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FG Moves To Cushion Effects Of Subsidy Removal, Commissions 5.2 mmscfd CNG Plant In Lagos

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. . . NNPC Plans To Roll Out Six More CNG Stations Nationwide

In its continued efforts to provide alternative source of fuel for Nigerians and lessen the impact of subsidy removal on petrol, the Federal Government has commissioned a 5.2 million standard cubic feet per day (mmscfd) Compressed Natural Gas (CNG) plant in Lagos.

Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, who commissioned the plant at the Isolo Industrial Area, Ilasamaja in Lagos, on Thursday, said the occasion, under the theme “From Gas to Prosperity: CNG for All”, represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.

The Minister described 2024 as a historic year for Nigerians, stressing that through his courageous decision to eliminate fuel subsidies and promote the acceptability and broader use of LPG, President Bola Tinubu has brought about several fresh beginnings in the lives of Nigerians.

“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” the Minister stated.

Ekpo noted that the use of CNG as a transport fuel is a mature technology used globally as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions. While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10% less CO2 than comparable gasoline powered passenger vehicles, the Minister added.

Earlier in his remarks, the GCEO NNPC Limited, Mallam Mele Kyari said to maintain energy security and provide more access to CNG by the Nigerian populace, NNPC has reached a Final Investment Decision (FID) with Axxela Limited to deliver Six CNG mother and service stations plants and stations of 5.2mmscfd capacity each, in selected locations spread across the six geopolitical zones including the FCT to ease access to bulk CNG.

He stated that the move was in addition to NNPC Retail’s phased deployment of CNG in over 100 stations across the country as well as other Joint Venture partnerships on CNG.

In particular, Kyari revealed that the commissioning of the NNPC CNG Station in Ilasamaja Lagos was part of NNPC’s efforts to grow domestic gas supply and utilization by deploying gas infrastructure nationwide.

He said the Petroleum Industry Act (PIA) explicitly mandated NNPC to promote domestic gas utilisation, thereby strengthening the company’s resolve to deploy critical gas infrastructure projects across the country.

“NNPC will continue to deliver more strategic projects for the benefit of our country. We shall utilise our gas resources for industrialisation, power generation and economic prosperity for all,” Kyari stated.

In his speech, the Lagos State Governor, Babajide Sanwo-Olu said the establishment of the CNG plant aligns perfectly with his vision for economic development, job creation and industrialisation in the State.

He said in demonstration of its resolve to champion CNG utilisation across Lagos State, the State Government has concluded plans to deploy 2,500 conversion kits and over 2,000 new CNG buses, which will commence operations before the end of the year.

The Ogun State Governor, Dapo Abiodun, represented by the State Commissioner of Environment, Mr. Ola Oresanya said the State is supporting capacity building in CNG conversion to ensure sustainability and promote economic development within the State and beyond.

In his goodwill message, the Chief Executive, Presidential CNG Initiative, Engineer Michael Oluwagbemi described the plant commissioning as a testament to President Tinubu’s commitment to providing sustainable energy solutions for Nigerians.

The CEO of Axxela, Bolaji Osunsanya thanked all the stakeholders especially the NNPC for its consistent vision towards the delivery of the plant, stressing that his company’s many years of preparation have now met a golden opportunity to deliver cleaner, cheaper energy to Nigerians.

The NNPC CNG Station Ilasamaja is a 5.2MMscf per day capacity station that can serve vehicles and also supply gas to industries and other companies. The Facility has dispensing points for filling cars, buses, trucks and tricycles, utilizing CNG and can fill about 3,700 cars or 600 trucks/buses every day thereby providing a constant supply of CNG.

The state-of- the art CNG plant was built through a partnership between NNPC Gas Marketing Limited (NGML) and Transit Gas Nigeria Limited (An Axxela Company).

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Energy

Shell Reiterates Commitment To Nigeria’s Dev’t, Wins FRCN Award

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The Shell Petroleum Development Company of Nigeria Limited (SPDC) has reaffirmed its unwavering commitment to supporting the socio-economic development of Nigeria, especially in its areas of operations in the Niger Delta.

Director/Head of Corporate Relations, SPDC, Igo Weli, made the statement in Port Harcourt last Friday at a dinner to celebrate the 21st anniversary of Treasure FM, a member of the Federal Radio Corporation of Nigeria (FRCN) network.

Weli said, “Our commitment stretches back to the 1950s, with a wide range of programmes supporting education, infrastructure, community electrification, and business empowerment.”

