- Firm Introduces Alternative Fuel for Car, Generator
Banner Gas, a brand of Banner energy has introduced to the Nigerian market a Liquified Petroleum Gas (LPG), to serve as a substitute and cheaper fuel for powering cars and generators.
This initiative followed the costly impact of the high cost of Petroleum Motor Spirit (PMS) on cars and generators, especially for manufacturing industries and businesses.
According to the Chief Executive Officer of Banner Gas, Mr. Nuhu Yakubu, the new product, which can be installed on generator and car at a pocket friendly bill, represents a model for solving the problem of shortage of cleaner and efficient energy, especially with the high cost of PMS, its health implication and the regular scarcity experienced in the country.
While hosting dealers at a franchise conference in Lagos, Yakubu added that the policy direction of the present administration which encouraged alternative fuel use, had made it imperative for Nigerians to take advantage of the innovation, which he said was locally produced, hence did not put pressure on the dollars, as against the conventional PMS.
Shedding more light on the benefits of the product, the CEO noted that “by switching to the latest, there will be no need to service your car more than once in a year, as against the routine monthly servicing that comes with the conventional fuel.
“The scheme, with attendant benefits for employment generation, technical skills acquisition and wealth creation, is one of the gains of the present administration’s policy on partial deregulation of the petroleum downstream sector.Considering the abundance of LPG supply in Nigeria, with its benefit as being clean and affordable replacement fuel for petrol (PMS), kerosene, diesel, LPFO, HPFO, fire wood, coal, sawdust and other unclean and environmentally unfriendly fuels, the launch sounds a welcome relief in response to the positive direction for energy policy of the federal government.”
The company which also announced the Franchise Retailership Scheme of the product, said its had arranged up to 100 delivery vans for door-to-door LPG delivery operations across the country.
This development, according to Banner Energy Head of Operations, Mr. Ade Makinde, will make for easier access to the product by the members of the public.
“The door-to-door LPG (cooking gas) delivery scheme aims at creating maximum connectivity to end users , including homes, hotels, eateries, schools, laboratories, factories, etc, along with related connection accessories, around its filling plants localities across the country.
“The scheme’s maximum penetration strategies aim to deepen demand for the product by end users, and expand operating space for more skilled workforce participation, employment generation and wealth creation in Nigeria’s LPG industry,”Makinde stated.
Oil Prices Hit Multi-year Highs on Monday
Oil prices hit multi-year highs on Monday buoyed by recovering demand and high natural gas and coal prices encouraging users to switch to fuel oil and diesel for power generation.
Brent crude oil futures were up 59 cents, or 0.7%, to $85.45 a barrel by 0900 GMT, after hitting $86.04, their highest level since October 2018.
U.S. West Texas Intermediate (WTI) crude futures climbed 90 cents, or 1.1%, to $83.18 a barrel, after hitting a $83.73, their highest since October 2014.
Both contracts rose by at least 3% last week.
“Easing restrictions around the world are likely to help the recovery in fuel consumption,” analysts at ANZ bank said in a note, adding that gas-to-oil switching for power generation alone could boost demand by as much as 450,000 barrels per day in the fourth quarter.
Cold temperatures in the northern hemisphere are also expected to worsen an oil supply deficit, said Edward Moya, senior analyst at OANDA.
“The oil market deficit seems poised to get worse as the energy crunch will intensify as the weather in the north has already started to get colder,” he said.
“As coal, electricity, and natural gas shortages lead to additional demand for crude, it appears that won’t be accompanied by significantly extra barrels from OPEC+ or the U.S.,” he said.
Prime Minister Fumio Kishida said on Monday that Japan would urge oil producers to increase output and take steps to cushion the impact of surging energy costs on industry.
Chinese data showed third-quarter economic growth fell to its lowest level in a year hurt by power shortages, supply bottlenecks and sporadic COVID-19 outbreaks.
China’s daily crude processing rate in September also fell its lowest level since May 2020 as a feedstock shortage and environmental inspections crippled operations at refineries, while independent refiners faced tightening crude import quotas.
Oil and Gas Companies in Nigeria
Nigeria is an oil reach nation with several oil and gas companies operating in Africa’s largest economy. However, only ten oil and gas companies are listed on the Nigerian Exchange Limited (NGX).
Before we discuss in detail each of the listed oil and gas companies in Nigeria. A short background on Africa’s largest economy will help throw more light on the significance of the oil and gas companies or the entire oil sector to the Nigerian economy.
