Energy
FG Signs MOU With Chinese Firm On Coal Energy
ABUJA – The Nigerian Federal Government, yesterday, signed a Memorandum of Understanding, MoU with a Chinese energy firm, HTG/Pacific Energy Co. Ltd, for a $3.7 billion coal to power project.
The signing of the MoU took place at the Banquette Hall of the Presidential Villa, FCT Abuja at the end of a one day workshop on Solid Minerals sector at the villa.
After signing the MoU, the Chairman of Pacific Energy, Co. ltd, Adedeji Adeleke, said the MoU represents the first step to building plants that will generate additional 1200 mega watts of electricity to the national grid.
He also disclosed that a greater part of the funds required to carry out the project will be sourced from foreign banks.
“For this particular project, almost all the fund are going to be borrowed from outside the country. The local banks have the capacity to fund, but there are certain things they need to see in place to make sure that their money will come back” he said.
He said with the signing of the MoU, the nation can expect additional power generated into the grid within the next 48 months.
“This MoU is the first step towards our proposed 1200 mega watts power plant to be built in Enugu state, using the coal we are going to mine from the Ezima coal mine. The MoU is actually for the allocation of the coal mine,” he said,
Mr. Adeleke further stated that with the signing of the MoU, the company can now move into the Ezima coal complex to commence exploitation of the abundant coal deposit within the area.
” There is estimated reserve and confirmed reserve, but we are going to do our own work to confirm the actual reserve to make sure that we have enough to power the 1200 mega watts within the next say 50 years.
“This MoU now allows us to move in to start the exploration immediately,” he said.
He declared that the investment will be in two parts, one part involving the development of the coal mine and the construction of the power plant.
“If everything goes well with the exploration, we are expecting to start generating power within the next 48 months.”
President Goodluck Jonathan earlier in his speech had pointed that Nigeria’s Coal reserve which is put at about 360 metric tonnes if properly utilized can generate 30 percent of the nation’s electricity needs.
Speaking on the likely challenges, ahead of the resumption of activities in the coal mine, Mr. Adeleke also said the company envisages peaceful operation in the area but does not totally rule out possible conflict with the community.
“We do not know the community issues we are going to face. You know, you heard some of the issues raised here earlier; we also have issues like the power purchase agreement as well as ensuring that it is a bankable power purchase agreement because most of the money is going to be borrowed.
“Okay, it is not that somebody has the money somewhere. So we need bankable PPA, we need cooperation from the communities and we are going to do our part as corporate entity to make sure that the communities are taken care of as well as have the technology to check pollution,” he said.
Energy
NCDMB Seeks Industry-wide Support for FDIs, NOGOF, Others, To Ramp Up Crude Output, Energy Security
As the 42nd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) got underway in Lagos on Monday, the Nigerian Content Development and Monitoring Board (NCDMB) has canvassed industry-wide support for initiatives that would reverse negative trends in Nigeria’s energy sector.
The Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, made the assertion in a paper entitled “Resolving the Nigerian Energy Trilemma: Energy Security, Sustained Growth, and Affordability”.
He identified “alarming scale of pipeline vandalism and theft of crude oil” as the biggest threats to Nigeria’s energy security, noting that major oil and gas projects are required as well as a robust security strategy based on mutually beneficial collaboration with host communities.
To achieve the above objectives, the Board has undertaken to work with stakeholders in the industry to dedicate one week in every calendar year to signing Final Investment Decisions (FIDs) on new projects, as prospective investors could be motivated to act expeditiously to meet agreed-upon deadlines and regulators are similarly encouraged.
Engr. Ogbe noted that FDIs would “catalyze new projects in the Nigerian oil and gas industry,” and that fruitful collaboration amongst stakeholders and NCDMB would actualize the intentions of the Presidential Directives rolled out in March 2024 by The Presidency, and thus “fast-track the contracting cycle and incentivize investments in our sector.”
The NCDMB boss, who was represented by the General Manager, Corporate Communications and Zonal Coordination, Esueme Dan Kikile, Esq., suggested that the FDI Week be incorporated into any of the major oil, gas and energy conferences held in the country.
According to him, the Board holds a similar biennial event called Nigerian Oil and Gas Opportunity Fair (NOGOF), which is attended by all the international and indigenous operating companies to share awareness of opportunities and projects to be executed.
On the Board’s strategy to create a safe and secure operating environment for oil and gas companies and thus eliminate the huge costs associated with vandalism and attacks on personnel and installations, the Executive Secretary disclosed that NCDMB has introduced a new policy known as “Back to the Creeks Initiative.”
According to him, “We are convinced at the Board that the incessant tampering with crude oil pipelines and hostilities in oil-producing communities have a huge impact on energy security,” and that the new initiative is geared towards curtailing incidences of disruptions of oil industry operations through targeted interventions. These include execution of corporate social responsibility projects in communities, provision of affordable finance to local contractors, upgrade of basic educational facilities in villages and communities, building the capacity of teachers and improving the infrastructure at that level.
The initiative, whose details would soon be publicized, is expected to create a stakeholder feeling in host communities and make them view industry assets around them as facilities that are bound up with their socio-economic well-being.