A key highlight of the anniversary dinner was the presentation of the FRCN Award for Consistent Media Partner to Shell companies in Nigeria.

Weli, who was represented by the Shell Spokesman, Michael Adande, said, “This award serves as a strong reminder that Shell’s dedication to the socio-economic development of the Niger Delta region remains a cornerstone of our presence in Nigeria.”

The award recognises Shell’s partnership with FRCN, particularly its support for the weekly live programme Canvas: Niger Delta Roundtable, which fosters crucial discussions on development issues impacting the region.

“While the award itself was unexpected, it reinforces the value of initiatives like Canvas,” Weli added. “This recognition motivates us to keep promoting development, not just in our operational areas but across the entire nation.”

Since 2017, Canvas: Niger Delta Roundtable has aired twice weekly on different radio stations in the Niger Delta with live online streaming. These broadcasts dedicate an hour to exploring topics relevant to the development of the region and its people.

The General Manager, FRCN Treasure FM Port Harcourt, Fred Onyeka Nwaulune, commended Shell’s partnership.

“Shell has been a reliable media partner, consistently educating the Niger Delta region on the importance of dialogue for development and peaceful solutions,” he said. “Their programme aligns perfectly with FRCN’s focus on sustainable development.”

He noted that through the dialogue radio programme, Shell had demonstrated a continued focus on driving progress and positive change in the Niger Delta and beyond.

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NNPC Ltd Eyes Gas Revolution With OB3 Gas Pipeline Project

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. . . FG Delighted With Project’s Progress

In yet another major step towards boosting nationwide gas supply to drive industrialization and economic growth, the Nigerian National Petroleum Company Limited (NNPC Ltd) is set to deliver the Obiafu-Obrikom-Oben (OB3) Gas Pipeline project.

Group Chief Executive Officer of NNPC Ltd, Mele Kyari, confirmed this during an inspection tour of the OB3 pipeline River Niger Crossing operation at Aboh, Delta State, on Saturday.

Biztellers reports that by design, the OB3 Gas pipeline is the inter-connector which links the Eastern gas pipeline network to the Escravos-Lagos Pipeline System (ELPS) in the West and the Ajaokuta-Kaduna-Kano (AKK) Pipeline in the North.

The River Niger Crossing operation has been the major impediment to the completion of the strategic OB3 Gas Pipeline for over three years due to failure of the various technologies deployed to achieve the construction of the 48-inch pipe under the river bed between Ndoni in Rivers State and Aboh in Delta State.

But with the adoption of the Micro-Tunnelling/Direct Pipe Installation technology, the new contractors, Messrs HDD Thailand/Enikkom and Tunnelling Services Group (TSG), are making a headway with about 860meters out of the 1,800meters achieved so far.

After the inspection tour, Kyari expressed delight at the breakthrough, which signals the imminent completion of the project.

“This is a major project of monumental value to our country. What this means is that this is the only way we can deliver the gas revolution. I am very happy and convinced that, latest by the middle of August, we will complete this project. I have been assured of that by the project team”, Kyari stated.

On the significance of the project, he said, “Once completed, we will see about 2.2billion standard cubic feet of gas coming into our network. We believe that this will give our country a breathing space of demand, I am sure we can catch up with that kind of demand in the next one and half years. We are happy that this will give us the platform to unleash the gas revolution in our country”.

Also speaking on the project, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, expressed satisfaction with the pace of work at the OB3 River Niger Crossing operation, describing it as “Renewed Hope at work”.

“I was here last year and I saw the work that was going on. There was a promise that it would be completed by December last year. I took it with a doubt. But today, from what I can see, I am confident that by July or August it will be completed and it will be commissioned by the President”, the Minister stated.

On her part, the Special Adviser to the President on Energy, Olu Verheijen, said she was looking forward to the completion of the project having been assured by the technical team that the right technology has been found to resolve the complex challenges of the River Niger Crossing.

“As the Minister and other speakers have said, we are looking forward to having this project deliver prosperity to Nigerians in the form of electricity and other areas”, Verheijen said.

The Managing Director of Tunnel Service Group (TSG), one of the contractors to the project, Mr. Ingo Justen, who is personally on ground to supervise the project on the request of the GCEO, expressed confidence that the current technology being applied in the execution of the project would lead to its speedy conclusion.

