Oil & Energy
Energy Security: NNPC Wants African Cooperation For Facilitation – Robert Rapier
The Nigerian National Petroleum Company Limited (NNPCL) has stressed the urgent need for partnership among nations in Africa, especially, in knowledge sharing, to attain energy security and achieve transition to cleaner energy.
Group Chief Executive Officer (GCEO) of the company, Mele Kyari, stated this recently while addressing the 7th edition of the Sub Saharan Africa International Petroleum Exhibition and Conference(SAIPEC) in Lagos.
Kyari said the Conference, with the theme, “Harnessing a Sustainable African Energy Industry through Partnerships”, is coming at an opportune time when the Nigerian Oil and Gas industry is experiencing a significant transformation following the passage of the Petroleum Industry Act (PIA 2021).
He explained that the Act has provided role clarity in Governance, Rule- based Administration, Attractive and Flexible Fiscal Terms and Direct benefits for the Host communities.
All these, he said. are targeted at creating enablers for investor confidence in the Nigerian Oil and Gas sector, where ample opportunities exist.
He however, noted that the restructuring is happening at a time when the Energy transition discussion is gaining momentum, and major fund providers for petroleum upstream investment are now activists and anti-fossil fuel.
“As I have always canvassed, decreasing investments in hydrocarbon ventures cannot guarantee global energy security in the near future. Rather, an inclusive policy that guarantees access to finance and low-carbon technologies are key to sustaining global energy security and equitable growth”, he stressed.
He said, Nigeria, being geographically situated in the sub-African region and also a foremost leader in the oil and gas industry in sub-Saharan Africa, there is the need to capitalise on the advancements made in the industry to meet the country’s energy demands, guarantee energy supply, expand economies and overall build a sustainable future for millions of people beyond our shores.
In the next 20 years, energy demand in Africa is expected to increase in the order of 30-35 per cent to support the projected increase in population and industrialization which presents an enormous opportunity for us to form partnerships across the continent and build a sustainable future, he 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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