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Flared Gas: FG Targets Six Million LPG Users

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Oil price Nigeria
  • Flared Gas: FG Targets Six Million LPG Users

The Federal Government has commenced moves that will ensure the utilisation of flared gas by converting and supplying the commodity as Liquefied Petroleum Gas, popularly known as cooking gas, to six million households across the country.

It was also gathered that the government had laid out a framework through which it would issue licences to private investors, allowing them to productively utilise the volumes of gas that would have been flared.

In their different presentations at the recent 2018 Oloibiri Lecture Series and Energy Forum, which were obtained by our correspondent in Abuja, the Group Managing Director of the Nigerian National Petroleum Corporation, Maikanti Baru, and the Senior Technical Adviser to the Minister of State for Petroleum Resources on Refineries and Downstream Infrastructure, Rabiu Suleiman, stated that the government was working to further reduce gas flaring in Nigeria.

Suleiman specifically stated that the Federal Government inaugurated the Gas Flare Commercialisation Programme in December 2016, which was a high priority strategy for achieving the national mandate for gas flare-out by 2020.

The programme, he said, laid out a framework for the government to licence gas that would otherwise have been flared to technically credible and financially-sound third party private sector players.

On the expected deliverables of the commercialisation programme, Suleiman stated that the potential impact on Nigeria’s environment from flared gas utilisation was to give six million households access to clean energy through the usage of the LPG.

This, according to him, will see to the elimination of 20 million tonnes of Carbon IV Oxide emissions, adding that 600,000 metric tonnes of LPG per year will be unlocked.

He added that the potential impact in the power sector from flared gas utilisation would result in the generation of additional 2.5 gigawatts, as about $3bn capital investments would be injected to fund all the projects, with the capacity of creating 300,000 jobs.

Also speaking on measures aimed at taking out gas flaring, Baru stated that in the last few years, the NNPC started laying the foundation for a sustainable energy future.

He said, “We know the effect the United States shale oil boom has on our exports to North America and even its attendant effect on the world supply and oil prices. We know the effect of collapsed oil prices on a monolithic economy as ours. We know that change is bound to come.

“Our strategy is quite simple and it includes the diversification from oil using our enormous gas resources for in-country industrialisation via gas-to-power, gas-to-urea, methanol, and fertilisers. This has the potential to accelerate growth of our economy and mitigate the impact of future oil price drop.”

Baru said the oil firm had embarked on one of the most aggressive gas reforms as it had accelerated the implementation of gas pipeline infrastructure development, with specific focus on critical pipeline infrastructure to power plants being put in place.

He stated that between in the last eight years, almost 500km of pipelines had been completed, inaugurated and now delivering gas.

The NNPC boss said, “Some of the completed pipelines are the Oben-Geregu (196km), Escravos-Warri-Oben (110km), Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km), Ukanafun- Calabar (128km). With these, all available power plants in the country today are connected to permanent gas supply pipelines.

“In addition, there is ongoing construction of the very strategic East-West OB3 pipeline (127km) scheduled for completion by Q3 2018, the expansion of the Escravos-Lagos Gas Pipeline System scheduled for completion by Q1 2018.

“Most recently, the Federal Executive Council approved the contract award of the 40-inch by 614km Ajaokuta-Kaduna- Kano pipeline and associated facilities. This pipeline is expected to supply natural gas to power plants and industries in the northern part of the country.”

Baru observed that once the pipeline was completed, the nationwide backbone gas infrastructure would be in place.

He stated that with the growth in infrastructure, gas which was hitherto inaccessible and flared would be fully utilised.

“Nigeria has seen the most aggressive drop in gas flaring from a peak of 2,500mmcf/d a few years ago to about 700mmcf/d currently and reducing; and in the next few years, we would have stopped routine flaring, meaning zero flare from all the gas producers,” Baru said.

He, however, noted that the pace of domestic gas demand was significantly higher than the country’s gas supply development growth due to a projected shortfall of about 3.4 billion cubic feet per day by 2020, as demand increases to 7bscfd.

This, he said, made the NNPC to identify short, medium and long-term gas resources to bridge the huge supply gap.

Baru said, “We have identified seven critical gas development projects to deliver about 3.4bscfd to bridge the foreseen medium-term supply gap by 2020, which will be aggressively implemented on an accelerated basis.

