Oil & Energy
Bizman Tasks FG On Investment -Friendly Policies
The Federal Government has been advised to create policies that would encourage private investment in the nation’s oil and gas industry.
The Managing Director of Masters Energy Limited, Mr Uche Uduah gave the advice when members of House of Representatives Committee on Petroleum Resources (Downstream) paid a visit to the yard in Port Harcourt’ Rivers State recently.
Citing the Amakpe Refinery in Akwa Ibom State as an instance, Uduah said somebody started that project and nobody could encourage him adding “what if he had spent all his life savings on that project, the whole thing would have gone down the drain?
He disclosed that Masters Energy was ready to build refinery as it has over 143 hectares of land for that purpose but there should be a policy in place that would support private investment. Mr Uduah said that privately owned refineries are the solution to the problem of fuel scarcity in the country he said.
“There should be 100 percent deregulation to allow for a level playing ground for all operators, even if it is a guided deregulation. I do not want government’s subsidy in any kind. If you buy you sell; if I buy l sell”.
Commenting on the firm’s challenges, the MD said “before now, it was adequate allocation and now is funding adding that nobody wants to give you money. According to him the banks are also afraid because of the Central Bank’s policies, so nobody wants to invest.
He explained that Premium Motor Spirit (PMS) constitutes 80 per cent of their business and added that if there was PMS over 500 trucks would be queuing up to load the product saying that despite the bad road trucks will come as it was closer to the north.
“The issue is that everybody is seared even the foreign investors. Nobody is sure that if they give you money that they would be able to get back their investment or if they give you products, they will get their money”, he stressed.
On insinuations of the existence of cartel in the industry, he said,” there is nothing like cartel, the business is about turnovers. Any marketer that has products must sell because the more turnovers you make the more money. What has been happening is NNPC’s supply and swap. Let them give you the analysis of what is the actual value since the beginning of the year”.
He also disclosed that the firm was building a $10 million fabrication yard in Port Harcourt which will be ready in January 2013.
The MD said, “Masters Energy is always thinking ahead. We do not wait for government policies. We have already started a fabrication unit which will be ready by January 2013. We want to see how we can play successfully with logistics and fabrication”.
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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.
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