is not there nobody will invest”, he added.
Speaking on the gas flare situation, the President of the Nigerian Association of Energy Economics (NAEE), Prof YinkaOmorogbe, noted that the Federal Government must demonstrate the political will to end gas flaring in the country by first ending the use of gas flare penalty as a source of revenue.
Omorogbe stated that the penalty must be seen as a punitive measure and strong enough to deter companies from flaring gas.
According to her, “We have to have the political will to not flare gas even if it means shutting down certain fields that are producing right now.
“Secondly, you have to seriously pursue your gas utilization projects and ensure that the gas utilization projects are using up associated gas that would otherwise be flared.
“Thirdly, you need to ensure that you don’t turn the associated gas penalties into money-making ventures but instead make them incredibly punitive. So punitive that it is better to shut down than to flare.
“So, the first thing is the political will to say I really don’t want this flaring anymore. Once you do that everything else will fall into place.
“It is going to cost us something first in the beginning but there has to be the determination to end it. It will also help us to reduce carbon emission on one side to offset emission on another side”, she explained.
On his part, the Director, Centre for Petroleum, Energy Economics and Law, University of Ibadan,Prof. AdeolaAdenikinju, also stated that the Federal Government must demonstrate the will to end gas flaring in the country.
Adenikinju held that once there is political will and clear policy to end gas flare, it would create incentives for investment because it will create opportunities for infrastructure that would utilize the gas.
“The government must create incentives for private capital to go in and create investments that would support infrastructure and utilization of the gas because it doesn’t pay you to shut down production and get zero production because you are flaring. So, you have to create solutions and those solutions are created by the market.
“So once, the policy is there and there is the conviction that the policy is not going to be reversed it automatically generates incentives for private capital investments and infrastructure that will also follow. That is the starting point, we must be ready to want to end gas flaring”, he stressed.

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Niger Delta

NCDMB Boss Lauds SNEPCO, Others Over Project Execution

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The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has commended Shell Nigeria Exploration and Production Company (SNEPCo) and the Bayelsa State Government for the completion and inauguration of a Learning Centre and Digital Library at the state-owned Niger Delta University (NDU), Wilberforce Island, Amassoma, in the Southern Ijaw Local Government Area of the State.
The Tide learnt that the state-of-the-art facility which boasts three floors–a 2,300 seater Library Building, and a fully equipped digital library, also has a Wi-Fi Lounge, offices, digital educational technology rooms, a 500KVA generator housed within a purpose-built external structure, 500KVA transformer, a dedicated water facility and overhead tank.
Other facilities contained in the infrastructure, according to a statement from the Corporate Communications Directorate of the NCDMB, include a restaurant/recreation hub.
Represented by the Director of Corporate Services of the Board, Dr. Ama Ikuru, the Executive Secretary prefaced his address at the commission ceremony which took place recently with a word of appreciation to the State Government for making the environment conducive for business activities.
“Those of us in the oil and gas industry know that without the enabling environment, there’ll be no project and without projects, there will be no local content growth and no projects like this one.
“The project is part of SNEPCo’s commitment to the Nigerian Content Human Capital Development Initiative.
“I’ll thank Shell Nigeria Exploration and Production Company Limited (SNEPCO) and by extension, Shell Companies in Nigeria, for showing faith, commitment, and good execution in the delivery of this project.
“I also want to commend the Nigeria’s Upstream Investment Limited for approving the execution of this project”, the NCDMB boss said.
Ogbe continued that, “SNEPCO was not compelled by legislation, nor the force of regulators, nor by community agitation, but they saw the need to support education in Nigeria and worked with their partners to conceptualize and commence the execution of this project.
“The role of the NCDMB played in facilitating the project execution was that when funding for completion of the project became an issue, they sought permission from the NCDMB to complete the project. And so their request was promptly granted, with assurance of ‘our total support”.
He noted that the Niger Delta University was ready to soar above her peers in a digitalization and artificial intelligence-dominated academic world with the completion of the facility, saying research projects will be completed on time, new findings will be published, students will graduate on time and lecturers will have the best materials for their publication and receive their elevation.
“We’re immensely proud of this achievement. In delivering this project, Shell Companies in Nigeria have proven beyond doubt that they are truly partners for Nigeria’s development”, the ES restated.
Also speaking, Managing Director, SNEPCO, Mrs. Elohor Aiboni, said “the learning complex embodies the commitment of her company to improving access to education for all Nigerians, and that the achievement is the culmination of a vision shared by Nigerian National Petroleum Company Limited (NNPCL), SNEPCo, our co-venture partners, the Nigerian Content Development and Monitoring Board and the Niger Delta University”.
On the wider benefits of the project to the local community and others, Mrs Aiboni noted that sustainable development is at the core of the firm’s mission, saying the construction process incorporated knowledge transfer programmes, empowering 24 individuals from the Niger Delta University with hands-on experience in complex engineering through industrial training opportunities.
“This initiative equips them with a solid foundation for successful future careers”, she said.
In the same vein, Managing Director, Shell Petroleum Development Company of Nigeria Limited, and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, said the history of Shell companies in Nigeria began in Bayelsa State.
He described the Learning Centre and Digital Library as a signature project in the Niger Delta, and thanked industry colleagues for the fruitful collaboration.
Okunborn also reassured that Shell Companies in Nigeria will continue to maintain close partnership with the Bayelsa State Government.
In his own remarks, Deputy Governor of the State, Senator Lawrence Ewhrudjakpo, thanked all who initiated and completed the facility.
He urged Shell and other oil and gas industry players never to relent in partnering the State, advising the university community to put the facility to the best use.
”For the students, the time to give excuses for your failure is over. And for the lecturers, the time to give excuses for your inability to research has also expired”, the State Deputy Governor said.
The Tide gathered that the construction of the Learning Centre and Digital Library was initiated by SNEPCo in 2007 to enhance educational infrastructure in the country.

