Oil & Energy
PPMC Raises Concern Over Incessant Pipeline Vandalism
T
he Pipeline and Products
Marketing Company (PPMC) last Thursday raised concern over the incessant pipeline vandalism across the country.
The PPMC spokesman, Mr Nasir Imodagbe, raised the concern in an interview with newsmen in Abuja.
He said that activities of oil thieves, who incessantly destroyed pipelines with the aim of stealing products, were having damaging effects on the economy.
Imodagbe said the increasing incidence of pipeline vandalism, especially in the Mosimi – Ijegun – Atlas Cove line, was worrisome.
“In this month alone, we have located and fixed 73 ruptured points on that Mosimi – Ijegun – Atlas Cove line,” he said.
The spokesperson, who said that the entire stretch of that pipeline was replaced in 2010, ruled out the possibility that the rupture could have been as a result of the old age of the pipelines.
While describing the recent oil spill from pipeline at the Ijegun area in Lagos as unfortunate, he attributed the incident to pipeline sabotage by people suspected to be oil thieves.
He said though the PPMC engineers had since been mobilised to the area to fix the ruptured points, such money used for repairs would have been channeled to other meaningful projects.
He said once a pipeline was vandalised, the entire operations would be suspended.
Imodagbe said this would not only affect supply, but would make the country to incur more debts in paying demurrage on vessels laden with oil that could not discharge as at when due.
“When incidents like this occur, they have multiplier effects on the economy.
“They do not just lead to disruption in the petroleum products supply system, but cause hardship for the ordinary hardworking citizens.
“They have long-lasting devastating effects not only on the environment, but also human beings which could affect future generations,” he said.
Imodagbe appealed to Nigerians to see pipelines as national assets to be protected, noting that losses incurred through vandalism were always colossal.
He said that there was the need to support the government in its fight against oil theft and pipelines vandalism.
Imodagbe called on members of the public to be vigilant and report any suspicious movement around pipelines to the law enforcement agencies.
He said the vandals were not spirits, but human beings who lived among the people and whose activities should not be condoned.
The Federal Government has offered explanation with regard to recent changes to fuel sulphur content standards for diesel.
The Government said the change was part of a regional harmonisation effort, not a relaxation of regulations for local refineries.
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, told newsmen that the move was only adhering to a 2020 decision by the Economic Community of West African States (ECOWAS) which mandated a gradual shift to cleaner fuels across the region.
Ahmed said the new limits comply with the decision by ECOWAS that mandated stricter fuel specifications, with enforcement starting in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.
“We are merely implementing the ECOWAS decision adopted in 2020. So, a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.
He said importers were notified of the progressive reduction in allowable sulphur content, reaching 200 ppm this month from 300 ppm in February, well before the giant Dangote refinery began supplying diesel.
Recall that an S&P Global report, last week, noted a significant shift in the West African fuel market after Nigeria altered its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm, sparking concerns it might be lowering its standards to accommodate domestically produced diesel which exceeds the 200 ppm cap.
High sulphur content in fuels can damage engines and contribute to air pollution. Nevertheless, the ECOWAS rule currently allows locally produced fuel to have a higher sulphur content until January 2025.
At that point, a uniform standard of below 5 ppm will apply to both domestic refining and imports from outside West Africa.
Importers were previously permitted to bring in diesel with a sulphur content between 1,500 ppm and 3,000 ppm.
It would be noted that the shift to cleaner fuels aligns with global environmental efforts and ensures a level playing field for regional refiners.
The Port Harcourt Electricity Distribution (PHED) plc says it has commenced implementation of the April 2024 Supplementary Order to the MYTO in its franchise area while assuring customers of improved service delivery.
The Supplementary order, which took effect on April 3, 2024, emphasizes provisions of the MYTO applicable to customers on the Band A segment taking into consideration other favorable obligations by the service provider to Band A customers.
The Head, Corporate Communications of the company, Olubukola Ilvebare, revealed that under the new tariff regime, customers on Band A Feeders who typically receive a minimum supply of power for 20hours per day, would now be obliged to pay N225/kwh.
“According to the Order, this new tariff is modeled to cushion the effects of recent shifts in key economic indices such as inflation rates, foreign exchange rates, gas prices, as well as enable improved delivery of other responsibilities across the value chain which impact operational efficiencies and ability to reliably supply power to esteemed customers.
“PHED assures Band A customers of full compliance with the objectives of the new tariff order”, he stated.
Ilvebare also said the management team was committed to delivering of optimal and quality services in this cost reflective dispensation.
The PHED further informed its esteemed customers on the other service Bands of B, C D & E, that their tariff remains unchanged, adding that the recently implemented supplementary order was only APPLICABLE to customers on Band A Feeders.
The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement would see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, would produce PMS, AGO, ATK, LPG for both the local and international markets.
It stated, “NNPC Limited’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.
By: Lady Godknows Ogbulu
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