Oil
Fuel supply: PENGASSAN urges FG to reposition PPMC, end downstream sector inefficiency
…Bemoans PPMC ageing facilities
By Kunle Kalejaye
LAGOS-IF the Federal Government intends to put an end to the inefficiency in the daily distribution and supply of petroleum products it must consider a strategic repositioning of the Pipelines and Products Marketing Company, PPMC, the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN has said.
President Jonathan
The trade union said that PPMC is not only crucial to the distribution of refined petroleum products but also efficient and effective to the performance of the country’s major refineries as it supplies crude oil to to them
Aside crude supply to the refineries, PENGASSAN explained that PPMC has depots in Port Harcourt, Enugu, Calabar, Aba, Gombe, Yola Ibadan, Ilorin, Makurdi and other major states’ capitals throughout the federation.
PENGASSAN therefore reiterates that unless government resolve some of the challenges confronting the operations of the PPMC, it may be difficult for petroleum products to be available in all parts of the country and at relatively the same prices.
Some of the challenges affecting the effective and efficient operations of the PPMC listed by PENGASSAN include insecurity of pipelines and staff of the company, inadequate funding, ageing equipment, supply of substandard operational equipment, shortage of manpower and irregular capacity building for existing staff of the company and lack of reliable fire trucks and good safety standards.
PENGASSAN in statement obtained by Biztellers noted that the greatest challenge confronting the PPMC is vandalism of pipelines by criminals and economic saboteurs.
Explaining the implications of the challenge, PENGASSAN said, “The negative impacts of the pipeline vandalism on the nation’s economy and the oil and gas industry are enormous. Such include non-functionality of existing refineries, increased operational cost, job losses, reduction in investments in the downstream sub sector and inability to attract new investment, and inadequate supply/availability of refined petroleum products in other parts of the country.
“The efficiency and functionality of the nation’s refineries are continuously frustrated by inadequate crude oil supply which is as a result of vandalism of pipelines that supply crude to the refineries. The refineries are continuously starved of crude oil supply with possibility of forcing a shut down.
“The inadequate availability and scarcity of refined products across the country can also be attributed to pipeline vandalism, as distributions of petroleum products which are supposed to run through pipes to various parts of the country are vandalised.
“Both the crude and refined products are piped through the pipeline manage by the PPMC. If the pipelines are effectively policed and secured, there will be regular supply of crude to the refineries and those imported and stored in tank farms to be piped to depots across the country for effective distribution to engender adequate availability of the products.”
The trade union also noted that many of its members were attacked and killed by the vandals in line of duties to fix and repair pipelines broken and damaged by the vandals.
While demanding that the government should evolve the political will to deal with pipeline vandalism by using modern technology to secure the pipelines, PENGASSAN called for overhauling of the security agencies that are in charge of providing security for the pipelines, as it accused some of the officers of connivance with the vandals.
PENGASSAN bemoaned the inadequate funding of PPMC, adding that most of the company’s equipment are ageing and are in bad shape.
“The equipment are ageing as some of them that have lifespan of 15 years are over 35 years old and are not well maintained. Even when maintenances were to be carried out, we discovered that contractors usually supplied substandard materials for the repair and maintenance.
“Some of the ageing equipment are fire trucks, which some of them are as old as 40 to 45 years. There is need for the government to purchase new fire trucks to combat any fire incident on the pipelines.”
The Nigerian National Petroleum Company Limited (NNPC) has unveiled a bold strategy to reduce methane emissions in the oil and gas sector by 60% by 2031, with an ultimate goal of achieving net-zero emissions by 2060.
This announcement reinforces Nigeria’s leadership role under the Global Methane Pledge initiative and its commitment to tackling climate change.
The Group Chief Executive Officer of NNPC, Mele Kyari, disclosed these plans during a meeting on Thursday with Robert Leahman, the U.S. State Department’s Global Methane Program Manager, and a delegation from Deloitte.
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The discussions, held at the NNPC Towers in Abuja, focused on collaborative efforts to reduce methane emissions through innovative and sustainable practices.
“Reducing methane emissions is not just an environmental necessity but also a strategic imperative for Nigeria’s energy transition. We are leveraging partnerships to adopt global best practices and innovative solutions,” Kyari stated.
Key among these efforts is a pilot project in the Niger Delta, aimed at establishing emissions baselines, mitigating methane leaks, and promoting sustainable operations across Nigeria’s energy sector.
The project, a partnership between NNPC, Deloitte, and the U.S. Bureau of Energy Resources, will utilize data-driven methodologies to pinpoint and address methane hotspots.
Robert Leahman commended Nigeria’s proactive stance, describing it as a benchmark for other nations on the continent.
“Nigeria’s leadership under the Global Methane Pledge sets a standard for the continent. These initiatives will not only help reduce emissions but also drive sustainable development in the energy sector,” he said.
Kyari highlighted the broader benefits of addressing methane emissions, noting its significance for both environmental protection and economic efficiency.
“This collaboration is a game-changer. By addressing methane leaks, we’re reducing waste, saving costs, and protecting the environment. It’s a win-win for our economy and the planet,” he added.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
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