 

Ariwera Ibibo-Howells, Yenagoa
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Niger Delta

Diri, Others Task NDDC, MNDD On Collaboration …As Tinubu Promises East-West Road Completion

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Bayelsa State Governor, Senator Douye Diri, his Delta State counterpart, Chief Francis Oborevwori, and other stakeholders have called on the Niger Delta Development Commission (NDDC), and the Ministry of Niger Development (MNDD) to collaborate more effectively with sub-national governments in the region.
They spoke at the 6th meeting of the National Council on Niger Delta (NCND) at the Unity Hall, Government House, Asaba, Delta State, recently with the theme, “Stimulating Strategies for Economic Growth and Development in the Niger Delta Region”.
Declaring the meeting open, President Bola Ahmed Tinubu, represented by the Minister of Steel Development, Prince Shuaibu Abubakar Audu, assured that his administration would prioritize the completion of the East-West Road in view of its importance not only to the Niger Delta states, but to the entire country.
He said the administration was repositioning the Niger Delta Development Ministry and the NDDC to harmonize all development plans of agencies and partners operating in the region into a single integrated regional development plan to actualize their mandate.
He restated his commitment towards resuscitating refineries in the country to ensure petroleum products availability and reduction in their retail prices.
He said: “It will gladden you to note that my administration has demonstrated interest in repositioning the NDDC to ensure it delivers optimally on its objectives and mandate, and to make it achievements manifest in different sectors of life across the Niger Delta region.
“The East-West Road project is the largest infrastructure project in Nigeria today, and the reason is not far-fetched; It is a very strategic road connecting the nation’s busiest and foremost commercial cities in the country.
“Its completion is a priority to this administration, and this I assure you will be delivered in the very nearest future. On a broader scale, we are dedicated to ensuring that our local refineries across the Nicer Delta and other parts of the country are made operational soonest”.
In his goodwill message, Governor Diri noted that effective collaboration between the Niger Delta Ministry, the NDDC and the nine states would fast-track the socio-economic development of the Niger Delta region.
The Governor, who was represented by his Deputy, Senator Lawrence Ewhrudjakpo, stated that such cooperation would equally enable the ministry and the interventionist agency to better deliver on their mandate.
He stressed the need for big ticket infrastructural projects, such as seaports, roads, bridges and gas turbines to generate power for aggressive industrial development for job and wealth creation in the region.
While thanking the NDDC and the Ministry of Niger Delta Development for organizing the meeting, Governor Diri cautioned all stakeholders against paying lip service to the implementation of resolutions reached at such meetings.
In their separate remarks, the Governor of Delta State, Chief Francis Oborevwori and his Imo State counterpart, Senator Hope Uzodinma, said it was high time the resources meant for the region were used for its development.
Chief Oborevwore emphasized the need for NDDC and the Niger Delta ministry to complete their uncompleted projects in the region, particularly the East-West road, which had been under construction for decades.
Presenting a 3-page communique at the end of the meeting, the Minister of Niger Delta Development, Mr Abubakar Momoh, said Council noted the effort of his ministry on agricultural training and empowerment initiatives in the region for job and wealth creation among youth, women and vulnerable groups.
He added that Council also considered and approved some memoranda, including the one submitted by the Bayelsa State Ministry of Environment on the need to increase investment in the provision of storage facilities and value chain to preserve agricultural produce for sustained growth.
The communique read in parts:”That the Ministry of Niger Delta Development (MNDD) and the Niger Delta Development Commission and the nine states take appropriate steps to train and empower youths on the conversion of PMS to CNG-powered machineries in the Niger Delta region”.
Momoh announced that the date for the next National Council on Niger Delta (NCND) meeting, which is scheduled to hold in Imo State would be communicated in due course.
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Niger Delta

Calabar-Itu Road: C’River Set To Compensate Property Owners

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The Cross River State Government says it is set to pay compensations to property owners along the Calabar-Itu highway to fast track the implementation of the road project.
The State Commissioner for information, Mr. Erasmus Ekpang, disclosed this in an interview with The Tide’s source in Calabar on Friday.
Ekpang said the state government would spend about N400 million to pay the compensations.
The Commissioner stated that the move was part of the decisions reached at the State Executive Council meeting held reverently.
According to him, the state government shall only pay compensations to those whose property were identified in the original demolishment.
He said although it was the responsibility of the Federal Government to pay, the Governor Bassey Otu-led government chose to prioritize the welfare of the people.
“We are also doing this to avoid delays, we have decided to put our people first by bearing this burden”, said.
Ekpang said the Otu-led administration had also concluded arrangements for an aggressive urban renewal drive in the three senatorial districts of the state.
“We are embarking on massive rehabilitation and construction of roads in Ogoja and Ikom. Traffic and street lights will be installed at major junctions and roads in the areas”, he said.
The Commissioner said the move was is in line with the administration’s commitment to decentralise development in the state.
“This move will create avenues for our people outside the urban centre to benefit from governance”, he said.
Ekpang continued that the Governor had approved the construction of 5km of Yahe-Wanokom-Wanikade-Benue Border Road (Phase 1) and 3km of Yache-Alifokpa Road (Phase 1).
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