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1143Mw Recovered as Escravos-Lagos Pipeline Resumes Gas Supply

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electricity
  • 1143Mw Recovered as Escravos-Lagos Pipeline Resumes Gas Supply

The Escravos-Lagos Pipeline (ELP). damaged by fire last week, has been fixed, resulting in gas supply to customers on the line, including power generating companies.

The resumption of gas supply, has also led to the recovery of 1143Megawatts lost to the incident.

The Nigerian National Petroleum Corporation (NNPC), which made this known yesterday in a statement, said the repair work followed the directive by the Group Managing Director, Dr. Maikanti Baru, to carry out an assessment of the damage with a view to getting a prompt solution.

The statement, issued by NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, said a section of the ELP at Abakila in Ondo State blew up in flames on January 2, 2018 as a result of bush fire, saying the accident affected gas supply to customers in Ondo, Ogun and Lagos states, with subsequent shutdown of a number of power plants.

He said with the restoration of the ELP and resumption of gas supply, the affected power plants with a combined generating capacity of 1143Mw, are now in a position to resume power generation soon.

Ughamadu listed the affected power plants to include: Egbin in Lagos State; Olorunshogo, PEL Olorunshogo and Paras Power plant in Ogun State; and Omotosho in Ondo State.

The 36-inch Escravos to Lagos Pipeline System (ELPS), is a natural gas pipeline built in 1989 to supply gas from Escravos in the Niger Delta, to various consumption utilisation areas, in the South-west and also feeds the West African Gas Pipeline System.

Meanwhile, the Minister of Power Works and Housing, Babatunde Fashola, said yesterday that the ministry plans to expand the distribution network of the electricity Distribution Companies (DisCos) to incorporate the 2,000Mw that has been stranded.

He said: “We are putting together a policy to help expand the distribution network of the DisCos and use this to distribute the 2000Mw currently available, but cannot be distributed.”

He called on manufacturers to make available information on their location and the amount of power they need from the undistributed 2,000Mw.

Fashola, who spoke at the 23rd Monthly Power Sector Operators meeting in Lafia, Nasarawa State, urged the sector to work harder this year to increase people’s access to meters and reduce the incidents of estimated billing, stressing that the Nigeria Electricity Regulatory Commission (NERC), would conclude the Meter Regulations that will open up the meters’ supply and installation business.

FasholaHe regretted that in the “first few days of the new year, we suffered a set back to our power supply which was caused by damage to the gas supply network around Okada.”

He said NNPC had last night informed the ministry on the completion of the repairs, saying what was left was to test the lines and restore pressure and supply gas to the generation companies.

Fashola said: “One-by-one, all the stakeholders from GenCos, TCN and DisCos will work to restore supply to the levels they were before the pipeline damage,” saying a few months ago, the Nigerian Electricity Regulatory Commission (NERC) formally presented the Mini Grid Regulations to the government.

He said last month in Abuja, Nigeria through the Rural Electrification Agency, hosted a Mini Grids Summit that is the largest ever attended in Africa with 600 participants from about 40 countries.

Fashola said the emphasis now is on “mini grids that will help us connect more people and boost incremental power.”

Giving account of the progress that has been made so far, he said generated power has gone up to 7000 Mw in 2017 from 3,000 Mw in May, 2015, adding that Transmission Capacity has peaked at 6900Mw in 2017 from about 5,000 Mw in May 2015.

He said “Distribution was now averaging 5,000 Mw in 2017, as against its 2650Mw in 2015.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Slide as U.S. Crude Stockpiles Surge, Heightening Demand Concerns

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Crude oil

Oil prices declined on Thursday as concerns over demand intensified due to a larger-than-anticipated build in U.S. crude stockpiles.

Brent crude oil, against which Nigerian oil is priced, dropped by 0.5% to $83.25 a barrel while U.S. West Texas Intermediate crude oil fell by 0.3% to $78.28 a barrel.

The Energy Information Administration’s report revealed a substantial increase in U.S. crude oil stockpiles by 4.2 million barrels to 447.2 million barrels for the week ending February 23rd.