Such an orientation would translate into safety of assets, increased crude oil production, drastically reduced security costs and more favourable pricing of petroleum products, he added.
Energy
Shell Will Continue To Power Progress On Energy Security In Nigeria – Okunbor
Shell will continue to power progress in the drive for energy security in Nigeria through its businesses in the Upstream, Midstream and Downstream and Renewables sectors.
This view was shared by the Country Chair, Shell Companies in Nigeria and Managing Director, The Shell Petroleum Development Company of Nigeria Ltd (SPDC,) Osagie Okunbor in Lagos, on Tuesday.
It was contained in remarks delivered on his behalf by Exploration Manager Gogo Eneyok at the opening of the 42nd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).
Okunbor maintained that the range of the Shell businesses were integrated across the energy value chain and working hard to address the challenges as captured in the theme of the event: “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth & Affordability.”
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In addition to the SPDC, the other Shell businesses in Nigeria include, Shell Nigeria Exploration and Production Company Limited (SNEPCo,) Shell Nigeria Gas (SNG,) Daystar Power and All On as well as Nigeria Liquefied Natural Gas (NLNG,) in which Shell has 25.6% interests.
Okunbor stated, “Shell, working with government, regulators and stakeholders, is actively participating in finding a pathway through the energy trilemma. We are focused on generating maximum value and cash to power the country.”
Referring to efforts towards low and zero-carbon products to market, he said, “Shell is deploying latest technologies in reducing emission in our operations and we are well on track to meet our forecasted Green House Gas reduction targets.
”SNG is also increasing domestic gas delivery through its distribution network of 150 kilometers in Nigeria while Daystar and All On are giving individuals and communities access to cleaner and affordable energy.
Okunbor however, pointed out that for these and other efforts and investments to achieve the desired results, government had to improve the regulatory environment with continuous improvement in the provisions in the Petroleum Industry Act. “The menace of crude theft and illegal refining must also be tackled to safeguard the nation’s resources and protect the environment,” he added.
The opening ceremony of the NAPE conference featured a tour of exhibition stand by the executive members of NAPE. He and other dignitaries were conducted round the Shell stand by Magdalene Umoh, a Senior Production Systems Engineer.
She gave an insight to the milestones of Shell businesses in Nigeria including social investments and development of Nigerian contractors and vendors. The Shell stand is complemented by a well-staffed medical team which is attending to participants and visitors for the duration of the four-day conference.
Energy
NCDMB, Butane Energy, Boost LPG Supply With Commissioning Of Kaduna Plant
The Nigerian Content Development and Monitoring Board (NCDMB) and Butane Energy Limited have taken a significant step forward in their collective drive to make liquefied petroleum gas (LPG) a widely accessible, cleaner, and more cost-effective fuel option for cooking, with the commissioning of a 180-metric-tonne LPG Filling Plant in Kaduna, Kaduna State.
Commissioned on Friday, the Filling Plant, is the second after the 100MT LPG Storage and Bottling Plant in Kabukawa Layout, Katsina, Katsina State, in 2021, in keeping with a joint venture to establish five of such facilities in Northern Nigeria with a combined storage capacity of 1,000MT.
Biztellers reports that the Kano LPG Storage and Bottling Plant in Kano State is slated for commissioning in the first quarter of 2025, while construction work on another in Bauchi is at an advanced stage, with Abuja next in line.
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The Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director, Monitoring and Evaluation of NCDMB, Alhaji Abdulmalik Halilu, expressed satisfaction with the impressive strides of Butane Energy Ltd.
He pointed out that NCDMB was motivated to enter into equity partnership with the indigenous LPG storage, trading and marketing company after the latter presented “a [bankable] business plan aimed at enhancing gas penetration in northern Nigeria.”
He explained that the Board acted in line with its statutory mandate to catalyse in-country capacity development through equity funding.
NCDMD, he noted further, was also interested in job creation through such projects, as there were clear possibilities for employment into technical and managerial cadres as operations progressed.
According to him, no fewer than 200 Nigerians gained employment, and there was the added benefit of local content growth.
Equally significant to the NCDMB was the consideration that the project was in alignment with Federal Government’s expressed commitment to net-zero emissions by 2026, and the campaign for cleaner alternative to kerosene and firewood as cooking fuel.
In his own remarks, the Chairman, Butane Energy Ltd, Alhaji Isa Inuwa Muhammed, stated that NCDMB is a co-owner of the company, and expressed gratitude to the Management of the NCDMB for the confidence reposed in his company, particularly in its vision and business approach.
According to the Chairman, the relationship between the Board and Butane is based on trust, and that the success thus far would greatly reinforce the partnership.
Established in 2017 as a player in LPG storage and marketing, Butane Energy Ltd has massive distribution assets in northern Nigeria, and is deliberate in its corporate objective to make the fuel accessible to every part of the region.
The LPG Filling Plant is part of NCDMB’s strategic third-party investments aimed at supporting in-country capacity development, reducing reliance on traditional fuels, fostering sustainability and building a greener future for Nigeria.