Oil & Energy
NNPC Spends N18bn On Refinery Rehab In First Quarter
The Nigerian National Petroleum Corporation (NNPC) has said it spent N18.22 billion on refinery rehabilitation between January and March 2022.
In its presentation to the Federation Account Allocation Committee (FAAC) for April 2022, the NNPC stated that the amount was deducted from its revenue for the period, which among other expenditures, ensured that it did not make any allocation to the federation account between January and March.
The NNPC noted that N9.11 billion was expended on the refineries in January 2022, while another N9.11 billion was spent in March.
It added that N11.667 billion was spent on pre-export financing in the first quarter of 2022, comprising N5.833 billion in January and the same amount in March.
Pipeline security and maintenance cost gulped N4.037 billion of the NNPC’s finance over the first three months of the year, with N1.056 billion, N0.368 billion and N2.613 billion spent in January, February and March, respectively.
The company further stated that in the month under review, it spent a total of N5.07 billion on frontier exploration services, involved in the search of hydrocarbon in the northern part of the country and other inland basins, spending N3.884 billion in January and N1.185 billion in March.
The Nigeria-Morocco gas pipeline project, according to the NNPC’s presentation, gulped N1.504 billion of its finance, with N0.752 million spent in January and March, respectively.
The NNPC disclosed that it spent N675.937 billion in three months on under-recovery, another name for fuel subsidy, stating that in January 2022, it spent N210.382 billion; while in February and March 2022, it spent N219.78 billion and N245.77 billion, respectively, on subsidy for petrol.
The corporation added that it spent N3.524 billion on the National Domestic Gas Development project, with N2.28 billion spent in January 2022, while in March, it spent N1.243 billion.
Gas infrastructure development projects, according to the NNPC, slashed N2.528 billion from its finances in January 2022 and N1.074 billion in March, leading to a cumulative deduction of N3.602 billion in the first quarter of 2022.
The NNPC noted that it earned $88.93 million from the export of crude oil in March 2022, while it earned $32.04 million from gas export and N259.54 billion from the domestic sale of crude oil and gas in the same month.
In relation to the Nigeria Liquefied Natural Gas (NLNG), the NNPC said: “Feedstock gas receipt was $143.69 million. This includes receipts of $54.72 million and $21.29 million, which were expected in the previous month but slipped into the current month. Other related NLNG receipt was $7.67 million.”
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Oil & Energy
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.