“These projects, when fully implemented, will enable the nation to meet its aspiration of delivering gas to support 15,000MW power generation and position Nigeria as a regional hub for gas-based industries.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

IMF to Review Nigeria’s Growth Forecast Amid Destruction of Businesses, Properties

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IMF Says it May Review Nigeria’s Growth  Amid Recent Development in the Country

Following the destruction of businesses and properties that trailed the #EndSARS protest, the International Monetary Fund (IMF) has said it may review the nation’s growth forecast in view of the new development in the country.

Abebe Selassie, the Director, African Department, International Monetary Fund, made the statement while responding to questions during a virtual IMF press conference on the economic outlook of Sub-Saharan Africa on Thursday.

According to him, the protest is difficult given that Lagos is a very important economic hub and contributes to the overall Nigeria activities.

Selassie said, “On the growth projections in Nigeria, I mean, these protests happened of course, after we had closed, after the period where the data we looked at in making the growth projections for this economic outlook.

“And much will depend really on how these protests evolve.

“Lagos of course, is a very important economic hub and contributes quite a bit of economic activity to overall Nigeria activities.

“So, if these persist and are showing significant effects on economic data, we will internalise them in due course.”

He further explained that the nation’s economy had been a difficult one in the last four years ever since oil prices plunged in 2015-16.

He said, “I think this is exactly why we have been on the record in Nigeria about how really critical it is to get all of the policy induced barriers out of the way to facilitate stronger economic growth.

“For the government to do more to raise revenues through the area of non-oil resources to be able to invest in health education which would, you know, allow people to be more successful at getting jobs but also improve the economy’s potential.

“So, I think that development agenda that Nigeria has, I think, has to be tackled with gusto and vigor so that the millions of jobs that the country needs can be created.”

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Oil Marketers Lose Millions as Hoodlums Set Petrol Tankers on Fire

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Oil Tankers Burnt by Hoodlums as Marketers Lose Millions to Protest

Oil marketers lost millions of Naira to repeated attacks by hoodlums exploiting the #EndSARS protest.

The Independent Petroleum Marketers Association of Nigeria on Thursday said hoodlums have been attacking their trucks since they hijacked the protest earlier in the week.

The association said three petrol laden trucks were burnt again on Thursday in Warri, Delta State.

This came as the Board of Trustees of the Oil and Solid Mineral Producing Area Landlords Association of Nigerian urged protesters across the country to sheathe their swords as the destruction of oil assets and others had become alarming.

Chief Chinedu Ukadike, the Public Relations Officer, IPMAN, who spoke in Abuja said three petrol tankers with petroleum products estimated at about N90 million were set on fire on Thursday.

He said, “The protesters are burning our petrol trucks as we speak right now in Warri. They are burning three trucks. The cost or value of the content in those trucks is about N90m.

“That is outside the worth of the trucks that are being burnt. This is why we asked our tanker drivers to park or temporarily halt the movement of products.”

Ukadike said the association decided to halt the movement of petroleum products on Wednesday to avert a further disaster that could arise attack of oil tankers by angry protesters.

That advise on the temporary halt of tankers movement was vital, particularly for volatile locations where protesters are highly aggressive. So that is what is happening now in Warri, the petrol trucks of oil marketers are being burnt,” he stated on Thursday.

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Economy

LCCI Says FG Loses N700bn to #EndSARS Protest in 12 Days

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Nigeria Loses Over N700 Billion to #EndSARS Protest in 12 Days

The Federal Government lost over N700 billion to the #EndSARS protest in twelve days, according to the Lagos Chamber of Commerce and Industry (LCCI).

Mrs. Toki Mabogunje, the President, LCCI, disclosed this while reviewing the economic implications of the just ended #EndSARS protest.

Mabogunje, who appreciated the value of citizens engagement and the demand for accountability which the protest represents, lamented the negative effect on the nation’s economy.

She said, “These are in consonance with democratic norms. They also form vital ingredients for good governance.

“LCCI is however concerned about the negative impact that the protracted nature of the EndSars protests has on business activities across the country.

“Over the past twelve days, economic activities have been crippled in most parts of the country and has been particularly profound in the urban areas.

“The Nigerian economy has suffered an estimated seven hundred billion naira (N700 billion) loss in the past twelve days.”

She further said the protest has reawakened the need to reform the shortcomings in the nation’s political governance, however added that to protect livelihoods of Nigerians, including business community, the protesters need to move to next stage of civic engagement.

This is necessary to reduce the massive disruptions, blockades and barricades around our major cities and interstate highways. These actions have been at great cost to the economy and the welfare of Nigerian citizens. It should be noted that our economy is still reeling from the shocks of the Covid 19 Pandemic and struggling to recover from its devastating effects,” she added.

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