This surge surpassed analysts’ expectations and marked the fifth consecutive week of rising inventories.

While gasoline and distillate inventories witnessed a decline, concerns regarding a sluggish economy and reduced oil demand in the U.S. were amplified.

Satoru Yoshida, a commodity analyst with Rakuten Securities, highlighted that the significant stockpiles have heightened investor worries.

Moreover, the anticipation of delayed U.S. interest rate cuts further weighed on market sentiment, potentially undermining oil demand.

Traders have adjusted their expectations for rate cuts, with an easing cycle predicted to commence in June rather than March as previously anticipated.

Market participants await the U.S. personal consumption expenditures price index for insights into inflation trends, while the possibility of an extension of voluntary oil output cuts from OPEC+ looms over price dynamics, amid lingering uncertainty in the demand outlook and geopolitical tensions in the Middle East.

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Crude Oil Shortage Threatens Dangote, Government Refineries, Minister Raises Alarm

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Dangote Refinery

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has sounded a clarion call over a looming crude oil shortage that threatens the operations of the newly inaugurated Dangote Petrochemical Refinery and government-owned refineries in Nigeria.

Addressing stakeholders at the seventh edition of the Nigeria International Energy Summit in Abuja, Minister Lokpobiri expressed concerns that unless deliberate efforts are made to increase investments and crude oil production, these refineries may struggle to obtain enough feedstock for petroleum product manufacturing.

The Dangote refinery, a colossal project spearheaded by Dangote Industries Limited, has a daily requirement of up to 650,000 barrels of crude oil, while government-owned refineries could need approximately 400,000 barrels.

However, the current pace of crude oil production and investment in Nigeria falls short of meeting these demands.

Minister Lokpobiri highlighted the need to ramp up production and attract investments in the upstream sector to ensure adequate feedstock supply for the refineries.

He emphasized the importance of efficiently utilizing Nigeria’s abundant oil and gas reserves to enhance domestic energy security and economic prosperity.

Furthermore, the minister underscored the significance of investing in energy infrastructure and transitioning towards more environmentally friendly practices to address Nigeria’s energy needs effectively.

The alarm raised by Minister Lokpobiri underscores the urgency for strategic interventions and collaborative efforts to mitigate the impending crude oil shortage and secure the future of Nigeria’s refining industry amidst evolving global energy dynamics.

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Energy

NNPCL Pledges End to Nigeria’s Energy Scarcity Within a Decade

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Mele Kyari - Investors King

The Nigerian National Petroleum Company Limited (NNPCL) has announced a bold initiative aimed at ending Nigeria’s persistent energy scarcity within the next decade.

Mele Kyari, the Group Chief Executive Officer of NNPCL, revealed this ambitious plan during the opening ceremony of the seventh Nigerian International Energy Summit in Abuja.

Kyari’s announcement comes as a beacon of hope for millions of Nigerians grappling with chronic power shortages and energy deficiencies.

In his statement, Kyari expressed confidence that all issues related to energy scarcity in the country would be resolved within the next 10 years.

Assuring stakeholders of NNPCL’s unwavering commitment, Kyari emphasized the company’s dedication to collaborating with partners to bridge the energy deficit gap and foster prosperity for all Nigerians.

He highlighted NNPCL’s pivotal role as a key partner to oil-producing companies in Nigeria, facilitating the divestment of international oil companies from onshore and shallow water assets in the country.

Furthermore, Kyari underscored NNPCL’s statutory mandate as the enabler of national energy security, emphasizing the importance of sustainable production from divested assets to ensure energy security for Nigerians.

In addition to addressing domestic energy challenges, NNPCL is also exploring avenues for sustainable energy investment across Africa.

Kyari revealed the company’s intention to invest in the proposed African Energy Bank, aiming to secure funding for energy projects on the continent and guarantee regional energy security.

The event, attended by prominent stakeholders including government officials and representatives from international organizations, marks a significant step towards reshaping Nigeria’s energy landscape and fostering economic development through improved energy access.

As NNPCL charts its course towards energy abundance, Nigerians remain cautiously optimistic about the prospects of a brighter energy future.

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