In a presentation earlier, the Managing Director of NNPC Gas Infrastructure Company (NGIC), Engr. Seyi Omotowa, disclosed that at the rate of progress with the new technology deployed, the River Niger Crossing operation, which is the only aspect of the OB3 Gas Pipeline Project left, will be achieved on schedule.

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Energy

Economic Conspiracy: Dangote Accuses IOCs Of Plotting Against Nigerian Refinery

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Dangote Tackle forex shortage with sugar

. . . Laments As Regulator (NMDPRA) Continues To Grant Licences For Importation Of Banned Dirty Diesel, Jet Fuel

There appears to be a strategy of economic conspiracy against Nigeria and Africa being manifest in the oil industry with the International Oil Companies (IOCs) through concerted efforts to frustrate oil refineries in the domestic economy.

Vice President, Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, levelled the accusation, at a one-day training programme for Energy Editors in Lagos.

He maintained that the IOCs in Nigeria were doing everything to frustrate the survival of Dangote Oil Refinery and Petrochemicals.

According to Edwin, the IOCs are deliberately and willfully frustrating the refinery’s efforts to buy local crude by jerking up high premium price above the market price, thereby forcing it to import crude from countries as far as United States, with its attendant high costs.

In addition, Edwin lamented the activity of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licences, indiscriminately to marketers to import dirty refined products into the country.

He said, “the Federal Government issued 25 licences to build refinery and we are the only one that delivered on promise. In effect, we deserve every support from the Government. It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported. We are calling on the Federal Government and regulators to give us the necessary support in order to create jobs and prosperity for the nation.”

According to him, “While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude. It would be recalled that the NUPRC, recently met with crude oil producers as well as refineries owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations (DCSO), as enunciated under section 109(2) of the Petroleum Industry Act (PIA).

“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production…

“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports Crude Oil and imports refined Petroleum Products. They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their GDP, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products. It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense. This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences, at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products.

“In spite of the fact that we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market. Since the US, EU and UK imposed a Price Cap Scheme from 5th February, 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.

“In fact, some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and the Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently. It is sad that the country is giving import licences for such dirty diesel to be imported into Nigeria, when we have more than adequate petroleum refining capacity locally…”

Recall that in May, Belgium and Netherland adopted new quality standards to halt the export of cheap, low-quality fuels to West Africa, harmonising its standards with those of the European Union. These measures synchronise fuel export standards with the European domestic market, specifically targeting diesel and petrol with high sulphur and chemical content. Historically, these fuels, with sulphur content reaching up to 10,000 ppm, were exported at reduced rates to countries like Nigeria and other West African consumers.

Belgium’s Minister of Environment, Zakia Khattabi, announced that his country followed the Netherland, which in April 2023 also prohibited the export of low-quality petrol and diesel to West Africa via the ports of Amsterdam and Rotterdam.

Khattabi emphasised that the Netherlands’ decision to restrict dirty fuel exports had redirected the trade to Belgium, now used by oil producers and traders to export gasoline with excessively high levels of benzene and sulphur.

“For far too long, toxic fuels have been departing from Belgium to destinations including Africa. They cause extremely poor air quality in countries such as Ghana, Nigeria, and Cameroon and are even carcinogenic,” said Khattabi.

In September 2017, an investigation by an international organisation, Public Eye revealed that polluted and toxic fuels were being exported on a large scale from the ports of Rotterdam and Amsterdam for export to African markets.

As much as a quarter of the petrol and diesel available in West Africa originates from the ports of Amsterdam, Rotterdam, and Antwerp. These fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe.

The Netherlands and Belgium were enjoined to enforce regulations to shield millions of Africans from exposure to toxic fuels.

The decision of the NMDPRA in granting licenses indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery to expand into foreign markets.

The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world. The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy.

He noted that because the refinery meets the international standard as well as comply with stringent guidelines and regulations to protect the local environment, it has been able to export its products to Europe and other parts of the world.

While appealing to the Federal Government and the National Assembly to urgently intervene for speedy implementation of the PIA and to ensure the interest of Nigeria and Nigerians are protected.

He said, “Recently, the government of Ghana, through legislation has banned the importation of highly contaminated diesel and PMS into their county. It is regrettable that, in Nigeria, import licences are granted despite knowing that we have the capacity to produce nearly double the amount of products needed in Nigeria and even export the surplus.

“Since January 2021, ECOWAS regulations have prohibited the import of highly contaminated diesel into the region.”

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