Nigeria is a petrol-dollar economy, which means Africa’s most populous nation, sells crude oil and use its proceed to service the economy. In fact, the Nigerian Naira is backed by crude oil like Canadian Dollar and other commodity-dependent economies.
But because the Central Bank of Nigeria (CBN) pegged the Naira against its global counterparts, the local currency does not reflect succinctly the fluctuation in global oil prices like other crude oil-dependent currencies.
Since global oil prices rebounded with the gradual reopening of economies, the oil and gas companies in Nigeria have also rebounded from the 2020 record low of $15 per barrel. The oil and gas sector has gained 62.76 percent from the year to date, according to the NGX Oil and Gas Index.
The index gauge price movements in 10 listed oil and gas companies in Nigeria. However, there are several oil and gas companies in Nigeria not listed on the Nigerian Exchange Limited.
Oil and Gas Companies Listed on the Nigerian Exchange Limited (NGX)
|Company||Ticker||Sector||Date Listed||Date Incorporated|
|ARDOVA PLC [CG+]||ARDOVA||OIL AND GAS||–||November 12, 1964|
|CAPITAL OIL PLC [MRF]||CAPOIL||OIL AND GAS||–||August 29, 1985|
|CONOIL PLC||CONOIL||OIL AND GAS||–||June 30, 1970|
|ETERNA PLC.||ETERNA||OIL AND GAS||–||January 13, 1989|
|JAPAUL GOLD & VENTURES PLC||JAPAULGOLD||OIL AND GAS||August 10, 2005||June 29, 1994|
|MRS OIL NIGERIA PLC.||MRS||OIL AND GAS||–||August 12, 1969|
|OANDO PLC [MRF]||OANDO||OIL AND GAS||February 24, 1992||August 25, 1969|
|RAK UNITY PET. COMP. PLC. [MRF]||RAKUNITY||OIL AND GAS||–||December 20, 1982|
|SEPLAT ENERGY PLC [CG+]||SEPLAT||OIL AND GAS||–||June 17, 2009|
|TOTALENERGIES MARKETING NIGERIA PLC||TOTAL||OIL AND GAS||–||January 6, 1956|
Oil Prices Extend Gains on Friday After Saudis Dismiss Supply Concerns
Oil prices extended gains on Friday after Prince Abdulaziz bin Salman, Saudi Energy Minister dismissed calls for more crude oil supply on Thursday.
Brent crude oil, against which Nigerian oil is priced, rose to $84.92 per barrel at around 8:31 am Nigerian time. The U.S West Texas Intermediate crude oil also responded positively to the comment, rising to $81.56 per barrel on Friday.
“What we see in the oil market today is an incremental (price) increase of 29%, vis-à-vis 500% increases in (natural) gas prices, 300% increases in coal prices, 200% increases in NGLs (natural gas liquids) ….”
He further stated that the Organization of the Petroleum Exporting Countries and allies led by Russia, have done a “remarkable” job acting as “so-called regulator of the oil market,” he said.
“Gas markets, coal markets, other sources of energy need a regulator. This situation is telling us that people need to copy and paste what OPEC+ has done and what it has achieved.”
Prince Abdulaziz explained that OPEC plus will add 400,000 barrels per day in November and do the same in December and subsequent months. The increase will be gradual he said.
“We want to make sure that we reduce those excess capacities that we have developed as a result of COVID,” he said, adding that OPEC+ wanted to do it “in a gradual, phased-in approach”.
How FirstBank Employees Are Making A Difference in Their Immediate Environments Through The SPARK Initiative
African Development Bank Group President Akinwumi Adesina Assures Nigeria of Bank’s Strong Support to Achieve Food Security
Fintech TagPay Rebrands to Skaleet
Social Media2 weeks ago
Facebook Downtime Plunges Zuckerberg’s Wealth by $7B in Few Hours
Economy4 weeks ago
FG Plans To Deliver 15 Projects Across The Country With $4B Foreign Loans
Government4 weeks ago
Envoy Considers Establishment Of Chinese Banks In Nigeria To Boost Economy
Crude Oil2 weeks ago
Crude Oil Trading Near 3-year High Following OPEC+ Agreed to Gradual Increase
eNaira3 weeks ago
Official eNaira Website Goes Live
Economy3 weeks ago
British Petrol Stations Run Dry as Truck Driver Shortage Disrupts Supply Chain
Energy2 weeks ago
Ikeja Electric Notifies Lagos Customers On 8-Week Power Outage
Government4 weeks ago
Lagos Prohibits Open Cattle Grazing, Sanwo-Olu Signs Bill Into Law